The City Council created the East Billings Urban Renewal District with provisions for tax increment financing by Ordinance 06-5395 on November 13, 2006. In 2009, the Council adopted the East Billings Urban Renewal District Master Plan which lays out the pattern of future development for the District. The Master Plan was funded by a federal grant obtained and administered by the Big Sky Economic Development Authority (BSEDA). The Billings Industrial Revitalization District Incorporated (BIRD, Inc.) is an organization of property owners within the District created to oversee tax increment expenditures and development in the District. The proposed Memorandum of Understanding (MOU) establishes the roles and responsibilities of the City of Billings, BSEDA, and the BIRD for implementing the Master Plan, including the review, recommendation and approval of tax increment funds. The City Council retains final decision-making authority on the expenditures of tax increment funds and land use applications. The three parties have reviewed this document and are in agreement with the terms.

The City Council may choose to not approve the Memorandum of Understanding. By not approving the MOU, the City will have to assume the responsibility for implementing the Master Plan.

The MOU gives all final decision making authority to the City for any land use or zoning decisions, and the expenditure of tax increment funds. There will be staff time involved in reviewing the expenditure requests and forwarding recommendations to the Council for action on these items.

Staff recommends that Council approve the Memorandum of Understanding between the Big Sky Economic Development Authority, the City of Billings, and the Billings Industrial Revitalization District, Inc. for the Implementation of the East Billings Urban Renewal District.