Staff recommends the City Council provide an extension for the time period to execute the TIF Assistance Development Agreement with the Montana Rescue Mission until December 31, 2022 for its redevelopment project on Minnesota Avenue.

The City Council in April 2021 approved up to a maximum reimbursement of $420,000 from Downtown Urban Renewal tax increment finance district funds to the Montana Rescue Mission for qualified expenses for demolition and renovation of the property at 2822 Minnesota Avenue. One of the conditions of approval was that the applicant sign a development agreement (DA) with the City of Billings and Downtown Billings Partnership (DBP) within 150 days of City Council’s approval. The applicant has been unable to execute the DA as required in this time frame because of delays in finalizing project financing and other project logistics. The TIF assistance request will be applied to qualified expenditures including exterior restoration, foundational/structural improvements, Crime Prevention Through Environmental Design (CPTED) elements within landscaping, lighting and streetscape improvements.

The Montana Rescue Mission (MRM) is embarking on a project to create a Unified Campus for its operations and services. This project will encompass several buildings on Minnesota Avenue; some of which have been operational but not as optimal as they can be while other properties have been underutilized and in dire need of revitalization. This project involves properties between South 29th St and South 28th St (west to east), as well as Minnesota Ave and 1st Ave South (north to south). This effort will streamline MRM’s services in addition to contributing to the momentum of redeveloping and reactivating Minnesota Avenue. This new campus is a holistic approach to combat homelessness and guide vulnerable populations through the challenges of being re-established in the community. The new space will offer more privacy for its tenants, increase capacity, and offer low-income housing. Low-income tenants are still expected to meet the conditions associated with low-income housing requirements, and are subject to availability of units. This campus will also offer an outdoor green space, car and bike parking, playground and pet area, on-site daycare, vocational training, library lounge, exercise facility, community auditorium, medical clinic, computer lab, class and office spaces, and a barber/beauty shop.

This project was supported by the City Council and the DBP as it addresses many of the goals of the Downtown Billings Strategic Plan and Urban Renewal Plan, such as enhancing the pedestrian experience, contributing to public safety, activating vacant spaces, and providing natural surveillance. Additionally, this project uses existing infrastructure and resources to restore health and vitality for the benefit of downtown life and the surrounding neighborhood. The total reimbursement of $420,000 in qualified expenses is well below the City TIF Policy's recommended ratio of 5:1 private investment to public investment given the project's total estimated $12 million cost.
 

City Council may:

• Approve an extension for the time period to execute the TIF Assistance Development Agreement with the Montana Rescue Mission for its redevelopment project on Minnesota Avenue; or,
• Not Approve an extension for the time period to execute the TIF Assistance Development Agreement with the Montana Rescue Mission for its redevelopment project on Minnesota Avenue. If the extension is not approved, the applicant will have to re-apply for TIF funds through the process as the condition of executing the DA may not be met.

The approved reimbursement is for up to a maximum of $420,000 to be reimbursed to the Montana Rescue Mission for the identified building remodel work. The estimated total project cost is $12 million, making the private to public investment ratio for this project 24:1. This project is to be reimbursed in two phases over several fiscal years, starting the fiscal year after the project is completed. Currently, the project is estimated for completion in 2023. Since the City has approved this project, this reimbursement request is already factored into the Downtown District budget planning for future fiscal years.