Commerce Grants Help Small Business Revive Historic Downtown Miles City Building
In Miles City, two Montana Department of Commerce grant programs joined forces to make one small business’ vision of downtown revitalization a reality. Architect Brandon Janshen, interior designer Jenna Janshen and SDI Architecture and Design Operations Manager Kelsey Merritt sought assistance from Commerce when their dream of renovating the Mountain States Telephone Building began to seem impossible.
The Montana Historic Preservation Grant and the Montana Main Street Programs, established in 2019 and 2005, respectively, are administered by Commerce’s Community MT Division. These grants, along with other programs and guidance, strengthen Montana communities by supporting sustainable development of Montana’s charming, vibrant towns.
“Preserving Montana’s historical heritage and restoring our downtown districts benefits all Montanans,” said Commerce Director Marta Bertoglio. “These grant programs are often the key to kickstarting projects that attract visitors, stimulate the economy and improve the quality of life in rural areas as well as our larger cities.”
SDI Architects and Design in Miles City is the only full-scale commercial architecture firm for Montana east of Billings. The Janshens purchased the century-old Mountain States Telephone Building in May 2019 through their LLC, MSTB. Though the husband- and-wife team had their eye on the Renaissance Revival building for a while, they weren’t quite ready to purchase it.
“We had looked at the building previously and actually put in an offer, but we pulled out after the inspections because we knew the renovations were going to be really excessive,” said Brandon Janshen. “But the original owners reached out to us and asked us to put in another offer.”
After purchasing the building and replacing the leaky roof, they faced another hurdle: the HVAC, plumbing and electrical systems. Despite the building’s polished exterior, the inside was so antiquated that it became problematic to operate as a commercial office space. Finding their utility bills far exceeded what they could ask for rent, the Janshens made the difficult decision three years ago to let the building sit vacant. The COVID-19 pandemic further complicated their plans. With supply chain issues more than doubling the cost of needed renovations, the project ground to a halt.
Jenna Janshen explained, “That was our only option. Our vision is to completely renovate the interior and the building systems so we can offer leasable office space that is severely lacking in our downtown district. We have shopping, dining and watering holes, but we don’t have a ton of office space. We’ve received multiple calls from folks interested in leasable office space, and we’ve had to turn them away. We’re really looking forward to the day when we can say, ‘Yes, we have space available for you.’”
Their dreams for the historic building, which sits across the street from SDI’s office, moved to the back burner until 2022, when the Janshens added Operations Manager Kelsey Merritt to the SDI team. Jenna Janshen began searching for a way to get the project moving again and discovered Commerce’s MHPG Program. In fall 2023, Merritt helped the Janshens decide to pursue MHPG funding, and the team began assembling the materials needed for the grant application.
The Janshens were quick to credit Merritt’s tenacity, confidence and writing talent for the project’s success. Brandon Janshen said, “Because of the time investment, MHPG was a big risk. The fact that we were able to do it in-house made the difference.”
The MHPG Program has been vital in smaller and rural Montana communities, where historic buildings can languish in deteriorating downtown districts. Because the renovations required to make the buildings habitable are so costly, many small businesses like SDI and its clients simply can’t afford to move ahead with revitalization efforts without high-dollar funding options like MHPG.
Applying for MHPG funding, a process that stretched from fall 2023 to February 2024, didn’t guarantee SDI would be able to restart the Mountain States Telephone Building project. However, while she waited on the outcome of the grant application, Merritt was far from idle. She kept searching for funding opportunities, and in September 2024, SDI learned of a second Commerce program that could help.
“I heard about Montana Main Street at a lunch meeting, and the application was due at the end of the day,” Brandon Janshen said. “Kelsey said we could get it done because of our MHPG grant application.” Without the work they’d already put into applying for MHPG funding, a deadline that short would have been impossible to meet. They applied for the MMS grant, and in October 2024, Miles City was awarded $100,000 for the Mountain States Telephone Building project. Phase One of the renovations finally got underway.
Gutting the building’s interior, which included hazardous materials abatement, has helped the Janshens see progress that was stalled or difficult to discern for years. With the addition of new windows and doors this fall, the building’s “thermal envelope” will be ready for Phase Two: the interior remodel. That portion of the project will be funded by the MHPG.
When the project moved into to the legislative portion of the MHPG process in early 2025, the SDI team came to Montana’s State Capitol ready and eager to talk about the progress they’d made since submitting their grant application almost one year prior. In addition to the MMS funds, they’d secured an award from their local Tax Increment Financing District and were able to show the legislative committee that they were serious about this project and capable of seeing it through. Even so, success wasn’t guaranteed.
At one point during the legislative process, the Mountain States Telephone Building project was taken out of the MHPG bill and stricken from funding. The SDI team continued fighting because Commerce staff encouraged them to remain engaged and show up. Thanks to a local legislator, the project was re-added to the MHPG bill. The SDI team said, “Commerce’s willingness to continually uplift us when it felt frustrating was what helped us continue and the reason why our MHPG application was successful. The people in those roles are engaging. Everybody takes their job seriously. They’re going above and beyond, and we’re testament to that.”
MSTB, LLC was awarded $150,000 in MHPG funds for the Mountain States Telephone Building project in June 2025. Merritt and the Janshens said none of it would have been possible without the support of Commerce’s Community MT Division staff, like Community Development Block Grant Coordinator Rosie Goldich and the Community and Economic Vitality Programs Team: Program Specialist Lauren Dean, Program Supervisor Jordan Conley and Program Specialist Micky Zurcher. They were available every step of the way, and they made sure each need was met, each question was answered and every temptation to give up was defeated by encouragement and a positive attitude.
“Every time we’ve had a question, it’s met with a can-do attitude, or will-do, or we’ll figure it out,” Brandon Janshen said. The SDI team also received support from the Southeastern Montana Development Corporation, other community members who shared their experience with the MHPG grant and their local Stockman Bank branch.
Their success continues to have positive impacts in Miles City and throughout Eastern Montana. Downtowns there are working to revitalize but are up against hurdles that may not be as visible or frequent in the western half of the state. As she flourishes as a grant writer, Merritt is putting her experience and contacts to work for her community. Having gone through the MHPG process, SDI can now act as a resource for their clients and their larger community.
“By having these conversations and asking these questions, you start to see how many programs work together, how they scaffold one another and how you can pursue different opportunities to make a project,” Merritt said. “Just be willing to reach out to your contacts and your resources. Reach out to Commerce and ask the questions. Be comfortable with not knowing and finding the answers along the way.”
The Mountain States Telephone Building, which once brought telephone service for the first time to Eastern Montana, is coming back to life. Interior demolition is already complete, with newly exposed 13-foot ceilings and interior supports showcasing the building’s potential as a modern, energy-efficient office space in the heart of downtown Miles City.
For more information about the MHPG and MMS Programs as well as other grant opportunities available through Commerce’s Community MT Division, visit commerce.mt.gov.
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