Consent 1.E.
Regular City Council Meeting
- Meeting Date:
- 11/09/2020
- TITLE
- Corrected Memorandum of Understanding Concerning Disposition of Funds From Sale of YesterYears Building. 102 North 29th Street
- PRESENTED BY:
- Brent Brooks
- Department:
- Legal
RECOMMENDATION
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.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
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 the 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 Council Member Brown and seconded by Council Member 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 was on the Consent Agenda of October 26, 2020, as Item 1(c).. During discussion on this Consent Agenda item Council Member Ewalt noted there was an error in the dollar amount contained in the first sentence of Section II D of the MOU. The erroneous and incorrect amount was $ 835,750,000. The correct amount should have been $835,750. Council Member Ewalt made a motion to continue consideration of the document to a future Regular Business Council meeting to allow the error to be corrected. A substitute motion by Council Member Choriki to approve an amendment to the MOU by inserting the correct amount into Section II D. failed 6-5.The original motion to continue to a future Regular Business Council meeting to allow the correction was then approved 7-4. Attached is the corrected MOU with the amount of $835,750 inserted into the first sentence of Section II D., page one of the MOU document. The MOU, as now corrected, was previously 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.
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 Council Member Brown and seconded by Council Member 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 was on the Consent Agenda of October 26, 2020, as Item 1(c).. During discussion on this Consent Agenda item Council Member Ewalt noted there was an error in the dollar amount contained in the first sentence of Section II D of the MOU. The erroneous and incorrect amount was $ 835,750,000. The correct amount should have been $835,750. Council Member Ewalt made a motion to continue consideration of the document to a future Regular Business Council meeting to allow the error to be corrected. A substitute motion by Council Member Choriki to approve an amendment to the MOU by inserting the correct amount into Section II D. failed 6-5.The original motion to continue to a future Regular Business Council meeting to allow the correction was then approved 7-4. Attached is the corrected MOU with the amount of $835,750 inserted into the first sentence of Section II D., page one of the MOU document. The MOU, as now corrected, was previously 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.
ALTERNATIVES
City Council may:
- Approve the corrected MOU with the DBP, or,
- Amend the corrected MOU, or,
- Disapprove the corrected MOU.
FISCAL EFFECTS
The Downtown Tax Increment Fund will be increased by the amount of the sale price of the Building.