The Downtown Billings Partnership Board has reviewed this TIF application and recommends the City Council approve a reimbursement up to $181,340 from Downtown Urban Renewal tax increment finance district funds to the Billings Symphony Orchestra and Chorale for renovation/rehabilitation of its property at 2820 2nd Avenue North subject to the following conditions:

1. The Applicant shall sign a development contract with the City of Billings and DBP within 90 days of City Council’s approval.
2. This TIFD reimbursement is the maximum that can be received pending satisfactory submission of all paid invoices showing the completion of expenditures related to this project.
3. If funds are not available, reimbursement can be carried over to the next fiscal year.

The DBP staff received and reviewed this TIF Application in April. It was then reviewed and recommended by the DBP Development Committee on May 14 and the full DBP Board on May 22, 2020 (See DBP Meeting Minutes attached).

The Development Committee and Board verified/clarified several issues during review, including:

• That while the Billings Symphony Orchestra and Chorale (BSOC) is a non-profit entity, the building will be owned by the Montana Development Company, a private organization that will ensure the building remains on the tax rolls;
• That while the Board had concerns about factoring the value of the building into the total applicant asset value, which made the proposal meet the 5:1 private to public investment ratio ( The estimated private to public investment ratio for this project if the building investment is removed is about 2:1), it decided to still recommend to Council the full amount because:

The application aligns with elements/goals of the DBA Strategic Plan (may be viewed through this link https://downtownbillings.com/about/about-the-dba/), City TIF Policy, MCA, and the North 27th Street District Urban Renewal Plan (See table below and attachments) For example, the adopted Urban Renewal Plan for the North 27th Street District, contemplated TIF funding assistance for business retention and recruitment in its Business Programs and Projects section.
 

Item	DBA Strategic Plan	Urban Renewal Plan	City TIF Policy	Montana Code Annotated
Building Remodeling, Exterior Improvements	Strong Downtown Identity – P.15 Vibrant & Connected Downtown – P.15	Business Programs & Projects – P.54 Infrastructure Improvements (Entertainment Venues) – P.55	Permitted uses of TIF Funds: Private infrastructure with Public Benefit (Facades, Windows, – P.2 Financial Assistance Through TIF – P.2	7-15-4233 7-15-4288

The BSOC plans to revitalize a key corner of downtown Billings at 29th St. and 2nd Ave. that has been vacant for several years. This project will activate an important intersection as well as elevate the Billings Symphony’s visibility and accessibility to the community. The BSOC will take over the 3,500 SF corner space to serve as its primary office space and ticket box-office for the public. In addition to the daily office functions, the space is also being designed to accommodate small performances for community enjoyment, creating “pop-up” mini-concerts in this space.

The BSOC is requesting TIF funds to reimburse it for improvements and modifications, including some demolition, new exterior lighting, new exterior awnings, fresh exterior painting, facade work and new windows, some electrical and HVAC work and street frontage landscape, signage and public art improvements. The total reimbursement requested is $182,340. If the total value of cash invested ($363,000) and land and buildings ($1,022,500) are factored into the request, the private investment is 87% and the public investment is 13%, or about a 7 to 1 ratio. However, the project to make the building improvements is $527,569, so if that is the basis for calculating the ratio, the private investment is about 66% and public investment are about 34%, or a 2:1 ratio. The DBP Development Committee and the DBP Board both supported this application request, recognizing both that the BSOC is a non-profit organization making a significant commitment and investment in Downtown Billings and that the BSOC was counting its land and building investments as part of its application in terms of its total investment.

City Council may:

• Approve the recommendation from the DBP Board for the expenditure of these TIF funds consistent with some elements/goals of the DBA Strategic Plan, North 27th Street Urban Renewal Plan, City TIF Policy and MCA, or;
• Modify the recommendation from the DBP Board for the expenditure of these TIF funds before taking action, or;
• Disapprove the recommendation from the DBP Board for the expenditure of these TIF funds. If the Council chooses not to approve this TIF application, specific reasoning for the denial is helpful to provide further direction to the DBP Board and staff, and City staff for future applications.

The request is for up to $181,340 to be reimbursed to the BSOC for the identified building remodeling and exterior improvements (See TIF Application Attachment). The estimated total project cost is $527,569, making the private to public investment ratio for this project about 2:1. The funds are payable pending satisfactory submission of all paid invoices showing actual cost incurred for the project. A budget amendment may be needed. If funds are available, existing cash will be used to issue a reimbursement.