The South Billings Urban Renewal Association (SBURA), an incorporated non-profit organization, was created on September 28, 2010 for the purpose of advising the City Council on the allocation of tax increment funds derived from the South Billings Boulevard Urban Renewal District. The tax increment available at this time is $1,174,024.00 based on Finance Department estimates. This is the amount remaining after the 2010 developer payment for the King Avenue East improvements is subtracted. Given the availability of funding for public improvements, the SBURA recognizes the need to assess and prioritize public improvement projects comprehensively and systematically. For that reason, on November 30, 2011, the SBURA voted unanimously to recommend that Council approve an allocation of up to $300,000.00 for the purpose of developing a comprehensive Master Plan for the South Billings Boulevard Urban Renewal District. The Master Plan will be contracted to a qualified consulting firm and administered by the Planning Division with the assistance of the SBURA and Big Sky Economic Development Authority. It is anticipated that Requests for Proposals will be advertised by December 31, 2010 and a firm will be selected by January 31, 2011.  The City Council would be asked to approve the consultant contract at one of the February, 2011 City Council meetings.  The planning process will take approximately 12 months to complete. The expected outcome of the process is a prioritized list of public improvement projects that will achieve the vision for the future of this District.

The City Council may:
• Approve the request to allocate up to $300,000.00 to develop a Master Plan for the South Billings Boulevard Urban Renewal District.
• Disapprove the request to allocate up to $300,000.00 to develop a Master Plan for the South Billings Boulevard Urban Renewal District.  Staff would request that the City Council provide guidance on alternatives to the Master Plan and how projects should be indentified and priortized.

The South Billings Boulevard Urban Renewal and Tax Increment District received $1,368,704.00 of tax increment in Fiscal Year 2010. Subtracting $194,680.00 to meet the City's commitment to the Miller Crossing developer for the King Avenue East road improvements, an estimated $1,174,024.00 is available for project costs. There are sufficient funds available for the Master Plan with enough remaining balance to finance other urban renewal projects later in the year and in the future.

Staff recommends that City Council approve the SBURA request to allocate up to $300,000.00 to develop a Master Plan for the South Billings Boulevard Urban Renewal District.