The Billings Industrial Revitalization District (BIRD) Board of Directors recommends the City Council approve up to a maximum reimbursement of up to $56,699 from the EBURD tax increment finance district funds to Air Controls Billings, Inc. to assist in an overall remodeling project at its operations at 2102 2nd Avenue North. Actual reimbursement will be based upon 100% of the actual costs incurred for qualified expenses for the improvements made to property subject to the following conditions:

1. The Applicant shall sign a development agreement with the City of Billings and BIRD 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.
 

The Billings Industrial Revitalization District (BIRD) Board of Directors is presenting this recommendation to the City Council for allocating $56,699 in tax increment finance funds (TIF) from the East Billings Urban Renewal District (EBURD) to provide financial assistance to Air Controls Billings, Inc. to assist in demolition and installation of sidewalk, curb, gutter, landscaping and fencing as part of an overall remodeling project at its operations at 2102 2nd Avenue North.

The property is located on the south side of 2nd Avenue North just west of the BNSF railroad spur and has frontage on 2nd Avenue North and 1st Avenue North. The application was initially submitted to the BIRD on December 18, 2024 and was resubmitted with updates on January 14, 2025. The BIRD Review Committee considered this application and recommended approval to the full BIRD Board. The BIRD Board reviewed and recommended approval of this project to the City Council at its board meeting on February 5.

The subject property is being remodeled for the Air Controls business with some building remodeling and internal work, site work, parking, sidewalks, landscaping, fencing and other improvements. The total cost for the project is $671,787. The BIRD Board found that this project was in line with the EBURD Master Plan and Urban Renewal Plan, particularly in the areas of economic growth, and infrastructure improvements.

The BIRD Board's recommendation of $56,699 toward the improvements results in about a 11:1 investment in private to public funds for the project based on a total project cost of $671,787. This ratio exceeds the 5:1 recommended ratio in the City's TIF Policy. The TIF contribution also represents a 8.44% contribution toward the total project cost, well below the 16.666% recommended threshold in the City's TIF Policy for qualifying expenses. The payback for this investment based on property tax increases is estimated at about 8 years. The BIRD Board noted several reasons for its support of the project:

• With the renovation of this property, this project is in alignment with the EBURD Urban Renewal Plan under its Business Programs and Projects and Infrastructure Improvements goals (See Pages 3 and 4, item I and IV of the Urban Renewal Plan Attached), and
• The EBURD Master Plan's principles of fostering economic growth, and ensuring commercial operations continue. Improvement of this property in the EBURD aligns well with the urban renewal efforts of the City and the EBURD.

Table 1.

Qualified Improvements	Recommended TIF Reimbursement	City TIF Policy	Urban Renewal Plan	MT Code Annotated
Concrete Site Work (sidewalk, curb and gutter) Landscaping Fencing	$56,699	Section 1(b)(c)	Section 2 (I) Business Programs and Projects Section 2 (IV) Infrastructure Improvements	7-15-4233 7-15-4288

This process and action of the BIRD is under its authority per the Memorandum of Understanding between the City of Billings, Big Sky Economic Development, and the BIRD, Inc. approved by the City Council on May 13, 2019 and renewed for one year on April 22, 2024 to expire June 30, 2025.
 

The City Council is the final authority in disbursing TIF funding. This proposed use of TIF funds conforms to the City's TIF Policy and aligns with the EBURD Urban Renewal Plan and Montana Code for urban renewal projects and programs. The City Council may:

• Approve the recommendation from the BIRD Board for the expenditure of these TIF funds, or;
• Modify and approve the recommendation from the BIRD Board for the expenditure of these TIF funds
• Disapprove of the recommendation from the BIRD Board for the expenditure of these TIF funds. If the Council does not approve of this TIF expenditure, providing reasons for the denial to the BIRD Board and staff and City staff will be helpful for future TIF applications.

The request is for a total of up to a maximum of $56,699 to be reimbursed to Air Controls Billings, Inc. only upon completion of the work and submittal of the invoices for the cost incurred. It is expected that this project will be completed in early FY26 and if this award is approved, there will be sufficient budget available.