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Item 2.
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| City Council Regular | |
| Date: | 12/08/2025 |
| Title: | Downtown Billings Partnership - Tax Increment Assistance - 2923 Montana Avenue - Building Facade Grant |
| Presented by: | Wyeth Friday |
| Department: | Planning & Community Services |
| Presentation: | No |
| Legal Review: | No |
| Project Number: | NA |
RECOMMENDATION
The Downtown Billings Partnership (DBP) Board (See attached November 2025 DBP Board Minutes) recommends the City Council conditionally approve a maximum reimbursement of $14,194.64 from Downtown Urban Renewal tax increment finance district funds to Frontier Law Firm for its building facade improvements at 2923 Montana Avenue. This project flows through the Downtown Facade program, which was last updated as a program when the Council adopted its TIF Policy in 2018 as a program, but does not currently have an annual budget assigned to it, like the CPTED and Sign matching programs. Facade Grant applications do not come in very often, so an annual budget has not been assigned to the program in past years (See further discussion of this in the Fiscal Effects section of this memo). The recommended conditions of approval are as follows:
- The applicant sign a development agreement with the City of Billings and DBP within 180 days of City Council approval.
- 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.
- If funds are not available, reimbursement can be carried over to the next fiscal year or when funds are available based on prior District bonding and debt obligations.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
The application was vetted by DBP staff and presented to the DBP Development Committee on November 10, 2025 with a TIF request of $14,194.64 for matching funds through the Downtown Facade Grant program. The program requires a 3:1 match of private funds to public funds for the program, and this total facade project is $56,77.62. The Development Committee reviewed the proposal and made a recommendation to the DBP Board for a TIF grant of $14,194.64. The recommendation was presented to the DBP Board on November 21, 2025, and the DBP Board made its recommendation to City Council. The reasoning for support of the application by DBP is its alignment with the facade program that encourages revitalization of existing buildings to bring in new tenants and activity. The improvement to this building built in 1916 at 2923 Montana Avenue meets elements/goals of the DBA Strategic Plan, North 27th Street Urban Renewal Plan, City TIF Policy and MCA.
Some of the exterior improvements will include sidewalk and curb repairs, ADA accessible access through the west side doors, replacing the existing garage doors with insulated doors that look like garage doors but function as the business entrance, and new lighting. The owner has already invested more than $400,000 in improvements to the building internally and externally prior to this facade project. The building is occupied by Frontier Law Firm on the second floor and Sunrise Studio and Art Gallery, and Blueprint MT (a reclaimed/repurposed furniture store) on the first floor. An ADA accessible conference room for the law firm is also located on the first floor.
Several elements of this project illustrate alignment with various plans and policies of the DBP and City:
1. Historic Redevelopment and Urban Revitalization: The historic preservation of this 1916 building rehabilitates and celebrates historic elements while achieving an updated office and retail opportunity.
2. Boost Commercial Vitality: The building shall assist in boosting commercial vitality of this area of Montana Avenue by providing tenant spaces for retail and office businesses.
3. Public Safety Benefits: Activation of the building at the street level with two retail businesses will improve the safety in the area of the building and along Montana Avenue, with the improvements, like lighting, also addressing CPTED strategies.
Table 1.
While Council has approved the Facade Grant program previously, funding for this specific program was not included in the FY26 budget due to the limited number of requests (see fiscal effects - the money exists to cover the grant request). Depending upon interest, it may make sense in FY27 to identify a specific annual budget for the Facade Grant program that Council approves so that each project does not need to come to Council. The Downtown DBP TIF budget forecast is attached to this memo for reference.
Some of the exterior improvements will include sidewalk and curb repairs, ADA accessible access through the west side doors, replacing the existing garage doors with insulated doors that look like garage doors but function as the business entrance, and new lighting. The owner has already invested more than $400,000 in improvements to the building internally and externally prior to this facade project. The building is occupied by Frontier Law Firm on the second floor and Sunrise Studio and Art Gallery, and Blueprint MT (a reclaimed/repurposed furniture store) on the first floor. An ADA accessible conference room for the law firm is also located on the first floor.
Several elements of this project illustrate alignment with various plans and policies of the DBP and City:
1. Historic Redevelopment and Urban Revitalization: The historic preservation of this 1916 building rehabilitates and celebrates historic elements while achieving an updated office and retail opportunity.
2. Boost Commercial Vitality: The building shall assist in boosting commercial vitality of this area of Montana Avenue by providing tenant spaces for retail and office businesses.
3. Public Safety Benefits: Activation of the building at the street level with two retail businesses will improve the safety in the area of the building and along Montana Avenue, with the improvements, like lighting, also addressing CPTED strategies.
Table 1.
| Qualified Improvements | DBA Strategic Plan | City TIF Policy | Urban Renewal Plan | Montana Code |
| Site work and safety - Some exterior window and door replacements and improvements; Concrete work for sidewalk areas, ADA accessibility | Vibrant & Connected Downtown – P.13 | Public infrastructure - P.2 |
Infrastructure Improvements– includes improvements - P.55 | |
| Building Exterior and Facade and work - ground floor windows, doors, framing of entrance areas, lighting | Strong Downtown Identity –P.13 | Private infrastructure with Public Benefit –P.2 | Crime Prevention and Public Safety -P.55 | 7-15-4288 |
While Council has approved the Facade Grant program previously, funding for this specific program was not included in the FY26 budget due to the limited number of requests (see fiscal effects - the money exists to cover the grant request). Depending upon interest, it may make sense in FY27 to identify a specific annual budget for the Facade Grant program that Council approves so that each project does not need to come to Council. The Downtown DBP TIF budget forecast is attached to this memo for reference.
STAKEHOLDERS
Rehabilitation of an existing historic building in Downtown Billings benefits the whole community by utilizing existing infrastructure, attracting visitors and shoppers to the Downtown, activating a corner that will discourage crime and ensure stewardship of the streetscape adjacent to the building.
ALTERNATIVES
City Council may:
- Approve the recommendation from the DBP Board for the expenditure of these TIF funds for a facade grant program award 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.
FISCAL EFFECTS
The recommendation is for up to a maximum of $14,194.64 to be reimbursed to Frontier Law Firm for the identified facade work for the building at 2923 Montana Avenue. The estimated total project cost for the facade work is $56,778.62, making the private to public investment ratio for this total project about 3:1 and meeting the Facade Grant Program requirements. The funds are payable per the conditions of approval outlined in this memo and in the attached DBP recommendation, pending satisfactory submission of all paid invoices showing actual cost incurred for the project. Current estimates of the future Downtown District revenues continue to be able to cover this project in FY26 and later, as well as support known future planned projects and bonding.
Attachments
- Fascade Grant Program Application
- DBP Transmittal Letter
- DBP Recommendation
- 2923 MT Avenue Historic Information
- DBP Board Minutes
- DBP Financial Forecast
- City TIF Policy
- Downtown Billings Urban Renewal Plan