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Tempers flare at Virginia City meeting over Montana Heritage Commission lease decisions

A shouting match erupted after a Montana Heritage Commission meeting in Virginia City, where residents and officials clashed over new business leases and a lack of transparency.
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VIRGINIA CITY — Tempers flared at a public meeting with the Montana Heritage Commission in Virginia City, where members of the public voiced concerns about transparency — and a shouting match broke out after the meeting ended.

The emotional confrontation came after the state announced it is finalizing lease agreements with new business owners for the historic steakhouse and pizza shop in Virginia City. The Montana Heritage Commission declined to name the new business owners during the meeting, saying lease agreements are still being finalized.

WATCH: Tempers flared at a Montana Heritage Commission meeting in Virginia City over new business leases and transparency concerns

Tempers flare at Virginia City meeting over Montana Heritage Commission lease decisions

The exchange erupted between Montana Sen. Tony Tezak and Virginia City Mayor Justin Gatewood.

"We dropped the ball. Me and Ken Walsh dropped the ball. We let down Kirk. We made a mistake," Tezak said.

"You let down all of us," Gatewood said.

Virginia City resident Sean Bogue echoed that sentiment.

"You let down one of us, you let down all of us," Bogue said.

Tezak, who represents Senate District 35, said the situation weighs on him.

"The system just deteriorated and just collapsed on us, and here we are today, and it breaks my heart to think that Kirk's not going to be in business," Tezak said.

Tezak was referring to Kirk Belding, who operated Bob's Place for almost three decades. Belding and other business owners said in December that a lease increase of 15 percent of their gross revenue is not sustainable.

Before submitting letters from local children in support of local businesses, Gatewood questioned the state's transparency in the matter.

"I feel like you're rearranging the deck chairs on the Titanic. I mean, what we've dealt with since early December is a Commerce Department that does not want to listen to this town. We have begged for meetings…" Gatewood said.

Gatewood also submitted 150 letters from local area kids condemning the actions of the Department of Commerce.

I asked Bogue after the meeting whether he believes there will be transparency moving forward.

"Absolutely not. I listened to that meeting this morning. I listened to the other meetings, and to me, they are just…got a prewritten script and they don't really want to hear public comment," Bogue said.

The MHC voted to hold action on the 99-year-lease proposal and establish a working group to explore the issue. In June, the MHC will revisit the issue and discuss the composition of a working group.

Mandy Rambo, Montana Department of Commerce deputy director, said new leases will allow the state to be proactive.

"We're just being able to be proactive instead of reactive. Right now, we are fixing things because we literally have to because the roof is falling in or leaking onto a concessionaire's business," Rambo said.

Virginia City resident Joy Kinion offered a pointed message to the commission.

"We are not an amusement park, so please don't treat us like one. We are a historical treasure," Kinion said.

Members of the Heritage Commission declined to speak on camera when asked.

This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.