The Downtown Billings Partnership Board of Directors (DBP) recommends that the City Council approve a tax increment grant of up to $143,754 for public improvements to the Annex Building, 112 N. Broadway.  Mr. Jeff Neishabouri recently purchased the former home of the MSUB downtown campus.  He is rehabilitating the storefront, remodeling the interior for two street-level retail spaces and constructing one housing unit on the second floor.  The DBP considered a grant request of $499,530 but decided to recommend a smaller, $4 private/$1 public matching grant as explained in the attached documents.  The DBP operating agreement requires any grant over $50,000 to be approved by the City Council. 

City Council may:

• Approve the grant recommendation for the Annex Building, or;
• Disapprove the recommendation, or;
• Approve a different amount of grant funds for the project.

The Downtown Tax Increment District revenue is approximately $3.5 million per year in FY 16 and FY 17.  Subtracting the Empire Garage debt service, DBP operating agreement and other known expenses should leave over $3 million in the account at the end of FY 17.  The grant funds would reimburse Mr. Neishabouri when he submits paid invoices for eligible public improvements and the required amount of private investment. 

The DBP Board of Directors recommends that the City Council approve a 4/1 matching grant of up to $143,754 to Mr. Jeff Neishabouri for eligible improvements to the Annex Building, located at 112 N. Broadway.