Regular 5.
City Council Regular Business Meeting
- Meeting Date:
- 05/11/2026
- TITLE
- SBBURD Expansion Ordinance Amendment - Public Hearing and 1st Reading of Ordinance
- PRESENTED BY:
- Wyeth Friday
- Department:
- Planning & Community Services
Presentation:
Yes
Legal Review:
Yes
Project Number:
NA
RECOMMENDATION
Staff recommends Council conduct a public hearing and on first reading amend the South Billings Boulevard Urban Renewal District Expansion Ordinance to correct a property description and mapping error.
EXECUTIVE SUMMARY
The City Council at its meeting on November 11, 2025 approved Ordinance 25-5922 on second reading to expand the boundary of the South Billings Boulevard Urban Renewal District (SBBURD) and adopt a modified Urban Renewal Plan, including a tax increment provision. The City received confirmation on March 26, 2026 from the MT Department of Revenue (MTDOR) that it had reviewed the expansion process and associated documents as submitted by the City of Billings and Pioneer Technical Services, determined them complete, and set the base year for the SBBURD expansion area for 2025.
During review of the SBBURD expansion documents, it was determined between MTDOR and the City that there had been a mapping and legal description error where two properties that are only in Yellowstone County had been captured in the mapping and legal description process. Properties only in the County cannot be in an Urban Renewal District. City staff has prepared a corrected legal description and ordinance for the City Council to act on and remove the County properties from the map and description. Since the map and description were attached to the also adopted updated SBBURD Urban Renewal Plan, staff also has included the new map and description in the Plan and attached it as well.
City Council will have two readings of the amended ordinance. The first, with a public hearing, is at this meeting. The second reading will be at its May 26 business meeting.
During review of the SBBURD expansion documents, it was determined between MTDOR and the City that there had been a mapping and legal description error where two properties that are only in Yellowstone County had been captured in the mapping and legal description process. Properties only in the County cannot be in an Urban Renewal District. City staff has prepared a corrected legal description and ordinance for the City Council to act on and remove the County properties from the map and description. Since the map and description were attached to the also adopted updated SBBURD Urban Renewal Plan, staff also has included the new map and description in the Plan and attached it as well.
City Council will have two readings of the amended ordinance. The first, with a public hearing, is at this meeting. The second reading will be at its May 26 business meeting.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
The City Council at its meeting on November 11, 2025 approved Ordinance 25-5922 on second reading to expand the boundary of the South Billings Boulevard Urban Renewal District (SBBURD) and adopt a modified Urban Renewal Plan, including a tax increment provision. The City received confirmation on March 26,2026 from the MT Department of Revenue that it had reviewed the expansion process and associated documents as submitted by the City of Billings and Pioneer Technical Services, determined them complete, and set the base year for the SBBURD expansion area for 2025.
During review of the SBBURD expansion documents, it was determined between MTDOR and the City that there had been a mapping and legal description error where two properties that are only in Yellowstone County had been captured in the mapping and legal description process. Properties only in the County can not be in an Urban Renewal District. City staff has prepared a corrected legal description and ordinance for the City Council to act on and remove the County properties from the map and description. Since the map and description were attached to the also adopted updated SBBURD Urban Renewal Plan, staff also has included the new map and description in the Plan and attached it as well.
PROCEDURAL HISTORY
During review of the SBBURD expansion documents, it was determined between MTDOR and the City that there had been a mapping and legal description error where two properties that are only in Yellowstone County had been captured in the mapping and legal description process. Properties only in the County can not be in an Urban Renewal District. City staff has prepared a corrected legal description and ordinance for the City Council to act on and remove the County properties from the map and description. Since the map and description were attached to the also adopted updated SBBURD Urban Renewal Plan, staff also has included the new map and description in the Plan and attached it as well.
The District was formed and amended in 2007-2008, the Urban Renewal Plan for the District was amended in 2019, and the District was expanded in 2021, adding 5 new properties to the SBBURD. While expanding urban renewal districts is not common, it is a tool available to communities under the urban renewal laws, and Billings has most recently used the tool in the SBBURD with the minor expansion in 2021. The process mirrors the process to create a district, with Council taking action on a resolution of intent to expand the District, updating the Urban Renewal Plan, notification of property owners both within the existing SBBURD boundary and the area to be included in the expansion, Planning Board review of expansion, legal notice of public hearing, and final Council action to expand the District. Based on an analysis by City staff and Pioneer Technical Services completed in August 2025, it was found that properties within the proposed 903-acre expansion area have qualifying conditions per MCA, Title 7, Chapter 15, Part 4206, that the area requires public infrastructure improvements, and the expansion area could benefit from program recommendations in the currently adopted SBBURD Urban Renewal Plan.
