Things are escalating into a standoff at Montana’s state-owned ghost towns, where rising rents and theme park ambitions, along with a case of embezzlement, are frustrating the owners of some of the state’s top tourist attractions in neighboring Virginia and Nevada cites in southwest Montana and Reeder’s Alley in Helena.
Operators of popular attractions like the Illustrious Virginia City Players, a beloved seasonal theater and vaudeville show, say new lease terms drafted by the Montana Department of Commerce are unaffordable. The state is asking for a standardized 15% of gross sales from Virginia City restaurants and the town theater troupe, this after years of collecting smaller and varying amounts from businesses. Vendors have been told to accept the new terms or clear out by the end of the month, said Errol Koch, whose family has performed at the Virginia City Opera House for decades.
“To say that we ever had a gross, like a net profit, is laughable,” Koch said, “because everything we ever made either went to stockpile for the next season, to pay employees or to, like, just survive the winter. The profit part is negligible at best.”
The commerce department estimates that, before expenses, the Opera House brought in $126,000 in 2025. Rent would be $19,000 under the new lease terms. That would leave $107,000 to cover four months of payroll for roughly 15 employees.
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Actors spend the summer performing original plays and vaudeville acts in a small opera house anchoring the west end of the Wallace Street wooden boardwalk. The players are a main draw of the 1860s gold rush town that sprang up along the banks of Alder Creek and was the territorial capital until 1875.
The acting troupe lives in a collection of small cabins, also owned by the state. In addition to wanting a 15% cut in gross income, Koch said the state also wants rent for the cabins, and it wants the copyright for any material written by the performers, an ownership requirement Koch said is typically associated with major entertainment companies like Disney. The commerce department told Montana Free Press the copyright language has been in opera house contracts since 2009.
In a state budget committee hearing last week, commerce Deputy Director Mandy Rambo told legislators that Montana heritage properties in Virginia City, Nevada City and Helena’s Reeder’s Alley have fallen hundreds of thousands of dollars short of annual revenue expectations for several years. Tourist season revenues have been expected to exceed $1 million, but have mostly come in at $750,000 for the three locations.
Rambo cited mismanagement by the Montana Heritage Commission, a part of the commerce department that oversees the properties. Losses include a years-long embezzlement by a former executive director, Michael Elijah Allen, who earlier this month was sentenced to three years in prison and ordered to pay $280,000 in restitution. An accomplice, Casey Jack Steinke, was sentenced to one year in state custody and ordered to pay $100,000 in restitution.
“It is a mismanagement of funds through several scenarios, not charging rent to people, not charging market rents to people who are renting from the Heritage Commission, overspending funds that the commission did not have,” Rambo told lawmakers.
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LUXURY LODGINGS?
The changes come as the state eyes 99-year leases for parties to invest a “substantial amount” in improving heritage property. The change in the law, passed by the Legislature earlier this year, preceded by several months an elaborate proposal by California-based developer Auric Road to transform Nevada City into “a living frontier village — a 21st-century homestead camp where guests can immerse themselves in Montana’s heritage while enjoying modern comforts.”
Nevada City is the site of several buildings and antiques relocated from various locations by the former Virginia City curator Charles Bovey, whose estate sold its heritage assets to the state of Montana in 1997 for $6.5 million. The location is a less robust attraction than Virginia City.
The commerce department said last week that Auric Road withdrew its plan sometime after presenting it to the Montana Heritage Commission in September.
The pitch was luxurious, especially when compared to current Nevada City conditions. The local hotel is closed for major repairs. The proposal included three-star accommodations at a restored 14-room Nevada City Hotel, guest cabins with multiple bedrooms and enough extras to transform Nevada City into a year-round destination, according to Auric Road. There were also wall tents and Conestoga wagons with full indoor bathrooms. There was to be candle making, gold panning and glamorous camping, or “glamping,” at an area dubbed the “River of Gold.” The plans also called for adding a speakeasy railcar where craft cocktails would be served.
Auric Road, which operates Lone Mountain Ranch, withdrew a proposal for luxury lodging options in Nevada City, including glamping and Conestoga wagons with full indoor bathrooms. Credit: From the Auric Road proposal submitted to the Montana Heritage Commission
Rambo, testifying for the law change before the House Administration and Veterans Affairs Committee last February, specifically offered Nevada City Hotel renovations as an example of why the change in law was needed to attract companies with deep pockets, including a $1 million cost estimate for raising the two-story building to do foundation work.
