The Downtown Urban Renewal District Advisory Committee recommends the City Council conditionally approve up to a maximum reimbursement of $585,092 from Downtown Urban Renewal District TIF funds to LDH Properties, LLC for building improvements at 213 North Broadway and authorize the Mayor to execute a Development Agreement with LDH Properties, LLC. 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 TIF 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.

The Downtown Urban Renewal District Advisory Committee recommends City Council approve up to $585,092 in Tax Increment Finance (TIF) assistance to LDH Properties, LLC for the rehabilitation and modernization of the historically significant building at 213 North Broadway. The requested TIF assistance represents 16.37% of the total project cost. The project will address decades of underutilization through substantial facade restoration, structural improvements, infrastructure upgrades, and enhanced energy efficiency. The redevelopment aims to achieve 100% building occupancy, increase employment from 3 to 22 employees, and grow annual visitation from approximately 600 to as many as 10,000 visits.

Eligible TIF expenditures include demolition, facade and entrance modifications, structural improvements, and electrical, plumbing, and fire alarm upgrades. The project aligns with the Downtown Urban Renewal Plan and Downtown Billings Strategic Plan by supporting business retention, workforce growth, public safety, infrastructure investment, and downtown revitalization.

The Downtown Urban Renewal District Advisory Committee recommends City Council approval of up to $585,092 in Tax Increment Finance (TIF) assistance to LDH Properties, LLC for eligible improvements to the building located at 213 North Broadway. The project will include nearly a 1,000 square foot lobby and expanded entrance to provide a space for public programming, seasonal displays, charitable initiatives, and downtown events. The project upgrades the energy efficiency of the building while modernizing the infrastructure. This investment will reverse years of declining taxable value through substantial private enhancements in structural improvements, facade restoration, building systems, and interior modernization. Natural surveillance will contribute to the perception of public safety through improved lighting, increased transparency through new larger street front windows, elimination of vacant spaces, and regular occupancy with multiple full-time employees and client visitation.

TIF eligible work includes demolition, major facade and entrance and egress modifications, structural and concrete improvements, and fire alarm system, electrical, and plumbing upgrades. The project aims to redevelop 213 N Broadway to represent a transformational investment to rehabilitate and fully activate a historically significant building that has been neglected for decades. The mid-block project will eliminate building vacancy, restore architectural character, increase employment and visitations, improve energy efficiency, generate new taxable value and strengthen a City block downtown. A primary objective is to bring the occupancy of the building to 100% through increased employment and growth. This will eliminate vacant offices, dark storefronts, and underutilized spaces. The facade of the building will restore architectural elements to reflect the historic fabric of downtown while incorporating modern functionality and accessibility. It will add more natural light and create a more inviting pedestrian atmosphere. This project will result in increased employee presence from 3 to 22 employees with a 10-year lease and a projected growth of individual visits from 600 to up to 10,000 a year. Major investments have already begun in the installation of solar panels and battery backup, as well as a full building length mural on the alley side completed in the last few years.
 
The request for TIF assistance is in the amount of $585,092 toward eligible expenditures, which represents 16.37% of the total project. The Downtown Billings Partnership Board and the Downtown Urban Renewal District Advisory Committee support this project and recommend approval. This project’s identified eligible expenses comply with the Montana Code Annotated and is alignment with the City's TIF Policy. Furthermore, this project conforms with goals of the Downtown Urban Renewal Plan in terms of supporting business recruitment and retention, crime prevention and public safety, and infrastructure. It also answers elements of the Downtown Billings Strategic Plan in contributing toward a safer, more robust downtown experience and investing in workforce growth and downtown visitations.  

Table 1.

Qualified Improvements	DBA Strategic Plan	City TIF Policy	Urban Renewal Plan	Montana Code Annotated
Site work and safety - Demolition, concrete work, building structural work Building Exterior and Facade and work - facade, entry and lobby expansion and reconstruction work. Second floor expansion and full window installation on street front on second floor Public access and area improvements - Sidewalk, entryway and lobby work Building Safety and Utility work to code - Fire alarm system upgrades, HVAC, electrical and plumbing upgrades	Vibrant & Connected Downtown – P.13 Strong Downtown Identity –P.13 A Diverse Economic Engine - p. 13	Permitted uses of TIF Funds: Demolition and structure removal - P.2 Private infrastructure with Public Benefit and Public infrastructure –P.2	Business Programs and Projects - support of street-level businesses, business retention Infrastructure Improvements– includes improvements to sidewalks - V. a. Viii. P.55 Crime Prevention and Public Safety though larger street front windows on the first floor and windows on the second floor with a full second floor expansion, lobby entrance and lighting - P.55	7-15-4202 7-15-4233 (i) 7-15-4288

The Downtown Billings Partnership Board and the Downtown Urban Renewal Advisory Committee support this project and recommend approval to the City Council. This project’s identified eligible expenses comply with the Montana Code Annotated, conforms with goals of the Urban Renewal Plan in terms of supporting tourism, safety, and infrastructure, and answers elements of the Downtown Billings Strategic Plan investing in an economic driver for the community.  
 

An award of up to $523,288 in Tax Increment Finance (TIF) assistance to LDH Properties, LLC for eligible improvements to the building located at 213 North Broadway will likely be reimbursed in early FY29. The Downtown Billings District cash flow projection spreadsheet is attached and anticipates positive year-end balances going forward that could cover this project expense along with other committed projects already included in the projection. 

The City Council may:

• Conditionally approve a maximum reimbursement of up to $523,288 in Tax Increment Finance (TIF) assistance to LDH Properties, LLC for eligible improvements to the building located at 213 North Broadway and authorize the Mayor to execute a Development Agreement with LDH Properties, LLC; or
• Modify the conditional recommendation for a maximum reimbursement of $523,288 in Tax Increment Finance (TIF) assistance to LDH Properties, LLC for eligible improvements to the building located at 213 North Broadway and authorize the Mayor to execute a Development Agreement with LDH Properties, LLC; or
• No approve a maximum reimbursement of $523,288 in Tax Increment Finance (TIF) assistance to LDH Properties, LLC for eligible improvements to the building located at 213 North Broadway and not authorize the Mayor to execute a Development Agreement with LDH Properties.