In accordance with the Memorandum of Understanding entered into by the City, Big Sky Economic Development Authority (BSEDA) and the Billings Industrial Revitalization District (BIRD) on August 9, 2010, the BIRD is responsible for accepting and reviewing applications for Tax Increment Finance District (TIFD) funds in the East Billings Urban Renewal District (EBURD). City staff reviews the applications forwarded by the BIRD for statutory compliance and recommendations. After final review of the applications, the BIRD forwards the funding requests to City Council for approval. On October 12, 2010, the BIRD Board approved the following funding requests for Council’s consideration: $49,000 to complete a Zoning Overlay for the EBURD; $500 towards the preparation of the North Park Children’s Center Feasibility Study; and $3,972.50 towards public improvements resulting from the Taylor Car Wash development on 6th Avenue North. There is currently $297,041 of TIFD funds available for Fiscal Year 2011. Through prior agreement, $95,032 is obligated to First Interstate Bank. The remaining FY11 TIFD funds, less the three projects' costs, are projected to be $148,536.50.

The City Council may:
• Approve the BIRD recommendation of three projects in FY 2011. The BIRD would be able to expend funds for the three projects and their progress will be reported by the BIRD in its quarterly and annual reports to the City. Approval could also take the form of approving only one (1) or two (2) of the proposed projects.
• Disapprove the BIRD requests for three projects in FY 2011. The BIRD would not be able to expend funds for these proposed projects; it would retain the spending authority for other urban renewal projects and would need to request City Council approval when it identifies those other projects.

The East Billings Urban Renewal and Tax Increment District should receive $194,111 in tax year 2010/FY2011. Combined with the carryover of $102,930 from the previous year, less funds obligated to First Interstate Bank, $202,009 is available for project costs. There are sufficient funds available for the three projects with enough remaining balance to finance other urban renewal projects later in the year.

Staff recommends that City Council approve the BIRD requests for three (3) projects in the East Billings Urban Renewal District. The three projects are: $49,000 to complete a Zoning Overlay for the EBURD; $500 towards the preparation of the North Park Children’s Center Feasibility Study; and $3,972.50 towards public improvements resulting from the Taylor Car Wash development on 6th Avenue North.