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Auric made inroads into Montana’s heritage properties this summer when it took over management under contract for Virginia City’s Bale of Hay Saloon, which touts itself as Montana’s oldest bar. State officials said the contract, awarded July 24, spanned the remainder of the 2025 season. A contract for 2026 hasn’t been created.
Like other Virginia City properties, the 1863 bar is a state-owned enterprise leased to private vendors. After the commerce department parted ways with the previous vendor, Marie Clark, Clark took to social media, accusing the state of driving her out to make room for what she called “Lone Mountain Ranch,” a Big Sky-area resort property also owned by Auric Road.
Auric Road did not respond to an interview request made through the company’s website for this article. Clark said in an email this week that she and the state have reached a settlement over her dismissal from the lease. The department confirmed last week that it had paid Clark $20,000. The agreement prevents her from further disparaging the department, Clark said, and she has removed her earlier criticisms of the commerce department from social media.
Auric Road’s now-withdrawn plans for Nevada City sound out of tune to Virginia City vendors, who say their combined community is a regional draw, attracting Montanans who want to see an intact territorial mining town.
“There’s nothing they want to do that matches us at all,” said Shauna Laszlo Belding, who operates Bob’s Place, a pizza and sandwich restaurant, with her husband, Kirk Belding. “I go to (Auric’s) website, and you’re not staying in a room for $300 a night. Lone Mountain is $800 a night. Our clientele is regional families. They can’t afford that.”
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In Virginia City, a community with about 500 full-time residents, the reality of the frontier west is grittier than fiction. It’s a place where alleged outlaws led by a mining town sheriff were accused of robbing miners and hanged on “boot hill” by vigilantes who apprehended and killed more than 20 people. The deformed foot of one of those hanged, “Clubfoot” George Lane, was removed from his body and put on display in 1907. The foot didn’t stop being a tourist attraction for a century, but was cremated at the request of Lane’s family in 2017, when the community received a replica foot for display.
This photo of Virginia City was taken in 1866. Today the town is home to about 500 year-round residents and many more tourists in the summer sesaon. Credit: Historic American Buildings Survey/Historic American Engineering Record/Historic American Landscape Survey (HABS/HAER/HALS) Collection
Rocky dredge piles churned by mining operations that sifted through Alder’s placer 160 years ago are still heaped along the waterways, aka “River of Gold,” trailing from this community.
Virginia City is changing, Koch said. There’s a seasonal housing shortage. Homes that once provided affordable shelter for seasonal workers are now vacation rentals. Virginia City is still the Madison County seat. Taxes are still paid and divorces are still filed in the historic brick courthouse. There’s a two-cell jail with bars down in the basement.
Still, one bald mountain pass to the east, Montana’s modern gold rush of real estate, fly fishing and cattle is spreading fast in Ennis, population 1,100. The runway at the county airport accommodates personal jets. There’s a private mountain backroad to the ski resorts of Big Sky, which otherwise takes an 87-mile trip around the Madison Range to access.
The Beldings were five years into a 20-year lease when the commerce department informed them that the state wanted 15% of their gross income and their old lease was void. The new lease, non-negotiable, was also subject to annual revisions by the state.
Explaining the new terms to legislators last week, Rambo said the 15% was standard for “turnkey businesses,” meaning businesses with landlord-provided equipment and branding, capable of operating without tenant investment.
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REEDER’S ALLEY
Tenants say not all the properties are ready for business. In Helena’s Reeder’s Alley, it took the state 10 months to bring the stairway and deck leading to Chris Starr’s barbecue business into compliance with local regulations. The brick-paved alley is the oldest part of Helena, built in the 1870s alongside housing for miners.
Starr said he learned the stairs were out of compliance the hard way, on his second day of business in Reeder’s Alley operating RockStar BBQ. Helena safety inspectors told him the stairs would have to be roped off until they were repaired. He then learned that the same order about fixing the stairs had also been issued 10 years earlier. This time, the poor conditions of the deck and stairway resulted in a pause in his liquor license.
In the winter months, the icy walk to Rockstarr’s back entrance made the restaurant uninviting, Starr said. The business became fully accessible in August, about nine months after Starr moved in November 2024. Starr said the condition of the site during his first year as a tenant almost broke him financially.
