Consent 1.F.
Regular City Council Meeting
- Meeting Date:
- 05/14/2018
- TITLE
- Approval of Reimbursement from SBBURD TIF Funds to King & King, LLC for its Demolition/Site Development at 4160 and 4130 State Avenue
- PRESENTED BY:
- Wyeth Friday
- Department:
- Planning & Community Services
Presentation:
No
PROBLEM/ISSUE STATEMENT
The South Billings Urban Renewal Association (SBURA) Board of Directors is presenting this recommendation to the City Council for allocating $212,993.00 in tax increment funds (TIF) from the South Billings Boulevard Urban Renewal District (SBBURD) to King and King, LLC for demolition, site improvements and some development. The property is located at 4130 and 4160 State Avenue and the funds would be used for demolition of existing dilapidated structures, water, sanitary sewer, storm drainage, landscaping, and sidewalk improvements, and installation of a public parking lot (See Application Attached). These improvements will address infrastructure for future development on the eastern portion of the property.
While this project will not generate significant increment initially, the improvement to the neighborhood, the overall elimination of blight, and the preparation of a portion of the property for future neighborhood commercial development are significant and warrant the investment of TIF funds. This property has been the subject of Code Enforcement complaints since 2008 with many cases to address junk or inoperable vehicles, open storage, camping in an RV, and other violations (See Site Photos Attached). There also is discussion among multiple community groups and King & King, LLC as to the development of a small retail grocery outlet of some kind to serve the neighborhood on the vacant portion of the property. This project is in conformance with the South Billings Master Plan as greater community safety through the built environment and further commercial development were both general recommendations of the plan.
The application for TIF Assistance was approved by the SBURA Board of Directors at its March 6th, 2018 Board of Directors meeting, and reaffirmed by the Board at its April 3 meeting, under its authority per the Memorandum of Understanding between the City of Billings, Big Sky Economic Development, and the SBURA, Inc. approved by the City Council in February 2014.
While this project will not generate significant increment initially, the improvement to the neighborhood, the overall elimination of blight, and the preparation of a portion of the property for future neighborhood commercial development are significant and warrant the investment of TIF funds. This property has been the subject of Code Enforcement complaints since 2008 with many cases to address junk or inoperable vehicles, open storage, camping in an RV, and other violations (See Site Photos Attached). There also is discussion among multiple community groups and King & King, LLC as to the development of a small retail grocery outlet of some kind to serve the neighborhood on the vacant portion of the property. This project is in conformance with the South Billings Master Plan as greater community safety through the built environment and further commercial development were both general recommendations of the plan.
The application for TIF Assistance was approved by the SBURA Board of Directors at its March 6th, 2018 Board of Directors meeting, and reaffirmed by the Board at its April 3 meeting, under its authority per the Memorandum of Understanding between the City of Billings, Big Sky Economic Development, and the SBURA, Inc. approved by the City Council in February 2014.
ALTERNATIVES ANALYZED
City Council may:
- Approve the SBURA recommendation and allocate the TIF Funds for this project; or
- Disapprove the SBURA recommendation and not allocate the TIF Funds for this project
FINANCIAL IMPACT
The Development Agreement (See attached) specifies a one-time payment of $212,993.00 to the King & King, LLC as part of the SBURA TIF Application Program. The funds are payable on completion of the project. There is currently more than $6 million in the SBBURD Budget and so there are adequate funds available for payment of this development incentive. An FY18 budget amendment to specifically identify this project may be required as part of the Fourth Quarter Budget Amendment process.
RECOMMENDATION
The South Billings Urban Renewal Association Board of Directors recommends that the City Council approve a $212,993.00 grant from the South Billings Boulevard Urban Renewal District tax increment district funds to assist King & King, LLC with this project.