On 7 July 2013, the Billings Industrial Revitalization District (BIRD) presented a proposal to the Billings City Council to address infrastructure problems (water, sanitary, and stormwater management) that are inhibiting development and more productive use of properties within the City and County on the east end of Billings.  The total estimated cost of the Exposition Gateway Infrastructure Project is $3.1M.  Funding for the project is to come from the following sources; $250,000 from a County Rural Special Improvements District in the area; $600,000 from City Public Works, $2M from the issuance of tax increment financing (TIF) revenue bond from the expanded East Billings Urban Renewal District (EBURD), and $250,000 from existing EBURD tax increment funds.  On July 28, the City Council adopted a Resolution of Intent to use proceeds from a tax-exempt bond to reimburse project expenses that are incurred prior to the bond issuance.  Council is being asked to permit the TIF funds to be expended first and used for project design and engineering.

It is important to start on the engineering and design process this fall to ensure survey work can be completed before inclement weather sets in.  Failure to do so will cause the City to miss the 2015 construction season and delay the project for a full 12 months.  Therefore, BIRD would like to commit $250,000 of existing EBURD tax increment funds at this time to fund the design portion of the project.  This would allow the City to complete the majority of the design work concurrent with other required actions on the project; annexation and urban renewal district expansion. 

Paragraph 7-15-4288 (10) of Montana Code Annotated states “the connection of the urban renewal area or targeted economic development district to existing infrastructure outside the area or district” as an authorized use of tax increment funds.  Using TIF funds for this project is consistent with this statute as it positively impacts at least ten (10) landowners within the EBURD and connects to existing infrastructure within the District.

BIRD was given approval by the City Council to work with the City departments and move forward with the project.  This proposal allows BIRD to have multiple parts of the project moving forward concurrently and keep on an aggressive schedule to have the project finished by the end of 2015.

The East Billings Urban Renewal District Tax Increment Fund currently contains $676,000 in uncommitted funds.  Approval of this item will draw down the account to a maximum of $426,000.  If design work costs come in lower, the financial impact will be less.

The Board of the Billings Industrial Revitalization District recommends approval of $250,000 from the East Billings Urban Renewal District Tax Increment Fund to fund the design and engineering work for the Exposition Gateway Infrastructure Project.