Last week, the commerce department published a list of new lease terms for 24 historic properties in Virginia and Nevada cities and Reeder’s Alley. RockStarr’s rent was listed as $800 a month with utilities paid, a “partial kitchen and brand-new deck.”
One legislator from the Virginia City area bristled last week at the commerce department suggesting the Legislature mandated an increase in lease revenue by assuming that a percentage of the Heritage Commission Budget would come from leasing.
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“I understand that, and appreciate [it], that you can’t spend money you don’t have, but I think the terminology is a little bit misleading that, you know, the Legislature demanded or mandated that you do that,” Rep. Ken Walsh, R-Twin Bridges, told Rambo in committee Dec. 17.
Walsh said he recently consulted with former vendors of seasonal businesses and learned that a revenue share of 6% to 12% to the state was more feasible. Rambo had said the 15% rate was similar to what county fairs charge concessioners.
Lawmakers representing the Virginia City area were instrumental in making changes to the law sought by the commerce department concerning the management of the state’s heritage properties. Walsh carried a bill to allow the state to issue leases of up to 99 years.
Republican Sen. Tony Tezak, R-Ennis, carried a bill giving the commerce department more supervisory control over the heritage properties, a move away from the loose management by the Montana Heritage Commission during the embezzlement scandal.
The state’s heritage properties number 250. There are also 1.3 million historic artifacts, according to testimony from commerce department officials to the Legislature in February.
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If you care about hunting elk in crisp October air, floating a clear-running river for cutthroat trout, or simply taking your kids camping beneath a sky unspoiled by drill rigs, you should be outraged that Steve Pearce was ever considered to run the Bureau of Land Management.
The BLM is the largest landlord in the West. It oversees nearly 245 million acres of public land—millions of those acres in and around Montana’s most cherished places. This land is the backbone of our elk and mule deer herds, our sage grouse leks, our pronghorn migration routes and our blue-ribbon trout streams. It’s also the stage on which Montana’s hunting, fishing and outdoor recreation economy plays out.
Putting someone with Steve Pearce’s environmental record in charge of that land is like handing your cabin keys to the arsonist who’s always hated it. In the four months since Pearce was first nominated, it emerged that, if confirmed, he and his wife would divest from more than 1,000 oil and gas leases in Oklahoma to address potential conflicts of interest. While some senators strongly support his “active forest management” approach, he still faces opposition from groups alarmed by his record on public land transfers. On March 4, the Senate Energy and Natural Resources Committee voted 11-9 to advance his nomination, despite concerns from conservation groups.
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Pearce’s track record is no mystery. He has consistently sided with extractive industries at the expense of wildlife, habitat and public access. He has supported opening more public lands to oil and gas drilling, weakening bedrock environmental safeguards and undermining science-based management. His votes and public statements have signaled again and again that he sees wild country as an obstacle to be overcome, not a legacy to be stewarded.
For Montana, that posture is an existential threat. Our big-game herds rely on intact winter range and unfragmented migration corridors across BLM lands. Aggressive drilling, poorly planned roads and relaxed reclamation standards shred those habitats. Once you carve up a landscape with pads, pipelines and traffic, you don’t get solitude—or mature bull elk—back with the stroke of a pen.
Anglers should be just as alarmed. Headwater streams and riparian corridors on BLM ground are the life support system for native bull trout, cutthroat and wild trout. A BLM director hostile to environmental safeguards is far more likely to greenlight development that increases sediment, degrades water quality and depletes the cold, clean flows our rivers depend on.
If Pearce takes office, outdoor recreation—and the rural economies built around it—will not be spared. In Montana, hunting, fishing and outdoor recreation pump billions of dollars into local businesses, guiding operations, gear shops and main-street cafes. People travel here precisely because of the open space, healthy herds and functioning ecosystems that BLM lands help sustain. When those landscapes are sacrificed to short-term profit, we don’t just lose scenery; we lose jobs, identity and a way of life.
This is not a partisan issue, especially in Montana. Public lands are one of the few things we truly share: ranchers who graze allotments, tribal communities with cultural ties to these places, hunters and anglers who’ve long defended habitat, and families who just want a place to pitch a tent. A BLM director should be a careful, science-driven steward accountable to all Americans—not a politician with a history of dismissing environmental protections as red tape.
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Montanans know what’s at stake. We’ve fought bad ideas before—land transfers, giveaway leases, rollbacks to bedrock conservation laws—and we’ve won when we stood together. Steve Pearce’s nomination should have been dead on arrival. The fact that he was even on the list tells us how vigilant we must remain.
