Staff recommends the Yellowstone County Board of Planning review the proposed District expansion and Draft Urban Renewal Plan amendments, and make a recommendation to the City Council that the expansion and plan amendments are in conformance with the 2016 City of Billings Growth Policy.

The City Council found that expansion of the South Billings Boulevard Urban Renewal District into the Southside Neighborhood area would help address hurdles to development with property conditions and cleanups, and public infrastructure needs that continue to align with the goals and purpose of urban renewal efforts in South Billings. Part of the concern is South Park which has significant infrastructure deficiencies as well as park amenity needs, including replacement of the South Park Pool and aquatic support facilities. The proposal to expand the District was brought to the City Council at a Work Session in August 2024 and September 2025. Council took action at its September 22 Business Meeting to pass a resolution of intent to expand the SBBURD and set a public hearing date for October 27. The Planning Board was informed of this item at its September 23 meeting and is scheduled to take action on this item at this meeting. Conformance with the City of Billings 2016 Growth Policy is one requirement for expanding an urban renewal district. Growth Policy conformance is outlined in Section 2 of the Review of Conditions that Contribute to Blight report attached to this memo. This action by the Planning Board is one of the critical steps to move the process forward to the City Council for action on the expansion.

The existing SBBURD boundary may be modified by ordinance in accordance with the procedure described in M.C.A. § 7-15-4221. City Council at its September 22 Business Meeting approved a resolution of intent to expand the SBBURD. The SBURA Board supports the expansion of the SBBURD by the City. Acting on a resolution of intent to expand the District is the first formal step for the City Council to move the process forward. The District was formed and amended in 2008, the Urban Renewal Plan for the District was amended in 2019, and the District and Plan was expanded and updated in 2021.

While expanding urban renewal districts is not common, it is a tool available to communities under the urban renewal laws, and Billings has most recently used the tool in the SBBURD in 2021. The process mirrors the process to create a district, with Council taking action on a resolution of intent to expand the District, updating the Urban Renewal Plan, notification of property owners both within the existing SBBURD boundary and the area to be included in the expansion, Planning Board review of expansion, legal notice of public hearing, and final Council action to expand the District.

DETERMINATION OF BLIGHT
Based on an analysis by City staff and Pioneer Technical Services completed in August 2025, it was found that properties within the proposed 903-acre expansion area (See Report with Map attached) have qualifying conditions per MCA 7-15-4202 and 7-15-4206 (2), that the area requires public infrastructure improvements, and the expansion area could benefit from program recommendations in the currently adopted SBBURD Urban Renewal Plan. The proposed SBBURD Expansion area contains a number of underdeveloped properties and areas lacking complete infrastructure. The Council previously determined that the property included in the SBBURD was “blighted” in its adoption of Ordinance #08-5462, Ordinance #08-5484, Ordinance #19-5725, and Ordinance #21-5765 that (a) created the SBBURD originally, amended the urban renewal plan, and last expanded the SBBURD in 2021. As cited in the attached Review of Conditions that Contribute to Blight report, the proposed expansion area meets several definitions of blight:

• Deficient Structures - buildings, street infrastructure, water and sewer infrastructure, stormwater infrastructure;
• Deficient Land Use - surface storage lots, vacant lots.

The City desires to improve the quality of land use, city infrastructure and economic development potential of these properties by including them in the SBBURD to construct needed public infrastructure improvements, grow the tax base, stimulate commercial development, and further implement the visions of the SBBURD Urban Renewal Plan.

PROCEDURAL HISTORY TO DATE

• In August 2024, the Council discussed the approach to expanding the SBBURD at a Work Session
• In April 2025, staff contracted with Pioneer Technical Services to assist in the technical alnalysis and process for the SBBURD expansion
• On August 4 the South Billings Urban Renewal Association (SBURA) heard an update on the plans to expand the District.
• On September 2, 2025, the Council heard a presentation on expansion of the SBBURD and directed staff to move the process forward.
• On September 22, 2025, the Council passed a resolution of intent to expand the SBBURD and set a public hearing date for October 27.
• On October 14, the Yellowstone County Board of Planning is scheduled to act affirmatively on a recommendation to the City Council as to the SBBURD expansion's consistency with the 2016 City of Billings Growth Policy.
• On October 9, a Community Information Meeting is scheduled to inform property owners in the SBBURD, in the proposed expansion area, and for the community in general of the plans to expand the District.
• If the City Council approves the ordinance modifying the SBBURD on first reading on October 27, the Council will conduct a second reading of the ordinance on November 10. The ordinance will take effect 30 days after second reading on December 10.

