The Downtown Billings Partnership (DBP) Board recommends the City Council approve up to a maximum reimbursement of $1,326,348.55, starting in the fiscal year following the year in which the project is completed, from Downtown Urban Renewal tax increment financing district funds to the Masonic Temple Billings, LLC (Steve Widmyer) for its redevelopment of the Masonic Temple at 2804 3rd Avenue North at the southwest corner of the intersection of North 28th Street and 3rd Avenue North. The dispursements would be in three allotments of $442,116 in FY 28, FY29 and FY30 (assuming project completion in FY27). Actual reimbursement will be based upon 100% of the actual costs incurred for qualified expenses for renovation, subject to the following conditions:

1. The Applicant shall sign a development agreement for this project with the City of Billings and DBP 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. The dispursement totals would be in three allotments of up to $442,116 in FY28, FY29 and FY30 (assuming project completion in FY27).
4. If funds are not available, reimbursement can be carried over to the next fiscal year

Masonic Temple Billings, LLC first submitted an application on June 6, 2025 to the DBP requesting TIF assistance to renovate the Masonic Lodge building at 2804 3rd Avenue North for retail, office and housing. The building has sat completely vacant for several years and was only partially occupied before that. First floor windows were boarded up and the building was not a positive contributor to the Downtown and the Alberta Bair Theater directly across the street.  The application was vetted by staff, the Development Committee on June 9 and the DBP Board before a recommendation to fund the project was approved by the DBP Board at its June 27, 2025 meeting (See attached DBP Board minutes). 

The building will be remodeled at the ground level to reinvigorate retail storefront shop spaces. New entrances to each space will follow the patterns of the original ground floor entries and storefront windows to reinterpret the inviting retail areas. The second floor will be re-envisioned to convert vacant office space into 10 market rate studio and one-bedroom apartments. The third floor will be remodeled to house offices, preferably the umbrella of Downtown Billings including the Downtown Billings Association, Downtown Billings Partnership and Downtown Billings Business Improvement District, or for additional apartments if the office space project changes. The remaining area will be remodeled for a wellness studio.

The overall building infrastructure work will include:

• Rehabilitation of the mechanical, plumbing and electrical infrastructure in the building
• Exterior historic masonry preservation work, including joint patching, stone consolidation, patching and limited replacement of deteriorated classical elements
• Cleaning of all masonry to remove graffiti and pollution; and sealing the exterior stone and brick masonry with a penetrating sealer to limit damaging water intrusion 

The TIF award would support funding of:

• Demolition work
• Fire suppression systems
• Masonry and concrete work
• Plumbing, electrical and HVAC improvements
• First floor exterior metal, windows and window and door opening improvements
• Elevator improvements (See the TIF eligible improvement break down in Table 1 below and in more detail in the attached DBP recommendation

The project is estimated to be $7.9 million for the remodeling and site work as outlined in the TIF application for the project attached to this memo. The TIF eligible expenses recommended by the DBP Board total 16.6% of the total project at the recommended $1,326,348.55. If recommended/approved, reimbursements can begin in FY28 assuming the project is completed in FY27. The DBP Board is recommending three disbursements of $442,116 in FY28, FY29, and FY30 for a total of $1,326,348.55 (assuming the project is completed in FY27).

The reasoning for support of this application by DBP is outlined below. The project is in alignment with the elements/goals of the DBA Strategic Plan, North 27th Street Urban Renewal Plan, City TIF Policy and MCA as outlined in detail below:

• The project addresses blight remediation (MCA 7-15-4282 through 7-15-4294 and Ordinance 12-5590) through the remodel of a vacant historic building in Downtown Billings and meets the 5:1 private to public matching fund requirements of the DBP Large Project Incentive Grant criteria and City of Billings TIF Policy.
• The project further enhances the vibrancy of Downtown Billings through revitalization of an old building and improved public safety through modern remodeling and upgrades of structural components, fire, electrical, plumbing and HVAC systems.
• The housing component, which is a goal of the DBP Board and DBA, also will bring 24/7 activity to this area of Downtown, adding to the public safety of the area. 
• The application supports other elements/goals of the DBA Strategic Plan (maybe viewed through this link https://downtownbillings.com/about/about-the-dba/), City TIF Policy, MCA, and the North 27th Street District Urban Renewal Plan (See Table 1 below and the DBP Board Recommendation document attachment).

