Consent 1.J.
Regular City Council Meeting
- Meeting Date:
- 08/14/2017
- TITLE
- EBURD Tax Increment Assistance - Mazabuka LLP - Structure Demolition at 319 and 323 North 14th Street
- PRESENTED BY:
- Wyeth Friday
- Department:
- Planning & Community Services
Presentation:
No
PROBLEM/ISSUE STATEMENT
The Billings Industrial Revitalization District (BIRD) Board of Directors is presenting this recommendation to the City Council for allocating $15,290.60 in tax increment finance district funds (TIFD) from the East Billings Urban Renewal District (EBURD) to Mazabuka, LLC for the demolition of two houses at 319 and 323 North 14th Street (See Mazabuka TIFD Application Attachment). If approved, the TIFD funds will reimburse the applicant for costs associated with demolishing the old houses and preparing the site for redevelopment. The TIFD funds would go toward structure demolition, site survey and permit fees, site grading and removal of debris, and capping and abandoning the public water and sewer services to the property. The BIRD Board of Directors voted to support funding of this application at its meeting on July 11, 2017 under its authority per the Memorandum of Understanding between the City of Billings, Big Sky Economic Development, and the BIRD, Inc. approved by the City Council in February 2014.
ALTERNATIVES ANALYZED
↵The City Council is the final authority in disbursing TIFD funding. The City Council may:
- Approve the recommendation from the BIRD Board for the expenditure of these TIFD funds, or;
- Disapprove the recommendation from the BIRD Board for the expenditure of these TIFD funds.
FINANCIAL IMPACT
The request is for a total of $15,290.60 to be paid in one payment to Mazabuka, LLC for the identified work (See Mazabuka TIFD Application Attachment). The funds are payable upon approval of this TIFD application by the City Council and submittal of an invoice to the City Finance Department. While there is funding in the FY17-18 EBURD project budget for payment of TIFD assistance, a budget amendment is likely following approval of this item to specifically account for it as an FY18 project. The current total cash balance for the EBURD is about $900,000.
RECOMMENDATION
The Billings Industrial Revitalization District (BIRD) Board of Directors recommends that the City Council approve a reimbursement totaling $15,290.60 from the EBURD tax increment finance district funds to Mazabuka, LLC.