Staff recommends that the City Council conduct a public hearing and approve the application and resolution granting a tax abatement for Players Club Inc. in support of their $1,400,000 investment to expand their facility at 247 Main Street within the City.

The City of Billings operates property tax incentive programs under State Law authority found in 15-24-1401, 1501, 1502 and 1601 MCA.  Players Club Inc has applied for a tax abatement under 15-24-1501, MCA and City Resolution No. 05-18377.  This program encourages property remodeling, reconstruction and expansion by exempting 100% of the increase in valuation from City and local School District taxes during the construction period and for the following four (4) years.  In the fifth and subsequent years, the improvements are fully taxable.  Minimum qualifications include that the investment must be at least $500,000, it adds at least 2.5% to the property's taxable value, current property taxes are paid, the zoning is correct and the applicant disclose the type and the estimated number of full time and part time jobs that the investment will create.  The private investment meets the value criteria, taxes are paid and the zoning is correct. 

Players Club Inc currently employs 8 full time employees and 12 part time employees and intends to expand their work force by at least 3 within six months.  The new jobs will be customer service and sales associates.  See the enclosed summary of the tax abatement application from BSED and Players Club Inc application.

The City Council must conduct a public hearing before considering the attached resolution that grant the tax exemption.  The hearing was advertised in the Yellowstone County News on June 30 and July 7, 2023.

 

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City Council may:

• Approve the tax abatement for the amount requests, or
• Approve a tax abatement for amount other than requested, or
• Not approve the tax abatement.