  Table 1.

Qualified Improvements	DBA Strategic Plan	City TIF Policy	Urban Renewal Plan	Montana Code Annotated
Site work and safety - Demolition; concrete work, exterior masonry Building Exterior and Facade and work - ground floor store transom openings, doors, windows, steel work Public access and area improvements - ADA compliance for ground floor and office areas, elevators and entrance areas. Building Safety and Utility work to code - Fire suppression systems, electrical, plumbing and HVAC	Vibrant &Connected Downtown – P.13 Strong Downtown Identity –P.13	Permitted uses of TIF Funds: Demolition and structure removal - P.2 Private infrastructure with Public Benefit and Public infrastructure –P.2 Financial Assistance Through TIF – (grants may be for for-profit businesses) P.2	Business Programs and Projects - support of street-level businesses, business recruitment Infrastructure Improvements– includes improvements to support lodging development - V. b. i and II. P.55 Crime Prevention and Public Safety -P.55	7-15-4202 (3) 7-15-4233 (i) 7-15-4288 (2) (4)

 
This project accomplishes many priorities of the Urban Renewal Plan, DBA Strategic Plan, Downtown Housing Study, and the City’s Growth Policy. The new build of the structure will increase the property value and generate more taxable value in the building itself. Transforming an old 3-story building into retail, office and housing components activates the corner of the block and contributes to the positive activity in the area generated by the Alberta Bair and several restaurants within a one-block area. The DBP Board supports this application request, recognizing this project will make a significant commitment and investment in Downtown Billings and building where City services and infrastructure already exist.  

 

Remodel and occupation of this historic building on a key corner of the Downtown is a benefit to the community as a whole as it reduces public safety service demands, increases visibility on the street with the added activity, and provides new or expanded retail and housing options for community members or people visiting or looking to relocate to Billings.

The DBP Board Meeting and the City Council Meeting are both public meetings that members of the public may attend and provide comment on agenda items. There was no public comment at the DBP Board meeting outside the applicant and the applicant's agent per the attached minutes. PCSD staff had not received any comment from the public at the time this memo was prepared.

City Council may:

• Approve the recommendation from the DBP Board for the expenditure of these TIF funds consistent with some elements/goals of the DBA Strategic Plan, North 27th Street Urban Renewal Plan, City TIF Policy and MCA.
• Modify the recommendation from the DBP Board for the expenditure of these TIF funds before taking action, or;
• Disapprove the recommendation from the DBP Board for the expenditure of these TIF funds. If the Council chooses not to approve this TIF application, specific reasoning for the denial is necessary to provide further direction to the DBP Board and staff, and City staff for future applications.

The recommendation is for a maximum of up to $1,326,348.55 to be reimbursed to Masonic Temple Billings, LLC (Steve Widmyer) for its redevelopment of the Masonic Temple at 2804 3rd Avenue North. The total project cost is $7.9 million. This maintains a private to public investment ratio for this total project of about 6:1. The disbursements would be in three allotments of $442,116 in FY 28, FY29 and FY30 (assuming project completion in FY27).

Actual reimbursement will be based upon 100% of the actual costs incurred for qualified expenses for renovation. The funds are payable per the conditions of approval outlined above in the DBP recommendation, pending satisfactory submission of all paid invoices showing actual cost incurred for the project, and per the reimbursement being broken down into three disbursements within three continuous fiscal years following the year in which the project is completed. If approved, payments will be incorporated into future years' budgets, the earliest is expected to be FY28 assuming project completion prior to that time. There is funding for this project, based upon the current estimates of the Downtown District revenues. Present cash flow projections show future year's cash position for the Downtown District remain positive.