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Item 1.D.
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| City Council Regular | |
| Date: | 10/23/2023 |
| Title: | MOU with Billings Tourism Business Improvement District |
| Presented by: | Gina Dahl |
| Department: | Legal |
| Presentation: | No |
| Legal Review: | Yes |
| Project Number: | N/A |
RECOMMENDATION
Staff recommends approval of the Memorandum of Understanding (MOU) with the Billings Tourism Business Improvement District (TBID). This was reviewed during the October 16, 2023 Work Session and no changes were made.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
On July 10, 2023, Council approved a resolution calling for a special election on November 7, 2023, on whether the City should be authorized to issue general obligation bonds not to exceed $143 million for parks, trails, and recreation projects. Council also approved an Initiative directing staff to prepare a resolution related to the parks, recreation, and trails bond issue that would outline the agreements and commitments made by the City and private partners and to provide guidelines regarding decision-making related to the debt financed parks projects for future Councils. The project management resolution was approved by Council on August 28, 2023.
One of the commitments referred to in the resolution was the Billings Tourism Business Improvement District (TBID) conditionally agreed to provide funding for administrative, operational, promotional, and marketing expenses up to $800,000 per year for ten years to help defray the anticipated deficit in operating costs for the recreation center. The TBID will seek to increase the assessment to fund this commitment. The resolution also required an MOU to formalize this commitment before the November 7, 2023, election.
The MOU memorializes this commitment and indicates the TBID will seek to increase the assessment starting in FY 2025 with funding to begin after completion of construction and the recreation center has begun operating, with a specific date to be determined by the parties. The TBID will seek to renew the district for an additional ten-year period prior to expiration of the current term in October 2027.
The draft MOU was attached to the October 16th work session staff memo and presented to Council at that time. Staff answered questions regarding the MOU and provided a legal opinion that the use of these funds for operations and maintenance of the recreational center is an allowed use.
One of the commitments referred to in the resolution was the Billings Tourism Business Improvement District (TBID) conditionally agreed to provide funding for administrative, operational, promotional, and marketing expenses up to $800,000 per year for ten years to help defray the anticipated deficit in operating costs for the recreation center. The TBID will seek to increase the assessment to fund this commitment. The resolution also required an MOU to formalize this commitment before the November 7, 2023, election.
The MOU memorializes this commitment and indicates the TBID will seek to increase the assessment starting in FY 2025 with funding to begin after completion of construction and the recreation center has begun operating, with a specific date to be determined by the parties. The TBID will seek to renew the district for an additional ten-year period prior to expiration of the current term in October 2027.
The draft MOU was attached to the October 16th work session staff memo and presented to Council at that time. Staff answered questions regarding the MOU and provided a legal opinion that the use of these funds for operations and maintenance of the recreational center is an allowed use.
ALTERNATIVES
City Council may:
- Approve; or,
- Not Approve
FISCAL EFFECTS
This will provide funding up to $800,000 to help defray operational deficits of the recreation center for a period of ten years.