At its April 9, 2018 meeting, the City Council approved a Memorandum of Understanding with several local organizations to fund the master development plan, conceptual design and engineering plans for major development in the One Big Sky District. The other local organizations, collectively called the Strategy Partners, are Big Sky Economic Development, the Chamber of Commerce, the Tourism Business Improvement District and the Downtown Billings Partnership.  The specific tasks these Strategy Partners will perform in conjunction with the proposed developer, Landmark Development Services Company, LLC, are laid out in a project development planning agreement (See attached Development Plan Agreement). The Big Sky Economic Development Corporation (EDC) has agreed to be the representative for all the Strategy Partners in the execution and implementation of the Development Plan Agreement. The Plan Agreement has been reviewed by the Strategic Partners, including City staff, and is now presented to the City Council for its approval. The governing bodies from the other organizations will also approve the agreement before the EDC will execute the agreement.

City Council may:

• Approve, the Development Plan Agreement, or;
• Disapprove the Development Plan Agreement, or;
• Recommend amendments to the Development Plan Agreement and consider its adoption at a future Council meeting.

The Strategic Partners' financial responsibility for execution and implementation of the Development Plan Agreement is $675,000.  This cost was developed by Landmark Development Services Company, LLC, in conjunction with the Strategy Partners and is outlined in Exhibit 1 of the Development Plan Agreement based on past planning work on projects of this scale.  The City's direct contribution is $100,000, with another $400,000 coming from a line of credit from the EDC that is secured by the value of a building the City purchased with downtown district TIF funds. The other Strategy Partners and contributions from the private sector make up the balance of the $675,000.

Landmark Development Services Company, LLC's estimated capital costs for the implementation of the Development Plan Agreement are outlined in Exhibit 4 of the Agreement. These costs, not to exceed $1,340,000, would be payable to the Developer if a catalyst project identified in the Development Plan moves forward and Landmark Development Services Company, LLC is not contracted to develop the project. However, since the catalyst project will include public and private funding elements, the capital costs would not be payable until the financing is approved by the City for the catalyst project.
 

Staff recommends that the City Council approve the Development Plan Agreement and authorize EDC to execute the Agreement on the City's behalf as a member of the Strategy Partners.