On March 23, 2015, the Council adopted a resolution of intent (Resolution #15-10438) to modify the East Billings Urban Renewal District (EBURD), which included tax increment authority, a description of the property involved, and a determination of blight.  On April 13 the City Council conducted a public hearing and adopted an ordinance on first reading to expand the EBURD.  The modifications propose to add 16 properties and road right-of-way to the existing District.  The Council must now consider whether to adopt the ordinance on second and final reading.

City Council may:

• Approve the ordinance to modify the EBURD.
• Not approve the ordinance to modify the EBURD.
• Modify the proposed boundary of the EBURD and adopt the ordinance.

The exact financial impact of modifying the EBURD is unknown.  However, the 2014 taxable market value of the 16 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 on these properties, 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 as it is today.

The EBURD was created on November 16, 2006. The existing urban renewal plan may be modified by ordinance in accordance with the procedure described in M.C.A. § 7-15-4221. In January 2015, properties encompassing about 18 acres were annexed into the City. In addition, a property owner with property at 620 North 14th and 622 North 14th adjacent to the existing EBURD and already in the City requested that these two properties also be included in the EBURD.

The proposed EBURD Expansion area contains a number of underdeveloped properties and substandard facilities.  The Council previously determined that the property included in the EBURD was “blighted” within the meaning of the Act in its adoption of Ordinance #06-5395 that (a) created the East Billings Urban Renewal District (EBURD) and (b) adopted an urban renewal plan for the district (November 16, 2006).  As cited in the EBURD Plan Amendment, the area still meets several definitions of blight. Further details of the determinations summarized below are found in Section 5 of the EBURD Plan Amendment attached to this memo: Deficient Structures - buildings, street infrastructure, water and sewer infrastructure, stormwater infrastructure; Deficient Land Use - surface storage lots, vacant lots, single-story structures; Protecting Public Health and Safety- conditions of blight, crime, vagrancy and potential brownfields, as described above, reduce “social capital” and community connectedness. Flooding promotes mold growth and related health problems. The City desires to improve the quality of land use and economic development potential of these properties by including them in the EBURD.

On March 23, 2015, the City Council passed a Resolution on the East Billings Urban Renewal District Area, declaring blight, the intent to modify the District, and setting a public hearing. At its meeting on April 13, the Council conducted a public hearing and approved the ordinance on first reading to expand 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 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 meetings also led to some of the property owners petitioning for annexation into the City.
• A property owner with property at 620 North 14th and 622 North 14th adjacent to the existing EBURD (620 North 14 is directly adjacent to the EBURD boundary and 622 North 14 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 acted on a recommendation to the City Council as to the modified EBURD Plan's consistency with the Growth Policy (See attached letter of conformance from Planning Board).
• The City Council on March 23, 2015, approved a Resolution of Intent to Modify the District, Declare Blight, and set a public hearing date
• The Council conducted a public hearing on April 13, 2015 and approved on first reading an ordinance to expand the EBURD.
• If the City Council approves the ordinance modifying the EBURD, it will take effect 30 days after second reading.

The owners of the properties to be included in the modified EBURD area were contacted by the BIRD Board and staff about modifications to the District.  The owners were officially notified via letter in accordance with 7-15-4215, MCA, of the public hearing on the modified EBURD held on April 13, 2015. Notification of the public hearing was also properly advertised in the Billings Times.

Conformance with the Yellowstone County and City of Billings 2008 Growth Policy is one requirement for adopting or modifying an urban renewal plan. Growth Policy conformance is outlined in Section 10 of the EBURD Plan Amendment document attached to this memo. Further, the Yellowstone County Board of Planning has provided a recommendation to the City Council on the proposed EBURD Plan Amendment's conformance with the 2008 Growth Policy. That recommendation is attached to this memo for Council consideration.