DISCUSSION.  AFFIRMATION OF THE EAST BILLINGS BOULEVARD URBAN RENEWAL DISTRICT, WYETH FRIDAY, PLANNING DIVISION MANAGER.  The Council on March 23 is scheduled to consider adopting a resolution to modify the East Billings Boulevard Urban Renewal District (EBURD). The EBURD was originally created in November 2006 and while the tax increment in the district has increased, a significant amount of long range planning and project planning has also occurred to position the EBURD for development and redevelopment. The Council's intends to modify the district to include newly annexed properties east of the existing EBURD in the Exposition Gateway Concept Plan area as well as include two properties adjacent to the District that a property owner has asked be brought into the EBURD.

The Yellowstone County Board of Planning is being asked to review the EBURD Modified Plan and determine for the City Council if the modification is in conformance with the 2008 Yellowstone County and City of Billings Growth Policy. This is a requirement of both the creation and modification of an urban renewal district under state law. The Planning Board will discuss this request at this meeting and take action on the request at its meeting on March 24. If the City Council passes the resolution of intent to modify the EBURD on March 23, it will conduct a public hearing on April 13 and consider action on the modification. It is prior to this action and hearing that the Council will expect a recommendation from the Planning Board.

A significant amount of progress has occurred within the EBURD, as evidenced by:

1. Increase in taxable value: base year value of $1,800,794, increased to a 2014 value of $2,502,968 (Montana Department of Revenue Form AB-72T, 8-4-2014)
2. Successful approval of both the EBURD Master Plan and the Exposition Gateway Plan
3. Successful implementation of the recommended Parking Overlay District
4. Accomplishment of the recommended two-way streets conversions on 2nd Avenue North and 3rd Avenue North
5. Completion of EPA Brownfields Program environmental assessments on 23 parcels
6. Successful adoption of the EBURD Zoning Code
7. Completion of the Hospitality Corridor Study
8. Approval of a project to address flooding, storm water management, and infrastructure improvements in the eastern-most portion of the District.

However, many of the undesirable conditions continue to exist, and several properties adjacent to the District have been annexed into the City. Therefore, it would be in the best interest of the City to expand the District to encompass adjacent properties, construct needed public infrastructure improvements, increase growth of the tax base, increase the parking inventory, increase the inventory of residential property, stimulate mixed-use development, and further implement the visions of the EBURD Master Plan, Exposition Gateway Plan, and the Hospitality Corridor Plan.

Growth Policy Conformance
One of the requirements of Montana’s Urban Renewal Law (Title 7, Chapter 15, Parts 42 and 43) is that the urban renewal plan must conform to the community’s growth policy.  The Yellowstone County and City of Billings 2008 Growth Policy aligns with EBURD redevelopment in a variety of ways.  This amendment to the East Billings Urban Renewal Plan is consistent with the current Growth Policy.  A few specific examples of how the expanded EBURD revitalization efforts meet several Community Goals and Objectives outlined in the 2008 Growth Policy include:

• Land Use Goal #4, “Contiguous development focused in and around existing populations centers separated by open space.”
• Economic Development Goal #1, “Coordinated economic development efforts that target business recruitment, retention, and expansion."
• Land Use Goal #5, "Affordable housing for all income levels dispersed throughout the City and County."
• Land Use Goal #6, "More housing and business choices within each neighborhood."
• Aesthetics Goal #1, "Visually appealing communities."

Additionally, the projects planned for the area that would be included in the EBURD expansion, support:

• Transportation Goal #6, “Well maintained network of safe and interconnected sidewalks."
• Public Service Goal #4, “Sanitary and safe properties."

For more detail on the justification for conformance of this EBURD modification with the 2008 Growth Policy, please see Section 10 of the EBURD Plan Amendment attached to this memo. The City desires to improve the quality of land use and economic development potential of these properties by including them in the EBURD.

Procedural History

• Over the course of a year or more, the Billings Industrial Revitalization District (BIRD) Board and staff, acting as advisory to the City Council in activity in the EBURD, met with all of the owners of County property in the area east of the EBURD, south of 6th Avenue North, North of 1st Avenue South, and west of Exposition Drive. These discussions included and followed the process that led to the adoption by the City Council and Board of County Commissioners of the Exposition Gateway Concept Plan for the subject area. The discussions led to 12 properties being petitioned for annexation into the City and the City approving the annexations.
• In addition, a property owner with property at 620 North 14th and 622 North 14th adjacent to the existing EBURD (620 North 14th is directly adjacent to the EBURD boundary and 622 North 14th is adjacent to 620 North 14th and already in the City) met with BIRD staff and requested that these two properties also be included in the EBURD.
• On January 26, 2015, the City annexed 12 properties in the Exposition Gateway Concept Plan area.
• On March 24, 2015, the Yellowstone County Board of Planning will act on a recommendation to the City Council as to the modified EBURD Plan's consistency with the Growth Policy.
• If the City Council approves the Resolution of Intent to Modify the District, Declare Blight, and set a public hearing date, the Council will conduct a public hearing on April 13, 2015 and conduct a first reading on an ordinance to modify the EBURD.
• If the City Council approves the ordinance modifying the EBURD on first reading on April 13, the Council will conduct a second reading of the ordinance on April 27. Thirty days from the approval of the second reading, the ordinance will take effect.

The financial impact is unknown.  However, the 2014 taxable market value of the 14 properties to be included in the modified EBURD is approximately $93,600.  The purpose of an urban renewal and tax increment district is for the public to invest in infrastructure and thereby encourage private investment that increases the taxable value.  Without the public investment, it is assumed that the private investment would not occur, thus there is no “loss” of taxes from freezing the taxable value base because all taxing entities continue to collect taxes on the base value.

Staff recommends that the Planning Board review the modified East Billings Urban Renewal Plan, affirm the modified plan proposal is in conformance with the 2008 Yellowstone County and City of Billings Growth Policy as summarized in this memo and outlined in the modified Plan, and recommend the City Council expand the East Billings Tax Increment Finance District area and modify the Urban Renewal Plan.