In order to use Tax Increment Financing within an Urban Renewal District, legal counsel advises that all projects be specifically identified in the urban renewal plan or as amendments to the plan.  The Downtown Billings Alliance (DBA) is recommending that the Council amend the Expanded N. 27th Street Urban Renewal Plan by adding a retail retention and recruitment program so that funding can be committed to it at a future date.  State law requires a two (2) step process to amend an urban renewal plan.  On October 22, the City Council approved a resolution of intent to amend the plan.  The City Council must conduct a public hearing at this meeting and may thereafter adopt the ordinance that will be the actual plan amendment. 

The City Council may

• Approve the ordinance in its present or an amended form.  If Council approves it, the DBA will be able to request tax increment in future fiscal years to implement the project.
• Disapprove the ordinance.  The DBA will not be able to spend future tax increment on the proposed project.

There is no immediate financial impact.  The DBA is not proposing to fund the project at this time, but the options that are being discussed have relatively low cost.

The Downtown Billings Alliance recommends that the City Council approve the ordinance that amends the Expanded N. 27th Street Urban Renewal Area Plan to include a retail retention and recruitment program as a project that is eligible for tax increment financing.