- On August 5, 2025 the South Billings Urban Renewal Association (SBURA) heard an update on the plans to expand the District.
- On August 5, City staff attended a Billings School District Development Committee Meeting and provided the trustee with information about the proposed SBBURD expansion, key dates for action, and the date and location of the Community Information Meeting and Council public hearing.
- On September 2, the Council at its Work Session heard a presentation on expansion of the SBBURD and directed staff to move the process forward formally.
- On September 4, City staff attended a Yellowstone County Board of County Commission Discussion Session and provided the Commission with information about the proposed SBBURD expansion, key dates for action, and the date and location of the Community Information Meeting and Council public hearing.
- On September 22, the Council approved a resolution of intent to expand the district and set a public hearing date for October 27, 2025.
- On September 24, City staff mailed a notice to all property owners in the existing SBBURD and in the proposed expansion area to notify them of the date and location of the Community Information Meeting and Council public hearing.
- On October 1, City staff attended the Elysian School District #23 Trustee meeting and provided information about the proposed SBBURD expansion, key dates for action, and the date and location of the Community Information Meeting and Council public hearing.
- On October 9, a Community Information Meeting was held at Orchard Elementary School to inform property owners in the SBBURD, in the proposed expansion area, and for the community in general of the plans to expand the District.
- On October 14, the Yellowstone County Board of Planning acted affirmatively on a recommendation to the City Council as to the SBBURD expansion's consistency with the 2016 City of Billings Growth Policy. Growth Policy conformance also is outlined in Section 2 of the Review of Conditions that Contribute to Blight report attached to this memo.
- On October 27, the City Council conducted a public hearing and approved the ordinance on first reading to expand the boundary of the South Billings Boulevard Urban Renewal District (SBBURD) and adopt a modified Urban Renewal Plan, including a tax increment provision.
- On November 11, 2025, City Council approved the ordinance modifying the SBBURD on second reading. The ordinance took effect 30 days after second reading on December 10, 2025.
- City staff completed the process of Department of Revenue approval of the expansion process and setting 2025 as the base year for the expanded area of the SBBURD, by providing the required documentation to DOR and communicating with DOR to finalize the process. During review of the SBBURD expansion documents, it was determined between MTDOR and the City that there had been a mapping and legal description error where two properties that are only in Yellowstone County had been captured in the mapping and legal description process.
- DOR confirmed the process was conduct per State Law and set the base year for the SBBURD expansion area in March, 2026.
FISCAL EFFECTS
The exact financial impact of modifying the SBBURD is unknown. There were cost associated with City staff time and the consultant help for City staff on the expansion process, which was about $25,000 for the consultant time only. There are minimal GIS, PCSD, Legal and Finance staff costs involved in this map and legal description amendment process.
However, the real benefit of the overall effort was the purpose of an urban renewal and tax increment district, which is for the public to invest in infrastructure and improvements to thereby encourage private investment that increases the taxable value in the District and leaves all taxing jurisdictions and the community better off in the future that they would have been if the District never existed. In other words, without the public investment, it is assumed private investment would not occur, thus there is no "loss" of taxes from freezing the taxable value base because all taxing entities continue to collect taxes on the base value as it is today and, ultimately, realize an increase in revenue in the future.
However, the real benefit of the overall effort was the purpose of an urban renewal and tax increment district, which is for the public to invest in infrastructure and improvements to thereby encourage private investment that increases the taxable value in the District and leaves all taxing jurisdictions and the community better off in the future that they would have been if the District never existed. In other words, without the public investment, it is assumed private investment would not occur, thus there is no "loss" of taxes from freezing the taxable value base because all taxing entities continue to collect taxes on the base value as it is today and, ultimately, realize an increase in revenue in the future.
STAKEHOLDERS
The Billings community as a whole, property owners within the proposed expansion area and those within the current SBBURD, Yellowstone County, The City of Billings, Billings School District and Elysian School District were all stakeholders in the SBBURD expansion process. The owners of the properties included in the expanded SBBURD area and those within the existing SBBURD were all properly notified in 2025 of the Council public hearing on the expansion. Yellowstone County, Billings School District #2, and Elysian School District #23 also were all notified of the process. Notification of the public hearing for this meeting also was provided in the Yellowstone County News.
ALTERNATIVES
City Council may:
- Conduct a public hearing and approve the ordinance on first reading to amend the South Billings Boulevard Urban Renewal District Expansion Ordinance to correct a property description and mapping error.
- Conduct a public hearing and not approve the ordinance on first reading to amend the South Billings Boulevard Urban Renewal District Expansion Ordinance to correct a property description and mapping error. Not approving the ordinance would leave property within the SBBURD expansion area map and description that is not in the City Limits and, therefore, not qualified under the state urban renewal statutes.