Staff recommends Council approve the proposed agreements with the DBP, BIRDworks and SBURA to provide services for the three urban renewal districts.
 

The City’s agreements with the Downtown Billings Partnership (DBP), South Billings Urban Renewal Association (SBURA), and BIRDworks were originally approved in 2019 and have been extended several times, most recently to accommodate Senate Bill 3 (SB 3) requirements and allow the City to transition TIF funding recommendations to City-appointed advisory committees. Following Council direction, staff negotiated the most recent agreements approved in late 2025 that maintained existing processes while complying with state law.

During the FY27 budget process, Council directed staff to renew these agreements consistent with the approved FY27 operating budgets. The proposed agreements extend through June 30, 2027 and include several specific process elements the Council indicated it wanted and outlined in the Background Section of this memo. The final agreements have been reviewed with the districts and are attached to this memo for Council consideration.

On May 13, 2019, Council approved MOUs with each of the three urban renewal districts. These MOUs had terms of 5 years and expired in 2024. Council approved a 1-year extension of the MOUs in April 2024 with a new expiration date of June 30, 2025. An additional extension until October 1, 2025, was approved on June 23, 2025, following legislative changes (Senate Bill 3 "SB 3") which required the City to create its own advisory committees to provide recommendations regarding TIF funding. These recommendations were previously provided by the three private entities, South Billings Urban Renewal Association, Downtown Billings Partnership, and BIRDworks. During a July 21, 2025, work session, Council directed staff to proceed with developing agreements that would keep the current processes in place as much as possible while still complying with SB 3. Based on this, staff did not conduct an RFP for these services and negotiated directly with the three entities. On October 6, 2025, Council reviewed and discussed the draft agreements and provided some additional direction regarding terms of the agreement. City Council approved all three agreements with the Districts on December 9, 2025, with the expirations of the agreements set for June 30, 2026.

In discussions with City Council during the FY27 Budget process, staff was directed to renew the agreements with the DBP, SBURA and BIRDworks per the new FY27 operating budgets developed and approved by Council at its June 8 meeting. Per direction of the City Council Budget and Finance Committee, staff has prepared the attached updated agreements for FY27. These agreements include several elements Council indicated it wanted as well as some more standard language, including the following: 

1.    The term of the agreements shall be through FY27 and will expire on June 30, 2027;
2.    An option for renewal of the agreements after the first year and second year is included;
3.    A 60-day notice before any termination; and
4.    Payment is tied to the annual budget process instead of including specific dollar figures.

Staff shared these draft agreements with the districts and attached are the final drafts for Council consideration.

 

The City has previously used TIF funds to support these entities for the services provided to the City. Under these agreements, the annual contribution made to each entity will continue to be part of the annual budget process. The proposed cost for FY27 was approved by the Council in the FY27 Budget it approved on June 8. The amounts are:

• DBP - $258,102
• BIRDworks - $139,900
• SBURA - $126,250

The City Council may:
-Approve the agreements with the DBP, BIRDworks and SBURA to provide services for the three urban renewal districts; or,
-Modify the agreements with the DBP, BIRDworks and SBURA to provide services for the three urban renewal districts; or,
-Not Approve the agreements with the DBP, BIRDworks and SBURA to provide services for the three urban renewal districts. If the Council chooses not to approve the agreements, staff will need direction as to whether the agreements should be brought back at a future time and how the City staff will manage full support of the Districts internally.