The Boyer Group has completed a 105,000 square foot office building on the East Billings Urban Renewal District. The building is leased to the General Services Administration (GSA) for uses formerly in the Battin Building. As the building is privately owned, the full taxable value of the property will be realized.

The Boyer Group made application to the Billings Industrial Revitalization District, Inc. (BIRD) for a development incentive of East Billings Tax Increment Finance funds. Boyer is requesting that a development agreement be executed that provides partial reimbursement from the East Billings Tax Increment Finance District (TIF) for certain public improvements. The application and proposed reimbursements are similar to those agreed upon between the City and First Interstate Bank for its Ops Center. Funds for this agreement would come from the East Billings Tax Increment District.

The City Council may:
• Approve the agreement
• Not approve the agreement
• Modify the agreement regarding the amount or term

The proposed agreement would reimburse Boyer $613,741.60 over the remaining life of the TIF. The first payment would occur July 1, 2014, and continue annually until the full amount is paid. The FY15 payment would be up to $76,717.70 and the subsequent annual amounts would be calculated the same.

The Boyer GSA Billings LC building is currently occupied with tenants that were formerly found in the Battin Federal Building. A competitive selection process for lease space was undertaken by the United States Department of the Interior and the General Services Administration for a new site to house some of the functions formerly found in the Battin Federal Building. The site at 4th Ave N and N 20th met the criteria and was chosen from among other sites in the East Billings Urban Renewal District (EBURD). The Office Building supports the redevelopment vision that transforms East Billings Tax Increment District.

As the advisory body to the City Council for the EBURD, the BIRD makes recommendations regarding the expenditure of East Billings Tax Increment Finance District funds. An EBURD TIF application was submitted by GSA Billings, LLC detailing the scale and scope of the project and is included as an attachment. The TIF eligible improvements include demolition, curb, gutter, sidewalk, a HAWK Signal at 4th Ave N, landscaping, offsite utilities, and off street parking. The costs being reimbursed are eligible TIF costs as per Montana Code 7-15-4288.

The BIRD Board of Directors unanimously approved a recommendation for the expenditure of EBURD TIF funds for this project in the amount of $613,741.60. The final approval and allocation of these funds is at the discretion of the City Council. The adopted City of Billings FY14 Budget includes funds to provide as a development incentive to projects located in the EBURD.