The Downtown Billings Partnership (DBP) Board has reviewed this TIF application and recommends the City Council approve up to a maximum reimbursement of $420,000 in two installments of $210,000 per fiscal year, starting in the fiscal year following the year in which the project is completed, from Downtown Urban Renewal tax increment finance district funds to the Montana Rescue Mission. Actual reimbursement will be based upon 100% of the actual costs incurred for qualified expenses for demolition and renovation of the property at 2822 Minnesota Avenue, subject to the following conditions:

1. The Applicant shall sign a development contract with the City of Billings and DBP within 150 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.
4. Prior to disbursement of funds, the MRM's Women's Shelter property at 2520 1st Avenue North must be sold to a privately owned, tax paying entity.

The DBP staff received and reviewed the Montana Rescue Mission (MRM) TIF Application starting in January 2021. The applicant presented the application to the DBP Development Committee on February 11 and a tour of the property was conducted with DBP Board and staff members on February 18. It was then reviewed and recommended by the DBP Development Committee on March 11 and the full DBP Board made its recommendation to City Council on March 26 (See DBP Meeting Minutes attached).

MRM is requesting TIFD assistance in the amount of $1.5M dollars on a 5:1 matching basis to help complete development of a $12 million unified campus for its operations and services. MRM's private investment for the project is $10.5M, which includes federal low-income housing tax credits and private fundraising. The total project will cost $12M and Table 1 below shows a breakdown of TIF eligible expenses and privately funded expenses. Following a lengthy extensive review of the program goals, the proposal’s merits, the projected funds available, and the MRM's desire for short term disbursement, the Downtown Billings Partnership Board is recommending a grant allocation of $420,000 toward the project to be paid in two equal consecutive installments following completion of the project. This total recommended award aligns with the City's TIF Policy recommendation of a 5:1 private to public investment (the ratio is 4% or 24:1). This project also could be considered a non-profit application from MRM. If approved, this TIF assistance request will be subject to available Fund 203 cash and will only be applied to qualified expenditures including exterior restoration, foundational/structural improvements, Crime Prevention Through Environmental Design (CPTED) elements within landscaping, lighting and streetscape improvements.

Table 1

Eligible TIF expenses:	Privately funded expenses
Exterior improvements: $782,742 Exterior sitework: $797,848 Structural upgrades: $967,389 Subtotal: $2,547,979	East building interior improvements Middle building interior improvements West building interior improvements Building 21 interior improvements Subtotal: $9,458,062

The Development Committee and Board were supportive of the project and found the application was a very strong match for accessing urban renewal funds because:

• Existing businesses and the surrounding neighborhood on Minnesota Avenue will benefit from improved safety and security, the re-occupying and rehabilitating of an old historic building in Downtown Billings will further stabilize downtown properties, and helping provide needed services for our homeless and very low income residents in the community is a critical need.
• The qualified expenses are related to exterior restoration, foundational/structural improvements, and Crime Prevention Through Environmental Design (CPTED) with landscaping, lighting, and streetscape improvements.
• 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 2 below and attachments).

  Table 2

Qualified Improvements	DBA Strategic Plan	City TIF Policy	Urban Renewal Plan	Montana Code Annotated
Exterior restoration Foundational/structural improvements Crime Prevention Through Environmental Design (CPTED) through landscaping, lighting and street scape improvements	Strong Downtown Identity –P.13 Vibrant &Connected Downtown– P.13 Diverse Economic Engine -P.13 Downtown Housing -p. 16	Permitted uses of TIF Funds: Private infrastructure with Public Benefit(Facades, Windows, –P.2 Financial Assistance Through TIF– P.2	Business Programs &Projects –P.54 Infrastructure Improvements–P.55 Crime Prevention and Public Safety -P.55	7-15-4288

 

The Montana Rescue Mission (MRM) is embarking on a project to create a Unified Campus for its operations and services. This project will encompass several buildings on Minnesota Avenue; some of which have been operational but not as optimal as they can be while other properties have been underutilized and in dire need of revitalization. This project involves properties between South 29th St and South 28th St (west to east), as well as Minnesota Ave and 1st Ave South (north to south). This effort will streamline MRM’s services in addition to contributing to the momentum of redeveloping and reactivating Minnesota Avenue. This new campus is a holistic approach to combat homelessness and guide vulnerable populations through the challenges of being re-established in the community.

The plan dictates releasing the Women’s Shelter building on 1st Avenue North from MRM's ownership and consolidating all operations within the new campus. The new space will offer more privacy for its tenants, increase capacity, and offer low-income housing. Low-income tenants are still expected to meet the conditions associated with low-income housing requirements, and are subject to availability of units. This campus will also offer an outdoor green space, car and bike parking, playground and pet area, on-site daycare, vocational training, library lounge, exercise facility, community auditorium, medical clinic, computer lab, class and office spaces, and a barber/beauty shop.

By reinvigorating this existing space as well as releasing the Women’s Shelter building back into a tax-paying entity, this project addresses many of the goals of the Downtown Billings Strategic Plan and Urban Renewal Plan, such as enhancing the pedestrian experience, contributing to public safety, activating vacant spaces, and providing natural surveillance. Additionally, this project uses existing infrastructure and resources to restore health and vitality for the benefit of downtown life and the surrounding neighborhood.

The DBP Board in its recommendation is supporting less than the original requested amount after consideration of the District's program goals, the proposal’s merits, the projected funds available in the Downtown TIF Budget in the next several years, and MRM's desire for short term disbursement of funds. The recommendation for a total of $420,000 in qualified expenses is well below the City TIF Policy's recommended ratio of 5:1 private investment to public investment given the project's total estimated $12 million cost. The DBP Development Committee and the DBP Board both support this application request, recognizing this project will make a significant commitment and investment in Downtown Billings, anchor and revitalize a significant portion of Minnesota Avenue, make the area safer, while also providing critical services 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 recommendation is for up to a maximum of $420,000 to be reimbursed to the Montana Rescue Mission for the identified building remodel work (See TIF Application Attachment). The estimated total project cost is $12 million, making the private to public investment ratio for this project 24:1. The funds are payable per the conditions of approval outlined above in the DBP recommendation and pending satisfactory submission of all paid invoices showing actual cost incurred for the project. This project is proposed to be reimbursed in two phases over several fiscal years, starting the fiscal year after the project is completed. Currently, the project is estimated for completion in 2023. If approved, payments will be incorporated into future year budgets.