Staff recommends approval of the Memorandum of Understanding between the City of Billings and the Downtown Billings Partnership concerning disposition of funds from the future sale of the YesterYears Building located at 102 North 29th Street in downtown Billings.

During the September 14, 2020, City Council Regular Business meeting discussion on agenda item number 5 which involved approval of the payment of a line of credit to Big Sky Economic Development Authority (BSEDA) using Downtown Billings Tax Increment Financing funds, a related discussion occurred concerning the potential future sale and disposition of the proceeds from such sale of the YesterYears building (Building) located at 102 North 29th Street in downtown Billings. By way of a brief background on this building, the City Council previously approved the purchase of the Building by DBP in 2016 using Downtown Billings TIF funds. The purchase was intended for a future large-scale development project.

The question arose during the September 14 meeting concerning where proceeds from the sale of the Building would be deposited.Through a Council Initiative by Councilmember Brown and seconded by Councilmember Neese near the end of the September 14 meeting,the Council directed staff to prepare and bring back to a future regular business meeting a brief Memorandum of Understanding (MOU) between the City and the DBP that provided for the disposition of these proceeds upon sale of the Building.

The attached MOU is a brief document drafted by City staff and the DBP which provides for the deposit of the sale proceeds into the Downtown Tax Increment Fund if and when the Building is sold.

City Council may:

• Approve the MOU with the DBP, or,
• Amend the MOU, or,
• Disapprove the MOU.

The Downtown Tax Increment Fund will be increased by the amount of the sale price of the Building.