VIRGINIA CITY — A district court judge has ruled that Virginia City business owners fighting new state lease terms must move their legal challenge from Madison County to Lewis and Clark County.
The business owners filed a preliminary injunction against the state after being presented with new lease agreements requiring them to pay 15% of their gross revenue to operate in the historic mining town.
WATCH: Virginia City business owners hit with another legal setback in their fight against the state
"I'm pretty disappointed in the fact that the state agencies aren't forming a partnership with us at this point," Shauna Belding said.
Belding is speaking for her husband, Kirk Belding, who has operated Bob's Place for almost 30 years, serving pizza and employing many local kids in their first jobs.
The Beldings are one of two business owners challenging the state's new lease terms.
The legal fight has taken a toll on the business owners as they hope to continue operating during the upcoming tourist season.
"I haven't even slept in two days. I mean, the attacks that are coming down from the Department of Commerce and Montana Heritage Commission, it's just a real stressor, and mentally I'm fried right now," Jason Lange said.
Lange is a restaurateur and chef who has operated out of the historic Wells Fargo Steakhouse for four years. He said he wants the issue resolved because he doesn't know what he'll do if he can't open his business this summer.
RELATED: Virginia City businesses fight state lease increases, some close doors amid legal battle
"I don't have many options. I mean, there's not a lot of opportunity for a guy like me. I mean, I'm not gonna go… I'm not a burger flipper. It's just not in my repertoire," Lange said, adding that he'll likely have to move to find a new job.
Stephanie Kruer, the attorney representing the business owners, said the 15% gross revenue requirement is not feasible for the restaurants.
"There is a giant disconnect between the Department of Commerce and the Heritage Commission with respect to these new leases. We are supposed to be partners with them. We have been partners with them, and at this point, they are canceling the partnership with very little opportunity for us to get any headway on how that's going to turn out. So, the next step would be further litigation. If that's the way the department is making their choices, then that's the way it's going to go," Kruer said.
She pointed to the state's own messaging about supporting small businesses.
"It's very plainly stated on the department's website, it says 'Montana is open for business,' and they promote and assist and help fund small business — that is their charge. We are a small business. We need that support and promotion, and we don't need controversy and closed doors," Kruer said.
A spokesperson for the Montana Department of Commerce said they do not comment on ongoing or potential litigation. Earlier this week, the department issued a statement that the state is working to fill vacated businesses.
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.
