The Billings Industrial Revitalization District (BIRD) Board of Directors recommends the City Council approve up to a maximum reimbursement of $99,776 from the EBURD tax increment finance district funds to Empire Entrepreneurs to abate asbestos and demolish the hotel at 1403 1st Avenue North (See BIRD Board Recommendation Attached to this Memo).

The BIRD is submitting a request for TIF fund assistance on behalf Empire Entrepreneurs for a project in the East Billings Urban Renewal District.The project involves the abatement, demolition and clean-up of the property containing the Lazy KT motel. The property has housed a population of people that have continually challenged our law enforcement and required extensive resources to cover the services at that location. Between July 2019 and June 2021, there were 338 calls for law enforcement service to this property. The calls ranged from suspicious activity to assaults and shootings (See attached call for service list). City Code Enforcement over the years also has had complaints on the property ranging from nuisance weeds to junk vehicles to operating a campground without proper licensure.

The total cost of abatement and demolition of the property is $98,776. The BIRD Board has been aware of this project as it has developed. The Board voted to recommend approval of this application at its meeting on Tuesday, July 13, following its annual EBURD meeting to approve TIF reimbursement for the project. The Billings Industrial Revitalization District (BIRD) Board of Directors is presenting this recommendation to the City Council for allocating $98,776 in tax increment finance funds (TIF) from the East Billings Urban Renewal District (EBURD) to provide financial assistance to Empire Entrepreneurs for complete asbestos abatement and demolition of the structure on the property.  The applicant purchased the property as a solution to address the ongoing blight and criminal activity that it was generating in the EBURD neighborhood and the serious negative impacts the property was having on surrounding properties. The applicant is requesting TIF funding so that the site may be cleared for future redevelopment.

The BIRD Board supports fully funding the asbestos abatement and demolition costs for the property with TIF funds and varying from the City's TIF Policy recommended ratio of 5 to 1 for the following reasons:

• The property owner purchased the property for the purpose of eliminating a blighted property that has consumed significant public resources in law enforcement and other services because of serious criminal activity at the property.
• The property owner took on significant expense and risk by acquiring the property with the intent to get it demolished as soon as possible to avoid further vandalism and liability to the owners and surrounding property if the building remained standing and vacant.

The expenses for the asbestos abatement and demolition work recommended by the BIRD Board are eligible as per Section 7-15-4288 (2) (See BIRD Board Recommendation attached) and Section 7-15-4233 (n). The project also is in alignment with the EBURD Urban Renewal Plan and the EBURD Master Plan's principles of fostering economic growth and encouraging community collaboration around public safety.

This process and action of the BIRD is under its authority per the Memorandum of Understanding between the City of Billings, Big Sky Economic Development, and the BIRD, Inc. approved by the City Council on May 13, 2019. 

 

The City Council is the final authority in disbursing TIF funding. This proposed use of TIF funds conforms to the City's TIF Policy and aligns with the EBURD Urban Renewal Plan and Montana Code for urban renewal to address blight remdiation through projects and programs.

The City Council may:

• Approve the recommendation from the BIRD Board for the expenditure of these TIF funds, or;
• Modify and approve the recommendation from the BIRD Board for the expenditure of these TIF funds, or;
• Disapprove of the recommendation from the BIRD Board for the expenditure of these TIF funds

The request is for a total of up to a maximum of $98,776 to be reimbursed to Empire Entrepreneurs, owners of 1403 1st Avenue North, only upon completion of the work and submittal of the invoices for the cost incurred. While the EBURD budget for projects in FY22 has about $250,000 available to cover this payment of TIF assistance, a budget amendment may need to be completed for this project if it is approved by the City Council.