The One Big Sky (OBS) project was introduced to the City Council in October, 2016.  Project planning has proceeded and currently, Hammes Co./Landmark LLC has submitted its Phase 1 concept development plan and proposes to proceed to Phase 2 and 3 project planning, which requires a local cost share of $675,000.  A Memorandum of Understanding (MOU) to fund the planning work has been developed by several local partners and Council is being asked to consider and approve it, including a $100,000 General Fund contribution and a line of credit that uses a Tax Increment Finance (TIF) purchased building as security.   The planning phases and local strategy partner responsibilities, schedule and costs are attached.  The draft MOU will be delivered to Council and posted on the City's website no later than Friday, April 6. 

City Council may:

• Approve the MOU, the $100,000 General Fund contribution and the BSED/DBP line of credit agreement; or,
• Propose changes to the MOU or either of the funding elements; or,
• Not approve the MOU

The General Fund contribution of $100,000 is available from the un-obligated Fund balance,  but it is not appropriated in the FY 2018 budget.  The Council could approve a FY 18 budget amendment or direct staff to include it in the FY 2019 budget which is scheduled for adoption in June, 2018.  The Yesteryear's building was purchased for $830,000, so the line of credit is about one-half (1/2) of the original value.  The current value is unknown but would be based on its income generation which is probably lower than when the DBP purchased it in May 2016. 

The One Big Sky (OBS) project was introduced to the City Council in October, 2016 and Council approved a pre-development Memorandum of Understanding (MOU) with MontDevCo in November, 2016.  Council approved two extensions and the MOU has expired.  The Hammes Co./Landmark LLC joined the development team in July 2017 and introduced its Phase 1 concept development plan to Council in December, 2017.  The company followed that with a proposed term sheet for the Phase 2 and 3 development plan.The terms include supplying $675,000 for the local cost share for the planning work.  Landmark plans to spend approximately $1,200,000 as their share of the project planning.
 
Big Sky Economic Development (BSED) took the lead position to organize a local partner response to the term sheet.  The local partners are proposed to be BSED, the City of Billings, the Billings Chamber of Commerce, the Tourism Business Improvement District (TBID) and the Downtown Billings Partnership, Inc. (DBP). The partners have been negotiating an MOU to supply the $675,000 local investment in the planning work and the Council is being asked to consider approving it.
 
Two major elements in the MOU funding proposal are a City of Billings $100,000 General Fund contribution and a BSED/DBP $400,000 line of credit that will be secured by the Yesteryears Building, 102 N. 29th Street,  The Council approved DBP's request to purchase the building in May 2016.  The Council will decide at this meeting whether to approve the General Fund and line of credit elements as part of the MOU.  If the City Council approves the MOU, including the General Fund and line of credit agreement, Landmark and BSED will negotiate a development planning agreement that outlines each parties' responsibilities, a schedule for the planning work and how the planning work will be funded..