The Downtown Billings Partnership, Inc. (DBP) is proposing an agreement with the City of Billings to manage projects in the Expanded N. 27th Street Urban Renewal and Tax Increment District (TID) for FY 2010-2011. The management agreement outlines the proposed work plan, compensation and reporting. Staff recommends that the City Council consider the agreement at this time because the expenses are contained in the proposed FY 2011 budget. 

Montana’s Urban Renewal Act allows cities to administer urban renewal areas and TID by:
• contracting with public or private agencies
• assigning a City department to the tasks, or
• forming an urban renewal authority

The DBP is requesting that the City appropriate $172,000 for the FY 2010-2011 management contract. The Expanded N. 27th Street TID was created in 2005 and expanded in 2006 and 2008. It has produced a positive increment since its creation and the Fund should contain at least $524,000 by the end of the fiscal year. If Council approves the management agreement, about $118,000 should be available for new projects in FY 2011, $28,000 to complete 2010 projects and the DBP is planning to carry forward about $200,000.  The amount of  increment may be higher or lower than predicted depending on the outcome of property reappraisal appeals.

Staff recommends that the City Council approve a FY 2010-2011 management agreement with the Downtown Billings Partnership, Inc. for up to $172,000 to manage the Expanded N. 27th Street Urban Renewal Area/Tax Increment District.