The Downtown Billings Partnership (DBP) Board has reviewed this TIF application and recommends the City Council approve up to a maximum reimbursement of $181,774, 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 Billings Community Foundation. Actual reimbursement will be based upon 100% of the actual costs incurred for qualified expenses for renovation of the property at 404 North 30th Street, 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 Billings Community Foundation (BCF) TIF Application starting in April 2021. The applicant presented the application to the DBP Development Committee on May 21 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).

BCF requested TIFD assistance in the amount of $202,713 dollars to help complete development of its estimated $1 million renovation to its newly acquired property at 404 North 30th Street. Richard Crowe built a home at the site in 1882 and resided in it until the 1980s. The property was then purchased by Mary Ann Andrews and occupied as the George Henry’s Restaurant for over 30 years. Following the retirement of the Andrews, the building continued as a restaurant and was home to Benson’s and Commons 1882 until July 2019. BCF's private investment is $1,013,566, which includes cash, equity, and a bank loan. The reported total project cost is $1,216,279, which includes the purchase price of the building at $685,000. A recent appraisal of the property valued the building at $650,000, $35,000 lower than the purchase price.The DBP Development Committee recommended and the DBP Board agreed to use the appraised value of the building instead of the purchase price, and to excluding FF&E expenses (as non-permanent improvements). These values lowered the project total to $1,088,466, and resulted in the DBP Board's recommendation to Council of a 5:1 private to public investment grant ratio of $181,774, aligning with the City's TIF Policy recommendation of a 5:1 private to public investment. This project is also considered a non-profit application. If approved, this TIF assistance request will be subject to available Fund 203 cash and will only be applied to qualified expenditures as specified in the DBP Recommendation attached to this memo. Improvements include installation of ADA restrooms and an ADA accessible lift to the second floor, sewer line repairs, parking and sidewalk resurfacing, landscaping, lighting and streetscape improvements.

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:

• The renovation and restoration project meets the 5:1 private to public matching fund requirements of the DBP Large Project Incentive Grant criteria and address blight remediation (MCA 7-15-4282 through 7-15-4294 and Ordinance 12-5590) through the transformation and adaptive reuse of a vacant historic property.
• The projects further enhance the vibrancy of Downtown Billings through increased public activities, enhanced pedestrian experiences on the corner of North 30th and 4th Avenue, public green space and improved public safety. BCF will apply for a CPTED security survey to ensure the green spaces and public areas meet CPTED principles to ensure neighborhood safety for BCF clients, volunteers, employees and pedestrians.
• 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 site work and landscaping Public area improvements for ADA accessibility Sewer connection repairs 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	Permitted uses of TIF Funds: Private infrastructure with Public Benefit and Public infrastructure (parking, sidewalks, sewer lines, utility connections, ADA access) –P.2 Financial Assistance Through TIF– (grants may benefit non-profit businesses) 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)

 
The Billings Community Foundation (BCF) has been a local philanthropy and charitable giving organization in Billings and the Greater Yellowstone County since 2007. Their service encompasses south-central and south-eastern Montana in Yellowstone, Musselshell, Rosebud, Custer, Treasure, Bighorn, Carbon, Stillwater, and Fergus County. Since its inception, BCF has distributed over $3.5M in grants and distributions for the support of charitable organizations and projects throughout the region. In addition to grant making activities, BCF partners with area nonprofits to provide capacity building workshops, assists clients utilizing the MT Charitable Income Tax Credit, establishes endowments, manages Donor Advised Funds, creates Community Funds, and offers consultations upon request. The new facility for BCF will allow it to scale proven initiatives in an innovative and collaborative space designed to meet the needs of the philanthropic and non-profit sectors. BCF will revitalize a historic landmark, enhancing vibrancy and economic investment in Downtown Billings through a centralized location.

The DBP Board in its recommendation is supporting less than the original requested amount after consideration of the property value per the appraisal. 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 a significant corner in downtown Billings at North 30th and 4th Avenue North, while also providing a very beneficial service 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 $181,774 to be reimbursed to the Billings Community Foundation for the identified building remodel work (See DBP Funding Recommendation attachment). The estimated total project cost is about $1 million, making the private to public investment ratio for this project 5:1. 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 starting the fiscal year after the project is completed. Currently, the project is estimated for completion in late 2021 (FY22). If approved, payments will be incorporated into future year budgets, the earliest is expected to be FY23.