The Billings Industrial Revitalization District (BIRD) Board of Directors recommends the City Council approve up to a maximum reimbursement of $40,837.16 from the EBURD tax increment finance district funds to 1889 Brewing Company LLC to assist in the remodel and redevelopment of the property at 204 North 13th Street for construction of a brewery and taproom. 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 $40,837.16 in tax increment finance funds (TIF) from the East Billings Urban Renewal District (EBURD) to provide financial assistance to 1889 Brewery LLC for the redevelopment of property at 204 North 13th Street. The BIRD Review Committee considered this project at its April 3rd, 2024 meeting. The BIRD Board recommended approval of the project to City Council at its April 3rd, 2024 meeting. 

1889 Brewery will be located at 204 N. 13th Street, and the plan is designed to renovate an existing steel building to provide a new brewery and tap room. The current structure was primarily used for auto dent repair. They are not purchasing the building, but have full permission to do all the improvements.

The project entails demolition of all existing interior structures and converting the entire building into a brewing area and a tap-room which will include a large bar and seating for patrons with two new ADA-compliant bathrooms. Exterior improvements will include façade improvements, new concrete pads and new city sidewalks, landscaping, building lighting and signs. 

The BIRD Board's recommendation of $40,837.16 toward the improvements results in about a 7:1 ratio of private investment for the project. Total project costs are estimated to be $300,664 for project design, site work, and construction. TIF eligible expenses being requested for reimbursement include Architect Design Fees, Building Permits, Landscaping, Fences, Façade, Sidewalks, Curb & Gutter, Doors, Windows, Electrical, and Security Systems which total over $119,000. The BIRD board is recommending 34.3% of this total for reimbursement.

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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.
 

The City Council is the final authority on 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 $40,837.16 to be reimbursed to 1889 Brewery 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.