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 and this proposed resolution of intent is the first step.  The resolution describes the proposed project, states the Council's intent to amend the plan to include the project, includes a proposed ordinance that will be the actual plan amendment and sets a public hearing date for November 13, 2012.  This item was originally scheduled for the August 27th meeting but the DBA desired changes to the resolution, so staff requested and Council agreed to table it until the September 10 meeting.  At the September 10 meeting, the DBA again requested that the item be delayed, this time until the October 22, 2012 meeting.    

The City Council may

• Approve the resolution of intent.  This is the first step in a two (2) step process.  The resolution of intent describes the proposed urban renewal plan amendment, contains a proposed ordinance that will amend the plan and sets a public hearing date for the Council to accept public comments and consider adopting the ordinance/plan amendment.
• Disapprove the resolution of intent.  The resolution is the required first step of amending an urban renewal plan.  If the Council does not approve the resolution, the plan will not be amended and tax increment may not be  spent on the proposed program.

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 resolution of intent to amend the Expanded N. 27th Street Urban Renewal Plan to include a retail retention and recruitment program as a project that is eligible for tax increment financing.