Consent 1.C.
Regular City Council Meeting
- Meeting Date:
- 01/22/2018
- TITLE
- EBURD Tax Increment Assistance - Slow River, LLC - Demolition and Redevelopment, 119-123 North 19th Street
- PRESENTED BY:
- Wyeth Friday
- Department:
- Planning & Community Services
Presentation:
No
PROBLEM/ISSUE STATEMENT
The Billings Industrial Revitalization District (BIRD) Board of Directors is presenting this recommendation to the City Council for allocating $45,356.97 in tax increment finance district funds (TIFD) from the East Billings Urban Renewal District (EBURD) to Slow River, LLC. The property is 119-123 North 19th Street and funds would be used to demolish a house and redevelopment costs associated with permitting new construction, frontage improvements, utilities and storm water management (See Slow River, LLC TIFD Application Attachment). If approved, the TIFD funds will reimburse the applicant for the described costs for the redevelopment of the property for two, duplex units and four detached single-family units. The applicant plans to begin construction in the spring of 2018. The BIRD Board of Directors voted to support funding of this application at its meeting on November 14, 2017, under its authority per the Memorandum of Understanding between the City of Billings, Big Sky Economic Development, and the BIRD, Inc. approved by the City Council in February 2014.
ALTERNATIVES ANALYZED
↵The City Council is the final authority in disbursing TIFD funding. The City Council may:
- Approve the recommendation from the BIRD Board for the expenditure of these TIFD funds, or;
- Disapprove the recommendation from the BIRD Board for the expenditure of these TIFD funds.
FINANCIAL IMPACT
The request is for a total of $45,356.97 to be paid in one payment to Slow River, LLC, for the identified work (See Slow River TIFD Application Attachment). The funds are payable when the applicant completes the entire redevelopment project. There is funding in the FY17-18 EBURD project budget for payment of TIFD assistance. This project is to start in the spring of 2018 and is likely to be completed in FY19 (after June 30, 2018) under a new project budget cycle. The current total cash balance for the EBURD is about $1.4 million.
RECOMMENDATION
The Billings Industrial Revitalization District (BIRD) Board of Directors recommends that the City Council approve a reimbursement totaling $45,356.97 from the EBURD tax increment finance district funds to Slow River, LLC.