In 1988 the City of Billings loaned the Billings Area Chamber of Commerce $410,000 to assist with constructing the Chamber's new office building at 815 S. 27th Street.  The Promissory Note was secured by a Trust Indenture.  The original Trust Indenture was amended several times over the ensuing twenty years.  The Chamber recently requested another change.  The multiple amendments are confusing and, in the event of a property sale or other transaction, would cause problems with an accurate title search.  The Chamber and City Legal staff agree that the original Trust Indenture should be reconveyed and a new Trust Indenture should be executed by the Chamber and accepted by the City.  The City Council is being asked to reconvey the existing trust indenture and to approve and accept a new Trust Indenture.

The Chamber of Commerce requested relatively minor changes to the existing Trust Indenture.  The City Council could:

• Approve the requested changes to the existing Trust Indenture;
• Disapprove the requested changes to the existing Trust Indenture; or
• Approve the staff recommended reconveyance of the existing Trust Indenture and approve a new Trust Indenture

This item's approval should not have a financial impact on the City of Billings.

Staff recommends that the City Council approve the reconveyance of the Trust Indenture to the Billings Area Chamber of Commerce and to approve and accept the new Trust Indenture. 

In 1988 the City of Billings loaned the Billings Area Chamber of Commerce $410,000 to assist with constructing the Chamber's new office building at 815 S. 27th Street. The Promissory Note was secured by a Trust Indenture. The original Trust Indenture was amended several times over the ensuing twenty years. The Chamber recently requested another change. The multiple amendments are confusing and, in the event of a property sale or other transaction, would cause problems with an accurate title search. The Chamber and City Legal staff agree that the original Trust Indenture should be reconveyed and a new Trust Indenture should be executed by the Chamber and accepted by the City. The City Council is being asked to reconvey the existing trust indenture and to approve and accept a new Trust Indenture.

In 1988 the City of Billings was actively engaged in the downtown Tax Increment District (TID).  The Chamber of Commerce wanted to construct a new operations center.  Through a complex set of transactions, the Chamber borrowed $410,000 from the City's TID revolving loan fund to assist construction of a new Chamber office and visitor center at 815 S. 27th Street, which is located in the former TID.  The City secured the loan with a Promissory Note and Trust Indenture.  The Chamber still owes almost $200,000 on the note and it is current with its payments.

Earlier this year, the Chamber requested that the City amend the Trust Indenture again.  The Chamber wants to submit reviewed annual financial statements instead of audited statements because it is less expensive.  It wants up to 120 days instead of 60 days after the end of the fiscal year to submit the reviewed statements.  Staff concurs with those requests.  The City requested that the new Trust Indenture substitute the Trustee since the original document designated former City Attorney Jim Tillotson as the Trustee.  The new document names current City Attorney Brent Brooks.  Finally, the new Trust Indenture incorporates all of the terms and conditions that were changed in the various amendments that were approved over the past 20 years.