Staff recommends the approval of the Memorandum of Understanding between the City of Billings and Billings Tourism Business Improvement District (BTIB) that establishes a financial agreement to help offset operating costs for the Courts Complex at the Amend Recreation Campus.   

Parks, Recreation, and Public Lands (PRPL) has advanced planning for the Courts Complex at the Amend Recreation Campus (ARC), completing architectural design, conceptual drawings, and a construction budget estimated at $20 million, funded by the South Billings Urban Renewal Association (SBURA). A pro forma and operational analysis prepared by Johnson Consulting (April 2025) projects increasing annual revenues from $392,000 in year one to $639,000 by year three, alongside declining operating shortfalls from $260,000 to $53,000 over the same period.
To address these projected shortfalls, PRPL and City Administration engaged the Billings Tourism Business Improvement District (BTBID), which determined the project aligns with its mission. On April 10, 2025, BTBID conditionally approved up to $500,000 in funding over the facility’s first three years of operation. This includes $260,000 in FY27 (with both startup and year-end support), up to $185,000 in FY28, and up to $55,000 in FY29, contingent on demonstrated need through financial reporting.
The agreement includes a provision for BTBID and PRPL to reconvene 12 months prior to the end of the term to evaluate future funding or partnership opportunities.

PRPL has completed the architectural design for the construction and operation of the Courts Complex at the ARC, including the development of conceptual drawings and a preliminary construction budget estimated at approximately $20,000,000. This project is funded by the South Billings Urban Renewal Association (SBURA). In April 2025, Johnson Consulting delivered a finalized pro forma and operational analysis to the PRPL Department. The analysis projects annual revenues of $392,000 in Year 1, $486,000 in Year 2, and $639,000 in Year 3. Additionally, the projected operating shortfall is estimated at $260,000 in Year 1, $185,000 in Year 2, and $53,000 in Year 3. (This pro forma did not include PRPL staff recreation programming and minimal sponsorship revenue.) 

PRPL staff and City Administration met with the Billings Tourism Business Improvement District (BTBID) Board in September 2024, March 2025, and April 2025 to request financial support to offset projected operational shortfalls over a three-year period. The BTBID Board determined that the purpose and mission of the Courts Complex at the ARC align with its organizational goals. On April 10, 2025, the BTBID Board conditionally approved funding support for the facility’s operational expenses, subject to the conditions outlined in the MOU section titled: “Conditions Precedent to BTBID Funding Commitment."

The BTBID has committed up to $500,000 in total funding to the City, to be administered by PRPL during the first three years of facility operations. The funding distribution is as follows:

• FY27: $100,000 allocated at the beginning of the fiscal year for start-up operational costs, with up to an additional $160,000 available at year-end to address any operational shortfall, as identified through PRPL’s financial statements.
• FY28: Up to $185,000 available at year-end to address any operational shortfall, as identified through PRPL’s financial statements.
• FY29: Up to $55,000 available at year-end to address any operational shortfall, as identified through PRPL’s financial statements.

BTBID and PRPL have agreed to meet 12 months prior to the expiration of the MOU term to discuss potential future agreements. 

   

The BTBID has committed up to $500,000 in total funding to the City, to be administered by PRPL during the first three years of facility operations. The funding distribution is as follows:

• FY27: $100,000 allocated at the beginning of the fiscal year for start-up operational costs, with up to an additional $160,000 available at year-end to address any operational shortfall, as identified through PRPL’s financial statements.
• FY28: Up to $185,000 available at year-end to address any operational shortfall, as identified through PRPL’s financial statements.
• FY29: Up to $55,000 available at year-end to address any operational shortfall, as identified through PRPL’s financial statements.

Billings Tourism Business Improvement District (BTBID)
City of Billings
PRPL department 
Users of the Courts Complex at the ARC 
 

Council may:

• Approve the MOU between the City of Billings and the Billings Tourism Business Improvement District (BTBID);
• Disapprove the MOU between the City of Billings and BTBID