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Item 4.

City Council Regular
Date:	11/27/2023
Title:	Downtown Billings Partnership - Tax Increment Assistance - Yesteryear's Antique Mall Relocation
Presented by:	Wyeth Friday
Department:	Planning & Community Services
Presentation:	Yes
Legal Review:	No
Project Number:	N/A

RECOMMENDATION

The Downtown Billings Partnership (DBP) Board recommends the City Council approve up to a maximum reimbursement of $152,500 from Downtown Urban Renewal tax increment financing district funds to Yesteryear's Antique Mall for its relocation from 102 North 29th Street to the Hart-Albin Building at the northwest corner of North 28th and 2nd Avenue North. Actual reimbursement will be based upon 100% of the actual costs incurred for qualified expenses for renovation, subject to the following condition:

This TIFD reimbursement is the maximum that can be received pending satisfactory submission of all paid invoices showing the completion of expenditures related to this project.

BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)

The Downtown Billings Partnership staff working in coordination with the Yesteryear's Antique Mall and Zoot Enterprises brought this request for TIF funds to the DBP. The DBP Board discussed the request at its meeting in September and again in October to facilitate the relocation of the Yesteryear's Antique Mall from 102 South 29th Street to the Hart-Albin Building at Broadway and 2nd Avenue North. The request was vetted by DBP staff, the Development Committee and the DBP Board before the Board made a recommendation to City Council at its October 27 meeting to fund the project for up to $152,500. The relocation expenses include actual physical moving expenses of the Yesteryear's Antique Mall, some interior demolition work on the lower level of the Hart-Albin Building, publicly accessible ADA restrooms, some electrical utility upgrades, signage and parking.

This relocation effort is driven by a redevelopment project supported by the DBP Development Committee, the Downtown Billings Partnership Board and DBP staff that has been presented by Urban Frontier Development Services to redevelop 102 N 29th Street https://www.highplainsarchitects.com/on-the-boards/futurity-tower. The project proposes 2 floors of retail restaurant space, some commercial lease space, and 10 floors of a total of 120 apartments. More details of this project will be coming to the Council for consideration in early 2024, but the project will further address the downtown housing needs as well as create a major downtown anchor and active space at the intersection of two of the major travel corridors in Downtown Billings.

The relocation project and its purpose is in alignment with the elements/goals of the DBA Strategic Plan, North 27th Street Urban Renewal Plan, City TIF Policy and MCA as outlined in detail below:

The project addresses blight remediation (MCA 7-15-4282 through 7-15-4294 and Ordinance 12-5590) through the future demolition of the existing old building on the site. The use of TIF funds for relocation of occupants to facilitate redevelopment also is permitted per MCA 7-15-4288 (3).
The project further enhances the vibrancy of Downtown Billings through a twofold effort - redevelopment of the existing Yesteryear's location at 1st Avenue North and North 29th Street, and the occupancy of the lower level of the Hart-Albin Building (not occupied since the 1990s) at the northwest corner of 2nd Avenue North and North 28th with a significant business that is open 7 days a week and brings visitors from Billings and the region.
The application aligns with the issue of addressing housing in Downtown Billings in relation to the redevelopment project, business retention and support, as well as other elements/goals of the DBA Strategic Plan (may be viewed through this link https://downtownbillings.com/about/about-the-dba/), City TIF Policy, MCA, and the North 27th Street District Urban Renewal Plan (See Table 1 below and the DBP Board Recommendation document attachment).

Table 1.

Qualified Improvements	DBA Strategic Plan	City TIF Policy	Urban Renewal Plan	Montana Code Annotated
Site work and safety - Interior Demolition and Site Prep; ADA restrooms, utility upgrades Public access and area improvements - ADA compliance for restrooms	Vibrant &Connected Downtown Strong Downtown Identity --P.13 Transformative Initiative - P. 15 - Increase Downtown Residential Population Through Targeted Downtown Housing Initiatives	Permitted uses of TIF Funds: Demolition and structure removal - P.2 Relocation of Occupants - P. 2 Private infrastructure with Public Benefit -- P.2 Financial Assistance Through TIF -- P.2	Business Retention - - Targeted assistance and review of existing street level businesses - P.54 Crime Prevention and Public Safety - P.55	7-15-4202 (3) 7-15-4233 (i) 7-15-4288 (2) (3)

The DBP Board supports this use of TIF funds, recognizing the Yesteryear's Antique Mall continues to be a significant economic driver for Downtown Billings that needs to be supported because of the future redevelopment of its current location, redevelopment of 102 N 29th Street for additional housing and commercial activity is a critical step to providing housing and ongoing support of the City core, and activating a portion of the Hart-Albin Building with a retail business helps bring pedestrian traffic and more commerce to the SkyPoint intersection.

STAKEHOLDERS

The DBP Board Meeting and the City Council Meeting are both public meetings that members of the public may attend and provide comment on agenda items. PCSD staff was not aware of any public comment at the DBP Board meeting and had not received any comment from the public at the time this memo was prepared.

ALTERNATIVES

City Council may:

Approve the recommendation from the DBP Board for the expenditure of these TIF funds consistent with some elements/goals of the DBA Strategic Plan, North 27th Street Urban Renewal Plan, City TIF Policy and MCA.
Modify the recommendation from the DBP Board for the expenditure of these TIF funds before taking action, or;
Disapprove the recommendation from the DBP Board for the expenditure of these TIF funds. If the Council chooses not to approve this TIF application, specific reasoning for the denial is necessary to provide further direction to the DBP Board and staff, and City staff for future applications. Further, not approving this application could hinder the redevelopment of the property at 102 North 29th that is controlled by the DBP and City and is slated for a major mixed use redevelopment project that will bring additional housing and restaurant/retail development to Downtown Billings.

FISCAL EFFECTS

The recommendation is for up to $152,500 to be reimbursed to Yesteryear's Antique Mall and Zoot Enterprises for the identified building demolition, utilites, signage, restroom remodel to meet ADA requirements and moving expenses to facilitate the relocation of the Yesteryear's Antique Mall into the basement level of the Hart-Albin Building 2nd Avenue North and North 28th Street. The total relocation project cost, including the TIF funds request, is about $436,500, with Yesteryear's Antique Mall and Zoot Enterprises spending $284,000. While this is an unusual application as the relocation is necessary to allow redevelopment of a property the City and DBP control, the private to public investment ratio for this project is a little less than 2:1 or about 65% private to 35% public.

The funds are payable per the condition of approval outlined above in the DBP recommendation, pending satisfactory submission of all paid invoices showing actual cost incurred for the project. If approved, payment may be made in early 2024, as the City approved Downtown District Budget for FY24 included funding for this project, anticipating the relocation might occur.

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