The Yellowstone County Board of Planning must review the proposed expansion of the South Billings Boulevard Urban Renewal District and Plan update, and affirm for the City Council that the District expansion conforms to the 2016 City of Billings Growth Policy.  Specifically, several Growth Policy Guidelines are addressed by potential development and redevelopment that may occur on properties to be included in the existing District and the District expansion. Some examples are called out here for the Board's reference:

(SBBURD Urban Renewal Plan Draft)
2025 Project and Program Recommendations:
Transportation Corridor Improvements – Construct and reconstruct transportation infrastructure in the District to include streets, sidewalks, lighting, traffic control, multi-purpose side paths, landscaping, water, sewer, stormwater, and transit access projects.

Improve the many uncontrolled intersections within the district with proper traffic controls. Also, improved traffic controls on South 27th Street to allow safer access for vehicular traffic, particularly northbound South 27th Street.

(2016 Growth Policy Guiding Principles)
Essential Investments (relating public and private expenditures to public values)
Infrastructure and service investments that stabilize or improve property values, secure future utility costs, consider maintenance costs, and improve our environmental quality far into the future (i.e. energy efficient) are desirable

(SBBURD Urban Renewal Plan Draft)
Parks & Recreational Amenities – Construct and enhance public facilities that will increase the quality or quantity of parks and recreational activities within the District. This may include, but is not limited to, a recreation center, swimming pool, ice arena, indoor and outdoor park development, and other amenities.

(2016 Growth Policy Guiding Principles)
Place Making (Enhance, maintain, preserve, and improve existing public places)
•  A multi-use community recreation facility is desirable

Essential Investments (relating public and private expenditures to public values)
•  Developed parks that provide recreation, special amenities (community gardens, dog parks, viewing areas), and active living opportunities are desirable for an attractive and healthy community

(SBBURD Urban Renewal Plan Draft)
Public Safety – Construction of Police or Fire facilities within the District, to include necessary furnishings for such facilities.

(2016 Growth Policy Guiding Principles)
Essential Investments (relating public and private expenditures to public values)
•  Public health and safety and emergency service response are critical to the well-being of Billings’ residents, businesses, and visitors

(SBBURD Urban Renewal Plan Draft)
Walking Paths and Trails – Construct sidewalks, trails and pathways throughout the District with landscaping to ensure the safety of children and all pedestrians, as well as provide access to neighborhoods and services.

(2016 Growth Policy Guiding Principles)
Essential Investments (relating public and private expenditures to public values)
•  The safety of all users and the connectivity of the transportation system are important criteria to consider in roadway designs and transportation plans

Community Fabric (attractive, aesthetically pleasing, uniquely Billings)
•  Planning and construction of interconnected sidewalks and trails are important to the livability of Billings

(SBBURD Urban Renewal Plan Draft)
School and Community Services – Assist in funding projects and programs in the District to enhance school playgrounds and athletic fields, health and wellness programs, access to community meeting and activity spaces, and other efforts that improve access to school and community services.

(2016 Growth Policy Guiding Principles)
Mobility and Access (transportation choices in places where goods and services are accessible to all)
• “Safe Routes to Schools” promotes physical health and reduces vehicle trips, earning parents more time and less costs for transportation
 

There are multiple opportunities for direct and indirect public participation for the process to expand the SBBURD boundary. This item is not a public hearing for this meeting, but the Planning Board meeting is open to the public so that the community may be aware of this process. This process comes before the City Council at two separate business meetings, both of which are open to the public, and one of which will be a public hearing. The City Council also conducted several Work Sessions on the expansion, one in August 2024 and one in September 2025. Further, the property owners in the existing SBBURD District and the property owners in the proposed expansion area also were directly noticed via US Mail of a community information meeting on October 9, 2025 and the public hearing at the Council Meeting on October 27. Per State Law, Yellowstone County, Billings School District #2 and Elysian School District #23 were also notified and staff attended meetings of those entities to explain the process and provide for comment from these taxing jurisdictions. This is all per Montana Code requirements for a District expansion process and public hearing notification.
 

The Planning Board may:

• Find the proposed expansion of the SBBURD and Urban Renewal Plan amendments are in conformance with the 2016 City of Billings Growth Policy; or,
• Find the proposed expansion of the SBBURD and Urban Renwal Plan amendments are not in conformance with the 2016 City of Billings Growth Policy. However, review of the adopted 2016 City of Billings Growth Policy and the Findings of Blight Analysis conducted by the City and the proposed amendments to the SBBURD Ruban Renwal Plan demonstrates several statements and guidelines in the policy align with the SBBURD purpose and future development opportunities within the District expansion area.

There is no direct fiscal impact by making a recommendation of conformance of this expansion to the South Billings Boulevard Urban Renewal District and Urban Renewal Plan amendments with the 2016 City of Billings Growth Policy. However, this District expansion will open up future development and public infrastructure improvement opportunities with urban renewal funds in the expanded area of the District.