Staff recommends that the City Council conduct a public hearing and approve the application and resolution granting a tax abatement for WP East 80 LLC dba Bottles & Shots in support of their $800,000 investment to expand their facility at 3925 Grand Avenue within the City.

The City of Billings operates property tax incentive programs under State Law authority found in 15-24-1401, 1501, 1502 and 1601 MCA.  WP East 80 LLC dba Bottles & Shots has applied for a tax abatement under 15-24-1501, MCA and City Resolution No. 05-18377.  This program encourages property remodeling, reconstruction and expansion by exempting 100% of the increase in valuation from City and local School District taxes during the construction period and for the following four (4) years.  In the fifth and subsequent years, the improvements are fully taxable.  Minimum qualifications include that the investment must be at least $500,000, it adds at least 2.5% to the property's taxable value, current property taxes are paid, the zoning is correct and the applicant disclose the type and the estimated number of full time and part time jobs that the investment will create.  The private investment meets the value criteria, taxes are paid and the zoning is correct. 

WP East 80 LLC currently employs 8 full time employees and 12 part time employees and intends to expand their work force by at least 3 within six months.  The new jobs will be customer service and sales associates.  See the enclosed summary of the tax abatement application from BSED and Bottles & Shots application.

The City Council must conduct a public hearing before considering the attached resolution that grants the tax exemption.  The hearing was advertised in the Yellowstone County News on June 30 and July 7, 2023.

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City Council may:

• Approve the tax abatement for the amount requests, or
• Approve a tax abatement for amount other than requested, or
• Not approve the tax abatement.

WP East 80 LLC dba Bottles & Shots submitted an application to abate taxes on commercial building remodeling at 3925 Grand Avenue for exterior improvements which began April 2023 and is scheduled to be completed by October 2023. The property is valued at $2.8 million as of September 2022. This business provides retail sales, food, and entertainment. It predicts adding 3 part-time employees after the remodel is complete. If Council approves the application, the business will not pay property tax on the net, new investment value until the incentive expires after four (4) years. The property will still be subject to the City’s other fees and assessments.