Our outrage must translate into action: calling elected officials, packing public hearings, writing letters and voting as if our public lands are on the line. Truly, they are. The BLM needs a director who sees these landscapes the way Montanans do: as sacred ground, not a balance sheet.
Anything less is a betrayal of the wild inheritance we’re supposed to pass on.
Benjamin Alva Polley is a place-based storyteller. His words have been published in Rolling Stone, Esquire, Field & Stream, The Guardian, Men’s Journal, Outside, Popular Science, Sierra, and WWF, among other notable outlets, and are available on his website.
California has launched a huge crackdown on criminals buying and registering supercars outside of the state to avoid eye-popping sales tax.
Fourteen people have been charged after $20 million worth of vehicles were sourced to the Big Sky State in what authorities are calling the “Montana Loophole.”
California has launched a huge crackdown on criminals buying and registering supercars outside of the state to avoid eye-popping sales tax. Office of the Attorney General of California
The cars include a $1.8 million McLaren Elva, a Porsche 918 Spyder and a $1.26 million Ferrari F12TDF, the attorney general’s office said.
In the Golden State base rate sales tax is 7.25%. For a Lamborghini or Ferrari that can reach up to $250,000 or higher, that can mean a tax bill over $18,000. In Montana it is zero.
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The gang, from Alameda, Marin, Santa Clara and Sacramento, allegedly dodged more than $1.8 million in taxes since 2018.
They are accused of filing false records showing the supercars were bought in Montana but then drove and kept them in California.
Fourteen people have been charged after $20 million worth of vehicles were sourced to the Big Sky State in what authorities are calling the “Montana Loophole.” Office of the Attorney General of California
The DMV has launched nearly 100 criminal investigations into similar schemes across California since 2023 and recovered $2.3 million. It says the schemes are costing over $10 million per year.
It says there are 601 fraudulently registered cars involved and the DMV and California Department of Tax and Fee Administration have reviewing all car sales made in Montana.
California AG Rob Bonta said: “When bad actors abuse legal loopholes and submit fraudulent documents to evade their obligations, the California Department of Justice will not stand idly by.
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“Every dollar of unpaid taxes is a dollar taken from California’s roads, schools and the vital services our communities rely on.”
The DMV has launched nearly 100 criminal investigations into similar schemes across California since 2023 and recovered $2.3 million. It says the schemes are costing over $10 million per year. Office of the Attorney General of California
The AG’s office said Beverly Hills was the city with the most suspicious car sales, with 416 cases on its radar from the luxury enclave.
It also released a series of text messages from defendants in Marin County and Walnut Creek, which said: “Don’t want the state of California to know anything about this car.”
Another asked: “Before you deliver it to him can you please remove the dealer plate.” One more asked if those with Montana plates had issues, the reply was: “Not yet.”
Another defendant added: “70k saved — I can’t believe the registration lasts for five years — that’s crazy. Stupid California. Paid 3k to own a 600k car for 5 years — lol in Cali that’s like 75k for 5 years. Hella dumb.”
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California DMV Director Steve Gordon said: “We encourage all Californians to do the right thing and register their vehicle here if they are operating it in California.”
The No. 2 seed Montana State Bobcats (23-6) will square off against the No. 8 seed Montana Lady Griz (9-21) in the Big Sky tournament Sunday at Idaho Central Arena, tipping off at 4:30 p.m. ET.
How to watch Montana Lady Griz vs. Montana State Bobcats
Stats to know
Montana State averages 74.8 points per game (42nd in college basketball) while allowing 60.9 per contest (101st in college basketball). It has a +403 scoring differential overall and outscores opponents by 13.9 points per game.
Montana State makes 7.5 three-pointers per game (61st in college basketball) at a 29.4% rate (244th in college basketball), compared to the 6.7 its opponents make while shooting 32.9% from deep.
Montana has a -270 scoring differential, falling short by 9.0 points per game. It is putting up 62.2 points per game, 252nd in college basketball, and is allowing 71.2 per outing to rank 310th in college basketball.
Montana hits 2.2 more threes per game than the opposition, 9.2 (12th in college basketball) compared to its opponents’ 7.0.
This watch guide was created using technology provided by Data Skrive.
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Photo: Patrick Smith, Andy Lyons, Steph Chambers, Jamie Squire / Getty Images
