Consent 1.F.
Regular City Council Meeting
- Meeting Date:
- 12/21/2015
- TITLE
- SBURA TIF Funds Request for Northridge Assets, LLC
- PRESENTED BY:
- Candi Millar
- Department:
- Planning & Community Services
Presentation:
PROBLEM/ISSUE STATEMENT
The South Billings Urban Renewal Association (SBURA) is requesting approval of $370,847.00 in tax increment assistance from the South Billings Boulevard Urban Renewal District (SBBURD) paid to Northridge Assets, LLC for public improvements associated with the development of a Comfort Suites hotel located at 4910 Southgate Drive. Northridge Assets, LLC will be constructing an 84-room hotel building on a parcel that was previously a parking lot and part of a miniature golf course located near the corner of King Avenue East and Southgate Drive. Northridge Assets, LLC is investing approximately $7.9 million into this project.
The construction of this project will provide new investment in the SBBURD. The project is consistent with the South Billings Master Plan and the City’s Infill Policy. This project is a significant part of the continued private sector investment in and development of the area. This project is the result of a recruitment effort coupled with the incentive programs available from the SBURA and the City of Billings.
Tax increment finance (TIF) funds will be used to offset the cost of public improvements required of the developer to include public utilities improvements, demolition and abatement costs, landscaping, sidewalk, curb, gutter, and drive approach. Attached is an information packet providing a detailed analysis of the project. The terms for the expenditure of these funds are formalized in the attached Development Agreement.
The application for TIF Assistance was approved by the SBURA Board of Directors on September 1, in the amount of $370,847.00. This amount is to be paid in four equal annual installments of $92,711.75. The initial payment and subsequent payments will be made on June 1st of each year following the issuance of a certificate of occupancy.
The construction of this project will provide new investment in the SBBURD. The project is consistent with the South Billings Master Plan and the City’s Infill Policy. This project is a significant part of the continued private sector investment in and development of the area. This project is the result of a recruitment effort coupled with the incentive programs available from the SBURA and the City of Billings.
Tax increment finance (TIF) funds will be used to offset the cost of public improvements required of the developer to include public utilities improvements, demolition and abatement costs, landscaping, sidewalk, curb, gutter, and drive approach. Attached is an information packet providing a detailed analysis of the project. The terms for the expenditure of these funds are formalized in the attached Development Agreement.
The application for TIF Assistance was approved by the SBURA Board of Directors on September 1, in the amount of $370,847.00. This amount is to be paid in four equal annual installments of $92,711.75. The initial payment and subsequent payments will be made on June 1st of each year following the issuance of a certificate of occupancy.
ALTERNATIVES ANALYZED
The City Council may either approve or deny the recommendation from the SBURA on the expenditure of these funds.
FINANCIAL IMPACT
The Development Agreement specifies a total incentive of $370,847.00 to be paid in four equal installments of $92,711.75 to Northridge Assets, LLC as part of the SBURA TIF Application Program. There will be sufficient funds budgeted in the FY16-17 SBBURD budget for payment of this development incentive.
RECOMMENDATION
The South Billings Urban Renewal Association Board of Directors recommends approval of installment payments totaling $370,847.00 from the South Billings Boulevard Urban Renewal District tax increment district funds to assist Northridge Assets, LLC with this redevelopment project.