Castlerock Excavating, a business located at 51 North 15th Street, Suite 2 within the East Billings Urban Renewal District (EBURD) boundaries, has applied for Tax Increment Financing Assistance to demolish a fire-damaged building located at 1310 Montana Avenue and to replace existing storm drain at the end of Montana Avenue near the oft-flooded North 13th Street underpass.  Castlerock Excavating is owned by Mr. Walter Duffield.  The Billings Industrial Revitalization District (BIRD) and the City staff have reviewed this application and are forwarding a recommendation of approval.

The building demolition was permitted and has been completed.  This portion of the project was hastened at the request of City Code Enforcement in order to remove a public safety hazard and remove a blight.  The building was destroyed by fire prior to the purchase by Castlerock. The previous owner is in ill health and did not have the capacity to complete the demolition project.  The total cost of the demolition project is $33,500.  Casterock Excavating is requesting $15,075 or 45% of the total costs to remove the blighted building.

The storm drain at the end of Montana Avenue does not function properly and causes flooding in local businesses and often requires closure of the underpass at 13th Street.  The pipe to be replaced extends from North 15th Street to the east terminus of Montana Avenue for 680 feet.  The business owner is supplying his own expertise and capital to fix the storm drain to alleviate interruptions to new operations that he is locating in the area.  Castlerock Excavating holds an excavating bond, utility bond, demolition bond and required liability insurance with the City of Billings necessary to complete the project.  The new operations bring with them seven new full time positions.  Total project cost is $82,000 and Castlerock Excavating is requesting 45% of those costs or $36,900.

The combined cost of both projects is $115,500.  The Billings Urban Renewal District and City staff are recommending Council approve the expenditure of EBURD tax increment funds for 45% of those costs or $51,975.

Building demolition.  An alternative would have been to have the previous owner remove the building.  This was not feasible as the owner is experiencing health challenges that do not allow him to be able to undertake such a project.

Storm drain.  The state’s responsibility for Montana Avenue ends at North 15th Street and the City has not budgeted funds for this infrastructure improvement.

City Council may choose to approve the fund request, modify the amount approved, or deny the request.
 

The Billings Industrial Revitalization District is requesting approval of $51,975 in funds from the East Billings Tax Increment account to cover 45% of the costs of the project. The East Billings Tax Increment District has $588,000 in its account, so this project cost will not adversely affect other District operations or projects.  Since the building demolition has been completed, Mr. Duffield could immediately be reimbursed for that part of the project.  Reimbursement for the storm sewer costs would occur when that part of the project has been completed.  There is no impact to City General Funds or other City accounts.

The Board of the Billings Industrial Revitalization District recommends approval of $51,975 from the East Billings Tax Increment Account to assist with the removal of a blighted building and improvement of infrastructure within the EBURD boundaries.  The funds will be reimbursed to the business owner as the project components are completed.