The City Council created the South Billings Boulevard Urban Renewal District (SBBURD, as modified) with provisions for tax increment financing by Ordinance 08-5484 on December 8, 2008.  In 2011, the Council adopted the SBBURD Master Plan which lays out the pattern of future development and recommends improvements to public infrastructure for the District.  The Master Plan was funded with tax increment finance funds and is being administered by the South Billings Urban Renewal Association, Inc. (SBURA) and the City Planning Division.  The SBURA is an organization of property owners within the District created to make recommendations to City Council on tax increment expenditures and development in the District. Big Sky Economic Development Authority (BSEDA) provides economic development assistance to the City and Yellowstone County. A Memorandum of Understanding (MOU) establishing the roles and responsibilities of the City of Billings, BSEDA, and the SBURA for implementing the Master Plan.  The MOU specifies how each entity participates in the review, recommendation and approval of tax increment funds. City Council retains final decision-making authority on the expenditures of tax increment funds and land use applications.  The MOU is limited to an effective period of 5 years.  The BSEDA Board adopted the MOU in November, 2013 and the SBURA is expected to adopt it in January, 2014.

The City Council may choose to approve or not approve the Memorandum of Understanding.  By not approving the MOU, the City will have to assume all the responsibility for implementing the Master Plan and will have limited economic development assistance from BSEDA.

The MOU clarifies that all final decision making authority lies with the City for any land use or zoning decisions, and the expenditure of tax increment funds.  There will be staff time involved in reviewing the expenditure requests and forwarding recommendations to the Council for action on these items.

Staff recommends that Council approve the Memorandum of Understanding between the Big Sky Economic Development Authority, the City of Billings, and the South Billings Urban Renewal Association, Inc. for the implementation of the South Billings Boulevard Urban Renewal District Master Plan.