The Downtown Billings Partnership (DBP) Board of Directors is requesting that the City Council approve a $59,595 Downtown Tax Increment District (TID) grant to the Yellowstone Art Museum (YAM) for its planned Phase 1 Jail Restoration Project.  The project scope is outlined in the attached YAM Application for tax increment assistance.  The DBP contracts with the City of Billings to administer programs and projects within the downtown TID.  New programs that the DBP creates and grants over $50,000 require City Council approval.  

The YAM jail restoration project will  preserve the remaining portions of the 1884 jail and the 1914 addition.  The requested grant will be used in phase 1, which will remove lead based paint from the building's exterior and repaint or replace those surfaces. 

City Council may:

• Approve the grant, or;
• Disapprove the requested grant

The downtown tax increment fund (Fund 203) has a cash balance of $1.9 million and another $900,000 is expected in June.  Subtracting known funding commitments and bond reserve leaves a balance of $700,000 available for new projects.  The phase 1 jail restoration project is projected to cost $97,095.  The YAM applied for a TIF grant of $59,595, with the remaining $37,500 coming from the YAM budget and other cash and in-kind contributions.   

The Downtown Billings Partnership Board of Directors recommends that the City Council approve the Yellowstone Art Museum's request for a $59,595 tax increment grant for Phase 1 of the Jail Restoration Project.