The South Billings Urban Renewal Association (SBURA) is requesting approval of $47,907.00 in tax increment from the South Billings Boulevard Urban Renewal District (SBBURD) for the development of a School Based Health Care Center located inside Orchard School.  This project is a collaboration between Orchard School, Billings Clinic, Riverstone Health, and SBURA. The project is to be a partnership with the school providing the space and the healthcare entities providing the program and personnel. The facility will provide basic healthcare services as well as psychiatric care.  The psychiatric care component is perhaps most important to the students of Orchard School as there is a high demand for these services. The facility is being proposed for Orchard School as this school demonstrates the greatest community need for these services.
This project will provide much needed healthcare to the students at Orchard School in the SBBURD. The project is consistent with the South Billings Master Plan as the plan identifies greater access to healthcare as one of its recommendations. This is a pilot program that will be evaluated to ensure the model works effectively. Once the program demonstrates its effectiveness, the plan is to move forward with other school-based healthcare centers located in other schools in the SBBURD and throughout the city. It is hoped that this project will serve as an example of this healthcare model for the community.
The tax increment financing (TIF) eligible improvements include interior remodeling such as new walls, HVAC, plumbing, and electrical. This project is unique in that Orchard School is a publicly-owned building, thereby making interior and building improvements eligible for the investment of TIF funds. The TIF Assistance application packet is attached providing 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 $47,907.00.
 

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 $47,907.00 to Orchard School 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 City Council accept the recommendation from the South Billings Urban Renewal Association Board of Directors to approve $47,907.00 from the South Billings Boulevard Urban Renewal District tax increment district funds to assist Orchard School and its partners with this remodeling project and authorize the Mayor to sign the Development Agreement.