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 (SBBURD). The incorporation expenses included attorney fees in the amount of $5,605.00 that were paid by Shawn Hanser, SBURA Chair.  Mr. Hanser needs to be reimbursed for his expense. Additionally, the SBURA has launched a mail campaign to raise membership in the association with the intent to make more businesses and residents aware of activities in the SBBURD. These administrative costs are necessary for the effective management of the SBBURD and are allowed costs that may be paid by tax increment financing pursuant to 7-15-4288 (7) MCA: “administrative costs associated with the management of the urban renewal area, industrial district, technology district, or aerospace transportation and technology district.” The SBURA requests Council approve allocating $15,000 from the South Billings Boulevard Tax Increment Finance account to cover these existing and anticipated administrative expenses.

The City Council may:
• Approve the request to allocate $15,000 for administrative cost associated with the management of the South Billings Boulevard Urban Renewal District.
• Disapprove the request to allocate $15,000 for administrative cost associated with the management of the South Billings Boulevard Urban Renewal District.

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 finance the debt on the King Avenue East road improvements and $300,000 for the Master Plan project, an estimated $874,024.00 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 $15,000 for administrative cost associated with the management of the South Billings Boulevard Urban Renewal District.