Consent 1.J.
Regular City Council Meeting
- Meeting Date:
- 06/23/2014
- TITLE
- Kraft Request for Tax Increment Assistance
- PRESENTED BY:
- Candi Millar
- Department:
- Planning & Community Services
Presentation:
PROBLEM/ISSUE STATEMENT
Carol Kraft owns a rental property located at 119 North 22nd Street. There is an abandoned property directly to the south of her rental property located at 115 North 22nd Street. After years of working through the Police Department and Code Enforcement Division to attempt to get the owner to better maintain the property, Ms. Kraft decided to purchase it so she could take care of it herself.
The property at 115 North 22nd Street includes two buildings and a shed. None are habitable, yet draw a great deal of transient activity. Associated problems are well known to both the City of Billings Police Department and Code Enforcement Division. Ms. Kraft has submitted a request for Tax Increment Finance (TIF) funds to help cover the costs of demolishing the neglected buildings.
Police Chief St John has provided a letter supporting Ms. Kraft’s project to remove this blight from the neighborhood. Neighboring businesses cited issues they’ve had with transients and wasp infestations on the property and are very supportive of seeing the property finally cleaned up.
Ms. Kraft purchased the property for $40,000. Total cost of the demolition is $14,065. Ms. Kraft is requesting $6,343 in assistance from the East Billings TIF District to cover 45% of the demolition costs. The board of the Billings Industrial Revitalization District (BIRD) and City staff have reviewed this application and are forwarding a recommendation for approval.
The property at 115 North 22nd Street includes two buildings and a shed. None are habitable, yet draw a great deal of transient activity. Associated problems are well known to both the City of Billings Police Department and Code Enforcement Division. Ms. Kraft has submitted a request for Tax Increment Finance (TIF) funds to help cover the costs of demolishing the neglected buildings.
Police Chief St John has provided a letter supporting Ms. Kraft’s project to remove this blight from the neighborhood. Neighboring businesses cited issues they’ve had with transients and wasp infestations on the property and are very supportive of seeing the property finally cleaned up.
Ms. Kraft purchased the property for $40,000. Total cost of the demolition is $14,065. Ms. Kraft is requesting $6,343 in assistance from the East Billings TIF District to cover 45% of the demolition costs. The board of the Billings Industrial Revitalization District (BIRD) and City staff have reviewed this application and are forwarding a recommendation for approval.
ALTERNATIVES ANALYZED
City Council may approve the request for $6,343 from the East Billings tax increment fund to remediate this blighted property or deny this request. Council also has the option of modifying the amount requested.
FINANCIAL IMPACT
The Billings Industrial Revitalization District is requesting approval of $6,343 in funds from the East Billings tax increment fund to cover 45% of the costs of the demolition. The East Billings Tax Increment District has $588,000 in its account, so this project will not adversely affect other District operations or projects. There is no impact to City General Funds or other City funds.
RECOMMENDATION
The Board of the Billings Industrial Revitalization District recommends approval of $6,343 from the East Billings tax increment fund to assist with the removal of blighted buildings within the East Billings Urban Renewal District.