The Downtown Billings Partnership (DBP) Board has reviewed this application for tax increment assistance and recommends the City Council not approve the request for tax increment finance funds from the Expanded North 27th Urban Renewal District to the Billings Depot, Inc.

 

Billings Depot, Inc. is a non-profit that manages the Depot campus located at 2310 Montana Avenue. As the property is owned by the City and managed by a non-profit, there are no property taxes paid on this particular property.

Billings Depot, Inc. intends to address a variety of issues within the historic buildings located on the Depot campus. These include exterior door refinishing, concrete walkway repairs, roof repairs, Post Building restoration, and flooring repairs. The TIF funds are for public sidewalk repairs and walkways around the Depot. The total cost of improvements is approximately $570,000, and leverages a Montana Historic Preservation Grant and contributions made to the Depot.

The DBP considered the application at its July 26th meeting and voted not to recommend $80,000 in TIF assistance. The DBP's decision was based on the district's financial projections and current priorities, which emphasize downtown housing, mixed-use projects, and public safety. While acknowledging the significance of The Depot's improvements and its importance downtown, the DBP's recommendation reflects a prioritization of these goals and limited financial resources.

Table 1. Alignment of Proposed Improvements with City TIF Policy, Expanded N. 27th Urban Renewal District Plan, and MT Code Annotated.

Qualified Improvements	DBA Strategic Plan	City TIF Policy	Urban Renewal Plan	Montana Code Annotated
Concrete Walkways	A Strong Downtown Identity - P. 13	Permitted uses of TIF Funds: Public infrastructure including...sidewalks P.2 Private infrastructure with Public Benefit and Public infrastructure - P.2 Financial Assistance Through TIF - (grants may be for non-profit businesses)	Infrastructure Improvements (Part V. P 55) Expansion of Historic District Sidewalks, curbs, and gutter improvements Public Infrastructure to support entertainment venues and conference facilities	MCA 7-15-4288 (4)

City Council may:

• Approve the application for TIF funds, contrary to the DBP's recommendation; or,
• Modify the requested amount or terms for the expenditure of TIF funds; or,
• Disapprove the application for TIF funds, inline with the DBP's recommendation.

This project was not included in the FY25 budget and DOR just reported an approx. 7.3% reduction in value for the downtown TIF district.  If approved, staff recommends that payment not occur until FY26 or later. The development agreement with the Rockman project (approved on 3/11/24), limits the ability for the TIF to fund new development projects prior to the completion of that project. The total amount requested for this project is $80,000 and will need to be budgeted in future years, as funds are available.