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Council schedules public hearing on $200,000 Phoenix Building grant after public allegations of past misuse
Summary
Commissioners voted to hold a public hearing and place the $200,000 Phoenix Building redevelopment grant as unanticipated revenue after public criticism alleging past financial misconduct; county staff said the funds come from the Montana Main Street program, not federal CDBG funds.
The Butte Silver Bow Council of Commissioners voted unanimously on Dec. 22 to hold a public hearing on a $200,000 redevelopment grant for the Phoenix Building and to place the funding as unanticipated revenue in the 2025–26 budget.
At a public-comment session before the vote, James Kephart urged commissioners not to award money to the Phoenix Building or to NAN, saying the project is a “gigantic, multilayered fraud scheme” and alleging missing audits and improper accounting dating back decades. “This is a fraud scheme with Karen and Barbara Miller Everett that goes back 20 years,” Kephart said, adding he plans to pursue the matter in federal court.
Council members sought to confine discussion to the narrow communication before them — the $200,000 grant request. County Attorney Anruth advised that Kephart’s broader allegations about audits and past conduct are outside the specific communication, and Chief Executive Gallagher redirected the meeting to focus on whether the grant should be added to the county’s budget.
Director Karen Burns then told the council the money is from the Montana Main Street program and is not federal Community Development Block Grant (CDBG) money. “They actually applied for the funding last year, received the grant,” Burns said, adding that Butte-Silver Bow is acting as the pass-through to allow the Phoenix Building to spend the funds. “They are not funded with federal dollars for that program,” she said.
After the clarification, Commissioner Healy moved to hold the item in the Committee of the Whole pending the public hearing; the motion passed 9–0.
The council scheduled the public hearing for Dec. 23, 2025, to allow members of the public and project proponents to present written or oral testimony on the planned use of the Montana Main Street funds. The hearing will provide the formal opportunity for commissioners to consider the grant in a record that can accommodate additional questions about past audits and related allegations.
