The Downtown Billings Partnership (DBP) Board has reviewed the attached application for tax increment assistance and recommends the City Council not approve the request for tax increment finance funds from the Expanded North 27th Urban Renewal District to the Alberta Bair Theater Corporation, a 501(c)(3) non-profit.

 

Alberta Bair Theater (ABT) is a non-profit corporation that runs the Alberta Bair Theater located at 2722 3rd Avenue North. Because this property is owned by the City and operated by a non-profit, there are no property taxes paid on the property. The City of Billings owns fee title to the property. The ABT has leased the property from the City to operate a performing arts theater since October 18, 1982. Under the terms of the current lease agreement, dated October 18, 2012, the ABT has the right to possess the property through October 17, 2072, and is entitled to make whatever renovations and improvements that it deems appropriate.

Alberta Bair Theater intends to install bollards along the sidewalk on N. Broadway and 3rd Ave N. The ABT is requesting $112,065 toward the installation of bollards to provide protection of their building and pedestrians from vehicles. The total cost of improvements is estimated to be $112,065, to be partially funded by the TIF and with $29,065 from the ABT.

The DBP considered the application at its July 26th meeting and voted not to recommend $83,000 in TIF assistance. The DBP's decision was based on the district's financial projections and current priorities, which emphasize downtown housing, mixed-use projects, and public safety. While acknowledging the significance of the ABT and its importance downtown, the DBP's recommendation reflects a prioritization of these goals and limited financial resources. The DBP board recommends waiting for the two-way street conversion to occur prior to investing in the bollards, as the reconfiguration may provide the traffic-calming and safety that is desired.

Table 1. Alignment of Proposed Improvements with City TIF Policy, Expanded N27th URD Plan, and MT Code Annotated.

Qualified Improvements	DBA Strategic Plan	City TIF Policy	Urban Renewal Plan	Montana Code Annotated
Sidewalk Bollards		Permitted uses of TIF Funds: (1)(b) Public infrastructure, including , but not limited to: streets, storm drains, parking, public buildings, water and sewer lines, sidewalks, utility connections.	Infrastructure Improvements (Part V. p. 55) (vii) Streetscapes and traffic calming plans (viii) Sidewalks, curbs and gutter improvements	MCA 7-15-4288(4)

City Council may:

• Approve the application for TIF funds, contrary to the DBP's recommendation; or,
• Modify the requested amount or terms for the expenditure of TIF funds; or,
• Disapprove the application for TIF funds, in line with the DBP's recommendation.

This project was not included in the FY25 budget and the downtown TIF district lost 7.3% in taxable value this year. If approved, staff recommends that payment not occur until FY26 or later. The development agreement with the Rockman project (approved on 3/11/24), limits the ability for the TIF to fund new development projects prior to the completion of that project. The total amount requested for this project is $83,000 and will need to be budgeted in future years, as funds are available.