The City has been working with DA Davidson on selling Tax Increment bonds to retire the debt for the Special Improvement District (SID) 1385 bonds.   SID 1385 bonds were sold in 2008 to finance the street improvements on King Avenue East, South Billings Boulevard, Newman Lane, Calhoun Lane and Orchard Lane, as well as water, storm drain and sanitary sewer facilities and irrigation drain crossings. The improvements were originally to be paid for using a Tax Increment Finance (TIF) revenue bond. The City was unable to sell a TIF revenue bond at that time, so a development agreement was made with the developer and Cabela's to sell a Special Improvement District bond. The South Billings TIF board voted in December 2014 to have the City sell TIF bonds to retire the SID 1385 bonds. 

This resolution authorizes the issuance of the bonds and a negotiated sale.

City Council may:

• Approve, or;
• Disapprove the parameters resolution.

The Miller Crossing increment is approximately $270,000 per year, and the new TIF revenue bond debt service payment is approximately $348,000 per year. The other properties in the TIF district will pay the remaining balance of approximately $78,000 per year.

Staff recommends that the City Council approve the resolution authorizing the issuance of the bonds through a negotiated sale.