Staff recommends Council conduct a public hearing and approve the application and resolution granting a tax abatement for Rocky Vista University, LLC in support of their $38M investment to expand the facility at 4130 Rocky Vista Way to create the new College of Veterinary Medicine.

The City operates a property tax incentive program under Montana law for certain remodeling, reconstruction or expansion of existing buildings. Rocky Vista University applied for a tax abatement under 15-24-1501, MCA and City Resolution 24-11243. This program encourages property remodeling, reconstruction and expansion by providing property tax reductions for the construction period and the first four years following construction. In the fifth and subsequent years, the improvements are fully taxable. To qualify for these tax benefits, the application must include building/site plans prior to construction beginning, the investment must be at least $500,000, the taxable value must show an increase of at least 2.5%, current taxes must be paid, and construction/expansion plans must meet all local and state regulations. Additionally, the applicant must provide an estimate of the number of new jobs that will be created along with the salary ranges and hiring schedule and provide a description of the economic impact. See Exhibit B of the attached Resolution 24-11243 for specific information about the requirements of the applicable program.

Since 2021, Rocky Vista University has been in Yellowstone County building the medical school campus in west Billings. Rocky Vista invested over $50M in constructing the first medical school in Montana. The school attracts a wide range of students from the region and beyond that live and work in Billings while attending classes. Rocky Vista University is expanding to open the first school of veterinary medicine in Billings and investing over $38M in construction costs. 

Rocky Vista University's application for a tax abatement on the building expansion at 4130 Rocky Vista Way includes interior and exterior improvements which began in October 2024 and are scheduled to be completed by March 2026. The property was valued at $26 million as of September 2024. Rocky Vista University currently employs 78 full-time employees and 42 part-time employees on its medical campus. It predicts adding 92 full-time and 10 part-time employees after the remodel is complete. Upon completion, Rocky Vista plans to have 170 full-time and 52 part-time positions on campus. See attached Application. 

Staff have confirmed the attached Application meets the required criteria for Council to consider approving a tax abatement for Rocky Vista University LLC. Council must conduct a public hearing before considering the attached proposed resolution granting a tax exemption. The hearing was advertised in the Yellowstone County News on March 28 and April 4, 2025.
 

City of Billings
Yellowstone County
Rocky Vista University LLC

City Council may:

• Approve the tax abatement for the amount requested; or,
• Approve a tax abatement for amounts other than requested; or
• Not Approve the request.

The property is valued at $26 million as of September 2024. It predicts adding 92 full-time and 10 part-time employees after the remodel is complete. If Council approves the application, Rocky Vista will not pay full property taxes on the net, new investment value until the incentive expires four (4) years after construction. The property will still be subject to the City's other fees and assessments.

The economic impact of the new College of Veterinary Medicine during construction through direct employment, construction, and compensation is projected to be $66.8 million. Upon completion, the school will have a direct economic impact projected at $9.2 million annually. The overall direct, indirect, and induced impact of the construction and start-up of operations of the veterinary college is projected to be $115.3 million, according to Big Sky Economic Development using JobsEQ economic impact software. Graduating veterinarians will join the workforce, providing continuity in existing veterinary practices and often start their own companies, providing additional positive economic impacts in Yellowstone County.