The Billings Industrial Revitalization District (BIRD) Board of Directors recommends the City Council approve up to a maximum reimbursement of $22,354 from the EBURD tax increment finance district funds to STIR, LLC to assist in the redevelopment/re-purposing of property for at 304 North 19th. Actual reimbursement will be based upon 100% of the actual costs incurred for qualified expenses for the improvements made to property subject to the following conditions:

1. 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.
2. If funds are not available, reimbursement can be carried over to the next fiscal year.
 

The Billings Industrial Revitalization District (BIRD) Board of Directors is presenting this recommendation to the City Council for allocating $22,345 in tax increment finance funds (TIF) from the East Billings Urban Renewal District (EBURD) to provide financial assistance to STIR, LLC for security fencing as part of its redevelopment/re-purposing of property at 304 North 19th to house a catering business supporting the High Horse Saloon. The BIRD board reviewed and recommended approval of this project at its board meeting on Tuesday, October 11th.  The recommended amount was determined by the BIRD TIF review committee following work done by the BIRD director with the new property owner. The total fence project cost is $37,258.

The property has been vacant for about 16 months and has seen increased transient activity and graffiti. The new owner is planning to make cosmetic and site improvements, including painting the building, new signage, exterior lighting and streetscape and landscape improvements. The fencing will prevent trespassing and dumping of junk on the premises, but will more importantly enable the owner to utilize the full site and have a secure parking area. The owners plans are multi-phased (See attached STIR, LLC Narrative). The first phase is to use the property to support catering services related to the High Horse Saloon on Montana Avenue. The second phase is to enable a commercial kitchen leasing option which can support local food trucks and mobile catering businesses. The final element that may be eventually added is an on-site food service location which is currently limited in the neighborhood.

The BIRD Board's recommendation of $22,345 toward the improvements results in about a 60% investment in public funds and a 40% private investment for the fence portion of the improvements. The BIRD Board noted several reasons for its support of the project:

• This fence project is very similar to the Belle Chemical fence project funded in part by EBURD TIF funds in 2020 at a similar 60% public investment level.
• The fencing requirements in the EBURD Zoning regulations require a higher quality of fencing than standard chain link and so the cost of fencing commercial property is at a higher level in the EBURD area.
• The fence concept for STIR, LLC requires the site being secure before it can be used to the capacities the new owners need to keep equipment and vehicles safe, avoid vandalism and prevent dumping of junk on the property.
• The High Horse expects to increase its catering through STIR, LLC and looks to add 10-15 new employees for this venture that supports existing demand for catering services.
• With the reuse and redevelopment of this property, this project is in alignment with the EBURD Urban Renewal Plan under its Business Programs and Projects goal (See page 3, item I of the Urban Renewal Plan Attached), and the EBURD Master Plan's principles of fostering economic growth, and ensuring industrial operations continue. Reuse and improvement of this property in the EBURD aligns well with the urban renewal efforts of the City and the EBURD.

This process and action of the BIRD is under its authority per the Memorandum of Understanding between the City of Billings, Big Sky Economic Development, and the BIRD, Inc. approved by the City Council on May 13, 2019.
 

The City Council is the final authority in disbursing TIF funding. This proposed use of TIF funds conforms to the City's TIF Policy and aligns with the EBURD Urban Renewal Plan and Montana Code for urban renewal projects and programs. The City Council may:

• Approve the recommendation from the BIRD Board for the expenditure of these TIF funds, or;
• Modify and approve the recommendation from the BIRD Board for the expenditure of these TIF funds
• Disapprove of the recommendation from the BIRD Board for the expenditure of these TIF funds.

The request is for a total of up to a maximum of $22,354 to be reimbursed to STIR, LLC only upon completion of the work and submittal of the invoices for the cost incurred. It is expected that this expenditure, given its relatively small amount, will not negatively impact the EBURD budget for FY23.