The City Council is being asked to take action on three Memorandums of Understanding (MOUs) with the Urban Renewal District Advisory Boards for the three Urban Renewal Districts in Billings. The Council was scheduled to take action on two of the MOUs at its February 25 meeting but delayed action until this meeting so the MOU with the Billings Industrial Revitalization (BIRD) Board could be acted upon at the same time, and language regarding public open meetings requirements could be added. City staff and members of the BIRD Board and District support staff met twice in March and April to review sections of the MOU with the BIRD to reach consensus on several issues. The changes made in the MOU with the BIRD did not effect the other two MOUs under consideration, and mainly addressed BIRD's leadership role in some activities in the EBURD, the involvement of Big Sky Economic Development as a party to the MOU related to economic development activity in the EBURD, and inclusion of elements of the City's TIF Policy in the MOU in the same way as in the other two MOUs.

The organizations included in these MOUs are the Downtown Billings Partnership (DBP), the BIRD, and the South Billings Urban Renewal Association (SBURA). The City had MOUs that expired with the BIRD and SBURA in February 2019, and has developed a new MOU with the DBP as the previous one has been essentially expired for years. The City Council reviewed and proposed edits to the MOUs at its Work Session on February 4, and additional language regarding public open meetings requirements was proposed by the Mayor and provided to the Council at its February 25 meeting. Changes made to the MOUs are outlined here:

• Include language in all MOUs that clarifies the need for compliance with the City's TIF Policy.
• Provide specific reference regarding the type of insurance to be carried by the Advisory Boards to be Errors and Omissions Insurance.
• Strike a portion of the Land Use Decision Authority sections to clarify the Advisory Boards will specifically be informed and have the opportunity to provide input on amendments to land use regulations (i.e. Subdivision regulations, zoning regulations, etc.). However, while the City will continue its communication on zone changes or other land use applications, it will not expect formal recommendations from the Advisory Boards on these regular processes.
• Under the Conflict of Interest sections in each MOU, add that conflict of interest requirements apply to both Advisory Board members and any employees of the Board.
• Language regarding the requirements for open meetings was inserted into the MOUs in Section III Relationship of the Parties part A.
• One City Council Member brought up the concept of having a City Council Member or City staff member serve on each of the Advisory Boards, similar to the Downtown Billing Partnership configuration. Staff has not made any proposed edits in the MOUs in relation to this item as the Council as a whole did not appear to want to make this adjustment. The Council could make this change, or others, before it takes action on the MOUs at this meeting.
• Two City Councils Members have brought up the use of "claw back" provisions during discussion of the MOUs and TIF funded projects in the past few months. This type pf provision would condition TIF application approvals on mechanisms to have the TIF funding awarded for a project rescinded under certain circumstances after the project was approved. City Council Members, City staff and members of the three Urban Renewal Districts discussed the use of claw back provisions when the Council developed its TIF Policy in 2018. It was determined at the time that claw back provisions generally undermine the concept of encouraging property owners to rehabilitate and redevelop properties in the Districts and it was decided not to include such provisions in the Policy. While there may be situations where such provisions might be considered, staff is continuing to follow the Council-adopted TIF Policy as guidance in this area and not including claw back provisions in these MOUs.

All three of the District support staff have been provided the updated MOU documents in advance of this meeting, and all of the advisory boards have supported the MOUs as presented.

City Council may:

• Approve of the MOUs as drafted, or;
• Approve of the MOUs after making further edits or changes, or;
• Disapprove of the MOUs. If the Council does not approve the MOUs, the City and the Urban Renewal District Advisory Boards will continue to operate without any formal agreements in managing activities in the Districts.

There is no direct financial impact from approval of these MOUs for the City. However, management, administration and financial oversight is critical to the success of revitalization efforts in these Districts and coordinated work by the City and the Advisor Boards will lead to sustainable, responsible, and highly impactful financial investments in these areas. 

Staff recommends the City Council approve the three MOUs with the Downtown Billings Partnership (DBP), the Billings Industrial Revitalization District (BIRD), and the South Billings Urban Renewal Association (SBURA). The action should be taken in three separate motions - one for each MOU.