The Billings Industrial Revitalization District (BIRD) Board of Directors recommends the City Council approve up to a maximum reimbursement of $137,086.47 from the EBURD tax increment finance district funds to Jarden Investments LLC (Tailwind Management Offices) to assist in the remodel and redevelopment of the property at 320 North 17th Street for business offices for Tailwind Management. Actual reimbursement will be based upon 100% of the actual costs incurred for qualified expenses for the improvements made to property subject to the following conditions:

1. The Applicant shall sign a development agreement with the City of Billings and BIRD within 180 days of City Council’s approval.
2. 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.
3. If funds are not available, reimbursement can be carried over to the next fiscal year.
 

The Billings Industrial Revitalization District (BIRD) Board of Directors is presenting this recommendation to the City Council for allocating up to $137,086.47 in tax increment finance funds (TIF) from the East Billings Urban Renewal District (EBURD) to provide financial assistance to Jarden Investments, LLC for redevelopment of property at 320 North 17th Street. The BIRD Review Committee considered the project at its meeting on February 12 and recommended approval of the project to the full BIRD Board. The Bird Board recommended approval of the project to City Council at its February 13 meeting.

Tailwind Management is a property management firm that focuses primarily on the management and maintenance of homeowners associations and commercial associations located in Yellowstone County. Tailwind Management was established in 2002 and has outgrown its current location.

The project will renovate the existing brick building to provide a new office and shop location for Trailwind Management. The structure is located at 320 N 17th Street and is a concrete block structure that has been primarily used as a warehouse. The project will entail demolishing all existing interior and converting the entire building into an office space. The building will also receive exterior facade improvements, adding architectural dimension, an entrance into the parking lot, and a paved lot for customer parking. While TIF funds are not being requested for improvements to the steel building located on the lot, improvements to that building's exterior are also planned.

The planned improvements include new fencing and landscaping.

The BIRD Board's recommendation of $137,086.47 toward the improvements results in about a 7:1 ratio of private investment for the project, including the purchase of the property. Total project costs are estimated to be $949,921 for project design, site work, construction, HVAC, and the property acquisition. TIF eligible expenses being requested for reimbursement include Architect Design Fees, Building Permits, Landscaping, Fences, Sidewalks, Curb & Gutter, Demolition, Parking Lot, Water SDF, Carpentry Materials, Windows, Electrical, and Security Systems which total over $232,760. The BIRD board is recommending 58.9% of this total for reimbursement.

 The BIRD Board noted several reasons for its support of the project:

• With the reuse and redevelopment of this property, this project is in alignment with the EBURD Urban Renewal Plan under its Business Programs and Projects goal (See page 3-4, item I of the Urban Renewal Plan Attached). Reuse and improvement of this property in the EBURD for business development works well with the urban renewal efforts and economic development goals of the City.

Table 1.

Qualified Improvements	Recommended TIF Reimbursement	City TIF Policy	Urban Renewal Plan	MT Code Annotated
Architect Fees, Building Permits, Landscaping, Fences, Curb & Gutter, Sidewalks, Demolition, Parking Lot, Water System Development Fee, Windows, Electrical, and Security System	$137,086.47	Section 1(a-c)	Section 2 (I) Business Programs and Projects	7-15-4233 7-15-4288

This process and action of the BIRD is under its authority per the Memorandum of Understanding between the City of Billings, Big Sky Economic Development, and the BIRD, Inc. approved by the City Council on May 13, 2019.

Current View

 

The City Council is the final authority in disbursing TIF funding. This proposed use of TIF funds conforms to the City's TIF Policy and aligns with the EBURD Urban Renewal Plan and Montana Code for urban renewal projects and programs. The City Council may:

• Approve the recommendation from the BIRD Board for the expenditure of these TIF funds, or;
• Modify and approve the recommendation from the BIRD Board for the expenditure of these TIF funds
• Disapprove of the recommendation from the BIRD Board for the expenditure of these TIF funds.

The request is for a total of up to a maximum of $137,086.47 to be reimbursed to Jarden Investments, LLC only upon completion of the work and submission of the invoices for the costs incurred. It is expected that this expenditure will not be incurred until FY25. If approved this expenditure will be included in the East TIF fund FY25 budget. The East TIF fund is projected to have sufficient revenue and cash for this project. 

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