The South Billings Urban Renewal Association (SBURA) is requesting approval of $70,838.63 in tax increment from the South Billings Boulevard Urban Renewal District (SBBURD) paid to Big Sky King Properties, LLC for public improvements associated with the development of a Popeye’s Louisiana Chicken quick serve restaurant. Big Sky King Properties, LLC has undertaken construction of an approximately 2,500 square foot building on a previously vacant site located near the corner of King Avenue East and South Billings Boulevard in the Popelka Commerce Center Subdivision. Big Sky King Properties, LLC is investing approximately $2.4 million into this project. The construction of this project will provide new investment 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 continued private sector investment development of the subdivision as well as the District. This project is the result of a recruitment effort coupled with the incentive programs available from the SBURA and the City.

Tax increment finance (TIF) funds will be used to offset the cost of public improvements required of the developer, primarily off-site street improvements, off-site landscaping, utility improvements, and bike/pedestrian trail improvements. Attached is an information packet providing a detailed financial analysis of the project.  The terms for the expenditure of these funds are formalized in the attached Development Agreement.

The application for TIF Assistance was approved by the SBURA Board of Directors at its November 4 meeting in the amount of $70,838.63. The requested amount equals approximately 45% of the estimated tax generated over the remaining life of the TIF District or $157,419.18.

City Council may:

• Approve, or;
• Disapprove the recommendation from the SBURA on the expenditure of these funds and authorize the Mayor to sign the Development Agreement.

The Development Agreement specifies a one-time payment of $70,838.63 to Big Sky King Properties, LLC 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.

Staff recommends the City Council accept the recommendation from the South Billings Urban Renewal Association Board of Directors to approve the expenditure of $70,838.63 from the South Billings Boulevard Urban Renewal District tax increment district funds to assist Big Sky King, LLC with this redevelopment project and authorize the Mayor to sign the Development Agreement.