The Downtown Billings Partnership Board has reviewed this TIF application and recommends the City Council approve up to a maximum reimbursement of $466,373 from Downtown Urban Renewal tax increment finance district funds to the Halsten Holdings, LLC (Burger Dive). Actual reimbursement will be based upon 100% of the actual costs incurred for demolition/renovation of the applicant's property at 2712 Minnesota Avenue, subject to the following conditions:

1. The Applicant shall sign a development contract with the City of Billings and DBP within 90 days of City Council’s approval.
2. This TIFD reimbursement is the maximum that can be received pending satisfactory submission of all paid invoices showing the completion of expenditures related to this project.
3. If funds are not available, reimbursement can be carried over to the next fiscal year.

The DBP staff received and reviewed this TIF Application in October. It was then reviewed and recommended by the DBP Development Committee on November 12 and the full DBP Board on November 20, 2020 (See DBP Meeting Minutes attached).

The Development Committee and Board verified/clarified several issues during review, including:

• That Board was comfortable including the building acquisition cost in the total project cost calculations for the possible TIF award, which made the proposal remain under the recommended 5:1 private to public investment ratio (the ratio including property acquisition is about 15%).
• The Development Committee and Board were very supportive of the project and found the application was a very strong match for accessing urban renewal funds because:

The application 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 in its Business Programs and Projects section.
 

Item	DBA Strategic Plan	Urban Renewal Plan	City TIF Policy	Montana Code Annotated
Exterior demo, lighting, facade & brick restoration, signage, windows, streetscape & landscaping, entrances & exits Interior demo, energy efficiency, electrical, plumbing, code, utilities	Strong Downtown Identity – P.15 Vibrant & Connected Downtown – P.15 Diverse Economic Engine - P. 13	Business Programs & Projects – P.54 Infrastructure Improvements (Entertainment Venues) – P.55	Permitted uses of TIF Funds: Private infrastructure with Public Benefit (Facades, Windows, – P.2 Financial Assistance Through TIF – P.2	7-15-4233 7-15-4288

The Burger Dive plans to revitalize the Western & Wheel Bars Building, which is located at 2712/2714 Minnesota Avenue, a key section of Minnesota Avenue in downtown Billings that has been vacant for several years. This project eliminates blight by rehabilitating four buildings that have come under serious disrepair, addressing concerns of dilapidation, unsanitary conditions, and a deteriorating site.

The Burger Dive is an award-winning and nationally known and reputable local gourmet burger restaurant that is looking to expand after 10 years at its present location on 27th Street. The new location will increase the seating capacity by 2 & ½ times, expand the kitchen, add a retail shop, outdoor dining area, “speakeasy-like” basement bar, and an event space. There will be commercial space for a tenant to offer more business or retail at the street level, and above the Burger Dive portion of the project, the old boarding house rooms will be re-purposed and combined into six new, energy efficient residential apartments. Two additional new apartments also will be built in a new, second-story addition above the old Wheel building making it a total of eight new apartments as part of the project. Overall, the project will fill four empty storefronts while increasing activity, visitation, and the aesthetic appeal of this area of downtown.

The Burger Dive is requesting TIF funds to reimburse it for improvements and modifications, including some demolition, building structural stabilization, infrastructure (water and sewer replacement/connections), safety and accessibility for the public, and exterior improvements including removing old stucco, repairing the brick, rehabilitating and improving existing windows, and restoring the overall historic character. The total reimbursement requested is $466,373. If the total value of cash invested ($3,119,497) and land and buildings ($292,000) are factored into the request, the private investment is 85% and the public investment is 15%, or about a 7 to 1 ratio. Even if the building acquisition is removed from the total project cost, bringing the project total to $2,831,497, the private investment remains at about 84% and public investment is about 16%, or about a 6:1 ratio. The DBP Development Committee and the DBP Board both fully supported this application request, recognizing this project will make a significant commitment and investment in Downtown Billings and transform another portion of Minnesota Avenue, making the area safer, more active and more valuable as an asset in the community.

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 a maximum of $466,373 to be reimbursed to the Burger Dive for qualified expenses identified, including building demolition, remodeling and exterior improvements (See TIF Application Attachment). The estimated total project cost is $2,831,497 (less building cost), making the private to public investment ratio for this project about 6:1. The funds are payable pending satisfactory submission of all paid invoices showing actual cost incurred for the project. The current FY21 project budget for the Downtown District is $310,501, so a budget amendment would be needed to cover this project if it were all reimbursed in FY21. The Downtown District has $1,343,295 in total available TIF funds in the FY21 Budget, so this project can be covered and $876,922 would be remaining for other projects or programs. If all three Downtown District projects being reviewed by the Council at this meeting were approved and expended in FY21, the Downtown District would have $131,217 remaining in its FY21 Budget.