VIRGINIA CITY — Virginia City business owners want tourists to know the historic Montana mining town is still welcoming visitors, despite recent closures of some state-owned properties due to controversial lease agreement changes.
The Montana Department of Commerce raised lease rates for businesses operating in state-owned historic properties, leading to the closure of a theater company and a restaurant in nearby Nevada City. Two other restaurant owners are pursuing legal action to remain open.
WATCH: Virginia City still open despite state lease dispute
"What we've been going through lately in some weird, strange behavior on the part of the state, relative to some of the businesses here, is not going to derail us. This town has way too much heart," said Justin Gatewood, who has served as mayor for 12 years.
Many visitors don't realize Virginia City includes numerous privately owned historic properties that continue operating normally, according to local business owners.
"I think a lot of people think that this whole town is state-owned. It is by far not state-owned," said Abbigail Lee, who operates Virginia City Cafe in a privately leased building.
Lee has run her cafe-style restaurant for six years and says the town's business ecosystem depends on both state and private properties working together.
"There are a lot of people here, and they need options. They need those people down there. We need them," Lee said. "I mean, we will do our very best to accommodate, and that's our plan, but it would be great if we had them down there."
Watch previous coverage: Virginia City business owners face steep rent increases from state
Julie Gabbard, owner of Julie's Gems, has operated her family mining business and storefront since 1990. She sells Montana gems, including garnets from the family mining operation and sapphires from locations across the state.
"Businesses are open. We are continuing to provide for customers as we have for the last 35 years," Gabbard said. "So it's going to be an interesting year to see what happens. We sure hope that the Montanans support us like they always do. Come down, visit us, cause we're still here."
Gatewood emphasized the town's resilience and long history of commerce.
"Virginia City has been open for business for all intents and purposes since May of 1863 when they discovered gold here," Gatewood said.
The two restaurant owners hoping to operate this summer have a court date in February. The Montana Heritage Commission recently put 99-year lease agreements on hold, and a public meeting will take place in March.
Mitch Staley with the Montana Department of Commerce said two businesses chose not to continue under the contract terms.
"MHC and Commerce are actively working on filling those locations and hope to have updates on new vendors in the coming weeks," Staley said.
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