The Downtown Billings Partnership (DBP) Board of Directors recommends the City Council approve a reimbursement up to $1,570 from the Downtown Urban Renewal tax increment finance district funds to Bethany Joy Pilates for its new sign installation at 2202 1st Avenue North, subject to the following conditions:

1. The applicant shall receive a reimbursement grant not to exceed $1,570 as long as the private investment is of equal or greater value;
2. This TIF reimbursement is the maximum that can be received pending satisfactory submission of all paid invoices showing the completion of expenditures related to this project; and
3. If funds are not available from the Downtown Urban Renewal District at the time reimbursement is requested, reimbursement can be carried over to the next fiscal year.

The DBP staff received and reviewed this TIF Application in April. It was then reviewed and recommended by the DBP Development Committee on May 14, 2020 and the full DBP Board on May 22, 2020 (See DBP Meeting Minutes attached). The Development Committee and Board verified several issues during review, including: That the bid for the sign work was the lowest bid the applicant had received; That the sign structure would work for future tenants, and; That the sign addresses both pedestrian and vehicle traffic.

The Bethany Joy Pilates studio opened in March in a portion of the former Toad n Willow store at 2202 1st Ave North. The building had sat vacant and unused for several years. The new sign will advertise the building is now occupied and help customers with wayfinding to the Studio. The establishment of the Pilates Studio and this sign at this location also should help contribute to the recruitment of a second potential tenant into the building. If approved, the TIF funds will reimburse the applicant for part of the costs to design, permit, fabricate and install the sign.

The DBP has established a Sign Incentive Grant program to provide financial and practical assistance to design, fabricate, and install signage in downtown Billings, clearly identifying the location and entrance of a business, promoting the service or merchandise within, and attracting and informing customers. The program aligns with elements/goals of the DBA Strategic Plan (may be viewed through this link https://downtownbillings.com/about/about-the-dba/), City TIF Policy, MCA and the North 27th Street District Urban Renewal Plan (See table below and attachments) For example, the adopted Urban Renewal Plan for the North 27th Street District, contemplated TIF funding assistance for business retention and recruitment in its Business Programs and Projects section.
 

Item	DBA Strategic Plan	Urban Renewal Plan	City TIF Policy	Montana Code Annotated
Sign fabrication & installation	Strong Downtown Identity – P.15 Vibrant & Connected Downtown – P.15	Business Programs & Projects – P.54 Crime Prevention & Public Safety – P.55	Permitted uses of TIF Funds: Private infrastructure with Public Benefit (building facades) – P.2 Financial Assistance Through TIF – P.2	7-15-4233   7-15-4288

This application from Bethany Joy Pilates is the first request under this new program and sign incentive funding is available to developers, owners, and tenants to encourage a higher level of quality, design and wayfinding in the downtown environment (See the Sign Incentive Grant Application and sign drawings for details (attached). Funding is available for design, permits, fabrication, and installation of signs, banners, or awnings at a 1:1 matching rate up to a maximum of a $3,000 match amount. The DBP is bringing this program to the City Council for consideration through this first application and has modeled it like the Crime Prevention Through Environmental Design (CPTED) program initiated with the Council last fall. Like the CPTED program, this program uses a 1:1 match ratio for these small TIF fund grants and not the 5:1 ratio outlined in the City TIF Policy.

City Council may:

• Approve the recommendation from the DBP Board for the expenditure of these TIF funds consistent with some elements/goals of the DBA Strategic Plan, North 27th Street Urban Renewal Plan, City TIF Policy and MCA, or;
• Modify the recommendation from the DBP Board for the expenditure of these TIF funds before taking action, or;
• Disapprove the recommendation from the DBP Board for the expenditure of these TIF funds. If the Council chooses not to approve this TIF application, specific reasoning for the denial is helpful to provide further direction to the DBP Board and staff, and City staff for future applications.
   

The request is for up to $1,570 to be reimbursed to Bethany Joy Pilates for the identified signage work (See TIF Application Attachment). The estimated total project cost is $3,140. An original estimate of $7,582.41 (See original application attached) was updated to this new total project cost with a new bid since the DBP Board Meeting. Staff will provide further background on the new bid at the Council meeting. The private to public investment ratio for this project is 1:1. The threshold for this signage program per the DBP Board is 1:1. The funds are payable pending satisfactory submission of all paid invoices showing actual cost incurred for the project. A budget amendment may be needed. If funds are available, existing cash will be used to issue a reimbursement.