Staff recommends Council approve the ground lease with Yellowstone Ice Foundation and authorize the Mayor to execute the lease and any other documents necessary to effectuate the lease. 

In 2017, Council approved the Parks and Recreation Comprehensive Plan which identified the need for increased indoor recreation space to expand recreational opportunities for the Billings Community. The City acquired 10 acres of property just east of Amend Park and north of King Avenue East using tax increment funds from the South Billings Boulevard Urban Renewal District (SBBURD) as part of the goal to develop the "South Billings Aquatics and Recreation Center" project.

In 2019, a South Billings Aquatic and Recreation Center Master Plan and Feasibility Study from A&E Design confirmed the need for expanded indoor recreation facilities. This feasibility study examined suitable locations and Amend Park was identified as the best option. Council approved the 2022 conceptual design and master plan for a multi-generational recreational center located at Amend Park. A general obligation bond issue placed on the ballot in November 2023 for funding the facility was not successful. 

Early in 2024, the South Billings Urban Renewal Association allocated funding to examine a different means of developing indoor recreation facilities at Amend Park. A study from Collaborative Design identified a campus layout at Amend Park to separate indoor facilities to allow for potential public-private partnerships to enhance opportunities for Billings' growing community. 

In the FY24 Capital Improvement Plan, Council approved $1 million for the design of the Amend Park Recreation Campus. The design components include a site plan to incorporate pad sites for potential public-private partnership opportunities for organizations like hockey, swimming, tennis, etc.  Also included in the design were architectural drawings for a sports court facility which included full-sized and middle school-sized basketball courts.

In September 2024, the City solicited proposals for design services for an overall site plan and architectural design of an indoor recreation/sport court facility that would incorporate a minimum of four full-sized or eight middle school-sized basketball courts. Council awarded the professional services contract to A&E Design in December 2024. Concurrently, the City solicited proposals for an indoor recreation facility located at the Amend Park recreation campus. Yellowstone Ice Foundation (YIF), a local non-profit organization, submitted a proposal that was selected to build an ice facility that would be owned by YIF but located on City-owned property at Amend Park. 

YIF’s proposal included a financial commitment from Signal Peak Mine to donate $6 million ($3 million cash and $3 million debt) to fund the construction of the ice facility.  Because Signal Peak required the first $3 million to be encumbered before the end of 2024, the proposal was solicited before the entire campus design was completed. Therefore, the City and YIF entered into an MOU to provide assurances the parties were working in good faith to partner on the project. This allowed YIF to encumber the funds while a more detailed lease could be negotiated.

The design consists of a new 69,996-square-foot, dual-sheet ice rink. The proposed building will be a single story with a mezzanine and primarily used as an assembly-use skating rink space. The facility is designed with two (2) sheets of ice, locker rooms, a lobby, public restrooms, a future pro shop, concessions, offices, storage, and mechanical rooms. The upper-level mezzanine space contains a workout room, hockey shooting room, entertainment suite, skybox viewing, and 4,000 square feet of space for tenant-improved areas to lease in the future. The facility has an occupant load of 2,940 occupants. The proposed construction will be a pre-engineered metal building designed as a type II-B system. The building will have an automatic sprinkler system and a voice evacuation fire alarm system.

The negotiated lease provides for a 20-year term with the option for two 5-year renewal terms. (Section 3.1) YIF will construct the facility at its own expense and will be required to contribute to maintenance costs proportionate to their use of the campus. (Section 5.1 and 7.1) Maintenance costs will be reassessed by the City annually to make any appropriate adjustments for new facilities or improvements and additional users' contributions to maintenance expenses. YIF will also be responsible for making repairs and maintaining the facility in good condition. (Section 9.1 and 9.2) YIF will obtain and pay for its utilities (including system development fees), taxes, and assessments.(Sections 5.2 and 6.1).  YIF plans to submit a TIF grant application that will include a reimbursement for system development fees.  YIF understands that the enclosed lease in no way predetermines the Council's future decision to award TIF funds.    

The exhibits to the lease are not yet finalized as of this writing but will be presented to Council at, or before, the March 24 regular meeting. 

City of Billings
Yellowstone Ice Foundation
Signal Peak
Citizens of Billings and surrounding region

City Council may:

• Approve; or,
• Not Approve

The City is providing the land and a minimum of 300 additional parking spaces at its own expense. The cost to provide parking, common area site improvements and infrastructure to the pad site will be paid for using SBURD TIF funds.  

YIF is responsible for all costs associated with building an approx. 70,000 sq. ft. two-sheet ice facility. YIF is also responsible for its proportional share of maintenance costs associated with the common areas, their monthly utility bills and system development fees.