The Downtown Billings Partnership (DBP) Board has reviewed this TIF application and recommends the City Council approve up to a maximum reimbursement of $113,997, 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 Monte Bar and Casino. Actual reimbursement will be based upon 100% of the actual costs incurred for qualified expenses for demolition and renovation of the property at 2824 1st Avenue North, 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

The DBP staff received and reviewed the Monte TIF Application starting in April 2021. The applicant presented the application to the DBP Development Committee on May 13 and the Committee completed its review and made its recommendation to the DBP Board. The full DBP Board made its recommendation to City Council on June 18 (See DBP Meeting Minutes attached).

The Monte is requesting TIFD assistance in the amount of $113,997 dollars on a 5:1 matching basis. Its private investment is $784,968, which includes personal cash and two loans. The total project will cost $898,965 and a breakdown of the eligible expenses is provided in the DBP Recommendation attached to this memo. This total recommended award aligns with the City's TIF Policy recommendation of a 5:1 private to public investment. If approved, this TIF assistance request will be subject to available Fund 203 cash and will only be applied to qualified expenditures such as architectural/engineering/permits/appraisals, concrete demo/removal/replacement, structural steel, removal/replacement of stucco and membrane roofing, doors/windows, HVAC, foundational framing, and electrical.

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

• Existing businesses and the surrounding neighborhood on 1st Avenue North and North 29th will benefit from improved safety and security with better visibility inside and outside the building, the centralized entrance at the corner, added landscaping and lighting, and rehabilitating of an older building in Downtown Billings.
• The qualified expenses are related to architectural/engineering/permits, concrete demo/removal/replacement, structural steel, streetscape improvements, removal/replacement of stucco and membrane roofing, doors/windows, HVAC, foundational framing, and electrical.
• 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 1 below and attachments).

 Table 1

Qualified Improvements	DBA Strategic Plan	City TIF Policy	Urban Renewal Plan	Montana Code Annotated
Exterior facade restoration/rehabilitation Foundational/structural improvements & upgrades Crime Prevention Through Environmental Design (CPTED) Energy efficiency	Strong Downtown Identity –P.13 Vibrant &Connected Downtown– P.13 Diverse Economic Engine -P.13	Permitted uses of TIF Funds: Private infrastructure with Public Benefit (Facades, Windows, doors, sidewalk, exterior lighting –P.2 Financial Assistance Through TIF– P.2	Business Programs &Projects –P.54 Infrastructure Improvements–P.55 Crime Prevention and Public Safety -P.55	7-15-4233 (i)(m)(n) 7-15-4288 (2)(4)(12)

 
The Monte Bar and Casino is one of downtown Billings’ oldest bars and its largest casino. It is initiating a remodel project of its exterior to make significant improvements in terms of functionality, appearance, and interface with the public streets. The project includes complete removal of the outdated, low-hanging brown awning and the stone/deteriorating stucco cladding at the primary facades on 1st Ave N and N 29th Street. These elements will be replaced with materials to emulate the appearance of the historic building character in the 1930s and 40s. The existing storefront with dark tinted glass will also be removed and replaced with a new assembly with clear glazing that will allow greater transparency into and out of the building, all of which will improve the building’s connection with the streetscapes and safety. The proposed renovation will also reintroduce the historic chamfered corner entry at N 29th Street and add new pedestrian-oriented signage and lighting elements. This reconfiguration alters circulation into the building and will allow for the removal of the dysfunctional entrance at the south end of N 29th Street facade by the addition of a new glass storefront. This new corner entry will embrace and complement the City’s efforts in implementing two-way traffic at this corner and contribute to the revitalization of N 29th Street. The addition of street trees on both frontages and additional planters will make the frontages more welcoming and improve the pedestrian areas.

The secondary east facing alley wall will also be repaired and updated. A large public art mural is planned to be installed at this location after facade repairs are completed. It will be designed and painted in collaboration with local artists and it will be done in memory of a close friend and long-time patron of The Monte. This mural will be visible to west bound vehicles and pedestrians on 1st Ave N, further adding character to this overlooking part of downtown. Exterior lighting upgrades to the alley and rear parking lot area are also planned in order to improve public safety.

The DBP Development Committee and the DBP Board both support this application request, recognizing this project will make a commitment and investment in Downtown Billings, revitalize a significant corner of a busy intersection in the downtown core, and also make the area safer.

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 $113,997 to be reimbursed to the Monte Bar and Casino for the identified building remodel work (See DBP Recommendation attached to this memo). The estimated total project cost is $898,965, making the private to public investment ratio for this project about 7:1. 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. Currently, the project is estimated for completion in late 2021 (FY22). If approved, payments will be incorporated into the FY23 budget.