Regular 5.
Regular City Council Meeting
- Meeting Date:
- 10/24/2016
- TITLE
- Tax Increment Financing Grant up to $350,000 for St. Vincent DePaul Building Improvements
- PRESENTED BY:
- Bruce McCandless
- Department:
- City Hall Administration
Presentation:
PROBLEM/ISSUE STATEMENT
The Downtown Billings Partnership (DBP) Board recommends that the City Council approve a grant of up to $350,000 for the Society of St. Vincent DePaul (St. V). The grant will reimburse St. V for interior construction and equipment in a building that will replace the current charity office, located at 2610 Minnesota Avenue. The grant would come from tax increment funds (TIF) collected in the Expanded N. 27th Street Urban Renewal Area.
ALTERNATIVES ANALYZED
City Council may:
- Approve the recommendation and grant up to $350,000 of tax increment; or,
- Approve a smaller grant; or
- Not approve the grant request. Testimony at the October 3 work session indicated that St. V may purchase the building even without the TIF assistance, but programming will be more limited.
FINANCIAL IMPACT
The FY 2017 Expanded N. 27th Street Urban Renewal Area budget is $3,147,210. Subtracting the commitments that have been made to other projects should leave approximately $4,210,761 of cash in the fund at the end of FY 2017 (June 30). St. V will be required to submit paid invoices and lien releases before City Finance will reimburse the applicant.
BACKGROUND
The City of Billings has a contract with the Downtown Billings Partnership (DBP) to administer the TIF provisions of the N. 27th Street Urban Renewal Area (URA). That contract allows the DBP to propose downtown improvement programs and projects that meet State law requirements and drive or complement private property redevelopment. If the City Council approves a grant program, such as for signage or design assistance, the DBP can obligate any amount of money, up to the program's budget limit. The City Council must approve grants over $50,000 for any individual property or to establish a new program.
The Society of St. Vincent DePaul Charity Office (St. V) is located at 2610 Montana Avenue. St. V intends to sell the building and move its charity office to what is known as the "Crane" building, located on 1st Avenue South and South 30th Street. The building purchase price is expected to be approximately $1 million and St. V. plans to use property sale proceeds and fundraising to purchase it. St. V is requesting assistance of up to $350,000 for the interior build-out that will construct offices, a service kitchen and equipment. The DBP Board reviewed the request and is recommending that the City Council approve the grant with a condition that the building purchase and build-out be completed by the end of 2016.
The Society of St. Vincent DePaul Charity Office (St. V) is located at 2610 Montana Avenue. St. V intends to sell the building and move its charity office to what is known as the "Crane" building, located on 1st Avenue South and South 30th Street. The building purchase price is expected to be approximately $1 million and St. V. plans to use property sale proceeds and fundraising to purchase it. St. V is requesting assistance of up to $350,000 for the interior build-out that will construct offices, a service kitchen and equipment. The DBP Board reviewed the request and is recommending that the City Council approve the grant with a condition that the building purchase and build-out be completed by the end of 2016.