The Downtown Billings Partnership (DBP) Board has re-reviewed this TIF application and recommends the City Council approve up to a maximum reimbursement of $98,518, 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 agreement with the City of Billings and DBP within 180 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

NOTE: The City Council first reviewed this application at its meeting on July 26 and a recommendation to award TIF funds failed due to a 5-5 tie vote of the Mayor and Council, with one Council member absent. There were concerns expressed by some Council Members that the applicant was a non-profit entity that would not contribute to the tax base of the District or City, and also that the existing building at 404 North 30th Street was not in need of any improvements. The DBP recommendation to the Council this time has been modified to focus even more specifically on public access and infrastructure needs to make the building accessible and usable by the public into the distant future. More information is provided in the Background section of this memo.

The Billings Community Foundation (BCF) submitted an application on April 15, 2021 to the DBP requesting TIF assistance to rehabilitate its recently acquired property located at 404 N30th Street. The application was vetted by staff and presented to the Development Committee on May 13, 2021. The Development Committee vetted the proposal further, reduced the requested amount, and drafted a recommendation for the Board. The recommendation was presented to the DBP Board on June 18, 2021 and the DBP Board made its recommendation to City Council. The proposal went before Council on July 26, 2021 where the recommendation failed due to a 5-5 tie vote. Following the Council meeting, the DBP staff followed up with the BCF, City staff and Council members, and determined it was important to revise the application, take it back to the DBP Board for consideration, and come back to Council. The DBP Board reconsidered this application at its meeting on August 27 and is forwarding a recommendation to City Council to award TIF assistance of up to a maximum of $98,518 for the project.

Application Changes - Original recommendation and revised recommendation:

Original Recommendation:

• BCF originally 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. BCF's private investment at that time was estimated at $1,088,466, which included cash, equity, and a bank loan (This estimate has been refined further as discussed below in the revised recommendation).
• This resulted in the DBP Board's first recommendation in July 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.
• Improvements in the original award recommendation included 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.

Revised Recommendation:

• The DBP Board at its August 27, 2021 meeting reviewed a revised TIF funding proposal, including an updated total private investment $1,013,526, for this application and recommended to Council an approximately 10:1 private to public investment grant ratio of $98,518, well above the City's TIF Policy recommendation of a 5:1 private to public investment.
• Improvements in this award recommendation include installation of ADA restrooms and some foundation repair, installation of an ADA accessible lift to the second floor, and sewer line repairs funded as follows:
  • Plumbing & carpentry for ADA restroom; interior wall repair, flooring & structural repair of the building’s foundation - $24,693
  • ADA lift preparation demolition and construction - $58,425
  • Sewer repairs to reestablish access to public utilities - $15,400

The DBP Board continues to be supportive of the project and found the revised application was a very strong match for accessing urban renewal funds because:

• The renovation and restoration project is well above (@10:1) 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 project further enhances 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.
• 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 - Portions recommended for TIF funding in the revised recommendation are bolded and in orange.

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. Its 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 building to be functional in downtown well into the future, enhancing vibrancy and economic investment in Downtown Billings through a centralized location.

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 necessary 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 $98,518 to be reimbursed to the Billings Community Foundation for the identified building remodel and utility repair work. The estimated total project cost is about $1 million, making the private to public investment ratio for this total project of about 10:1. 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.