The Downtown Billings Partnership (DBP) has worked for nearly two years with developers of a proposed One Big Sky Center (OBSC) project. The redevelopment site is located north of 1st Avenue North and on both sides of N. 29th Street. The developers have requested that the City of Billings approve a predevelopment Memorandum of Understanding (MOU) that designates them as the exclusive developers of the site. This allows the developers to market the project and obtain financing for it. It is the Council's first official opportunity to endorse the project. It contains no concrete commitments or responsibilities, but it authorizes staff to work with the developers to produce an acceptable development agreement by June 30, 2017. The MOU does not prevent the City or DBP from working with and assisting owners of property not located within the proposed project boundaries. Springsted Inc., the City's bond financial advisor, is performing a due diligence review of the developers and the proposed project. The firm's Chairman, David McGillivray, will attend the October 24 Council meeting and will report the results of that analysis.    

City Council may:

• Approve the Memorandum of Understanding (MOU), or;
• Amend and approve the MOU, or;
• Disapprove the MOU. 

Approving the MOU will allow City staff, the developers and the City's legal and financial consultants to work on a development agreement that should be completed by June 30, 2017. Unilaterally amending or disapproving the MOU will delay a development agreement and potentially terminate the proposed project.     

The Memorandum of Understanding (MOU) has no immediate financial impact. It requires the City staff and its consultants to work on a development agreement for the proposed OBSC redevelopment project. There are no out-of-pocket expenses for City or DBP staff, but the legal and financial consultants will charge the City for their time spent on the project, whether it proceeds or is terminated.

Staff recommends that the City Council approve the Memorandum of Understanding with Montdevco II for the proposed One Big Sky Center downtown redevelopment project.