The Billings Industrial Revitalization District (BIRD) Board of Directors recommends the City Council approve up to a maximum reimbursement of up to $634,185 from the EBURD tax increment finance district funds to Montana Tire (MBA Properties, LLC) to assist in construction of a new automotive tire shop on the full block along the north side of 1st Avenue North between 16th Street and 17th Street. 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 $634,185 in tax increment finance funds (TIF) from the East Billings Urban Renewal District (EBURD) to provide financial assistance to Montana Tire (MBA Properties, LLC) for the construction of a new automotive tire shop. The funds would be focused on site work, including landscaping, public right-of-way improvements, storm drainage, street lighting, utility connections to the property and signage.

The property is located on the north side of 1st Avenue North on the block between 16th Street and 17th Street. The subject property is vacant and the project will be all new construction. The application was initially submitted to the BIRD on May 13, 2025. The BIRD Review Committee considered this application on June 9 and recommended approval to the full BIRD Board. The BIRD Board reviewed and recommended approval of this project to the City Council at its board meeting on June 11.

2019 TIF Award for Demolition
The subject property was awarded $66,004 in EBURD TIF funds by the City Council in 2019 for demolition of a large commercial building that was on the property after a fire severely damaged the building and forced tenants to evacuate the structure (See attached Council Memo and Action Summary from the 10/28/19 Council meeting). The owner at the time of the demolition was J & S Properties and the total demolition cost was estimated at $198,670. If the current TIF award is granted for this property, a total of $700,189 in TIF funding will have been invested in the property for redevelopment in the past 6 years. An estimated $4 million of private funds will have been invested in the property redevelopment during that same time.

New Project Costs and BIRD Recommendation
The property has since changed hands and the new owner, MT Tire, is planning to redevelopment the site with a new tire shop. The total cost for the MT Tire project is $4,507,743. This does not include the land acquisition price of $1.5 million. The BIRD Board found that this project was in line with the EBURD Master Plan and Urban Renewal Plan, particularly in the areas of economic growth, property redevelopment, infrastructure improvements, and supporting commercial business in the District.

The BIRD Board's recommendation of $634,185 toward the improvements results in about a 7:1 investment in private to public funds for the project based on a total project cost of $4,507,743. This ratio exceeds the 5:1 recommended ratio in the City's TIF Policy. The TIF contribution also represents a 14% contribution toward the total project cost, below the 16.666% recommended threshold in the City's TIF Policy for qualifying expenses. The payback for this investment based on property tax increases is estimated at just under 14 years. The BIRD Board noted several reasons for its support of the project:

• With the renovation of this property, this project is in alignment with the EBURD Urban Renewal Plan under its Business Programs and Projects and Infrastructure Improvements goals (See Pages 3 and 4, item I and IV of the Urban Renewal Plan Attached), and
• The EBURD Master Plan's principles of fostering economic growth, and ensuring commercial operations continue. Improvement of this property in the EBURD aligns well with the urban renewal efforts of the City and the EBURD.

Table 1.

Qualified Improvements	Recommended TIF Reimbursement	City TIF Policy	Urban Renewal Plan	MT Code Annotated
Site Work (demolition, sidewalk repair/replacement, curb work, storm drain modifications, parking striping, landscaping, street lighting) Fire suppression system and connections, sewer service connections	$528,796 $105,387	Section 1(b)(c)	Section 2 (I) Business Programs and Projects Section 2 (IV) Infrastructure Improvements	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, renewed for one year on April 22, 2024, and extended until October 1, 2025 on June 23, 2025.
 

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 current award recommendation is for a total of up to a maximum of $634,185 to be reimbursed to Montana Tire (MBA Properties, LLC) only upon completion of the work and submittal of the invoices for the cost incurred. It is expected that this project will be completed in late FY26 and reimbursement will occur starting in FY27. There is not sufficient budget available in the FY26 Budget.