Consent 1.L.
Regular City Council Meeting
- Meeting Date:
- 08/11/2014
- TITLE
- SBURA Tax Increment Fund Request for CLDI, Inc.
- PRESENTED BY:
- Candi Millar
- Department:
- Planning & Community Services
Presentation:
PROBLEM/ISSUE STATEMENT
The South Billings Urban Renewal Association (SBURA) is requesting approval of $39,319.50 in tax increment from the South Billings Boulevard Urban Renewal District (SBBURD) paid to Community Leadership Development, Inc. (CLDI) for off-site public improvements associated with an affordable housing project. CLDI, a non-profit community housing organization, is planning to construct 10 units of affordable housing on a currently vacant site generally located on the corner of Orrel St. and Monroe St. west of Riverside Middle School. The units will be configured as 5 duplex units arranged with parking on site. CLDI is investing approximately $1.1M into this project.
The construction of these units will provide new investment in the area and much needed affordable housing in the SBBURD. The project is consistent with the South Billings Master Plan and the City’s Infill Policy. It is hoped that this project will serve as a catalyst for the redevelopment of the area and continued private sector investment.
Tax increment finance (TIF) funds will be used to offset the cost of public improvements required of the developer, primarily sidewalks, curb, gutter and landscaping. The sidewalks will extend along Orell Street westward and wrap around the corners to complete the sidewalk on Jackson Street. A portion of the tax increment finance assistance will be applied to other eligible off-site improvements to the street and utilities. Attachment A is an information packet that provides a detailed look at the project.
The application for TIF Assistance was approved by the SBURA Board of Directors at its June 3rd meeting in the amount of $39,319.50. The requested amount equals approximately 35% of the estimated tax generated over the remaining life of the TIF District or $112,341.44.
The construction of these units will provide new investment in the area and much needed affordable housing in the SBBURD. The project is consistent with the South Billings Master Plan and the City’s Infill Policy. It is hoped that this project will serve as a catalyst for the redevelopment of the area and continued private sector investment.
Tax increment finance (TIF) funds will be used to offset the cost of public improvements required of the developer, primarily sidewalks, curb, gutter and landscaping. The sidewalks will extend along Orell Street westward and wrap around the corners to complete the sidewalk on Jackson Street. A portion of the tax increment finance assistance will be applied to other eligible off-site improvements to the street and utilities. Attachment A is an information packet that provides a detailed look at the project.
The application for TIF Assistance was approved by the SBURA Board of Directors at its June 3rd meeting in the amount of $39,319.50. The requested amount equals approximately 35% of the estimated tax generated over the remaining life of the TIF District or $112,341.44.
ALTERNATIVES ANALYZED
The City Council can either approve or deny the recommendation from the SBURA on the expenditure of these funds.
FINANCIAL IMPACT
The Development Agreement specifies a one-time payment of $39,319.50 to CLDI as part of the SBURA TIF Application Program. The funds are payable on completion of the project. The cash balance of the SBBURD TIF fund is $3.4M. There are adequate funds available for payment of this development incentive.
RECOMMENDATION
The South Billings Urban Renewal Association Board of Directors recommends approval of $39,319.50 from the South Billings Boulevard Urban Renewal District tax increment district funds to assist CLDI, Inc. with this redevelopment project.