// CITY COUNCIL'S TIF TRILEMMA

Three city-owned properties are slated for TIF funding requests tonight, on the heels of last week's discussion on potentially expanding the South Billings Urban Renewal Area (SBURA) TIF district. The Alberta Bair Theater (ABT), Babcock Theater, and Billings Depot are all requesting TIF funding to help with necessary safety improvements. What makes tonight's discussion interesting is that the Downtown Billings Partnership (DBP), the board that oversees the district, is recommending NOT funding any of the projects, citing insufficient funds and a recently estimated 7.3% reduction in value for the TIF district. The staff memo notes that if any of the TIF applications are approved, city staff recommends payment not occur until FY2026 or later.

Bollards at ABT

Alberta Bair submitted a TIF application for $83,000 of assistance to go toward the installation of bollards to protect pedestrians around ABT. The application highlights the importance of building safety into the area because of recent threats to pedestrians: 

Since the renovation, two traffic collisions near the theater have happened; one knocked down the lamp post and one-way street sign next to ABT and the other hit and injured a bicyclist and hit a parked car in front of the First United Methodist Church.

At least two more incidents have happened nearby recently.

In September of 2023, a 15-year-old girl was arrested on suspicion of driving under the influence and four other people were hospitalized when two vehicles collided at the intersection of Third Avenue North and North 27th Street. The collision caused the vehicles to wind up off the road, past the sidewalk, and on First United Congregational Church’s lot.

More recently, two women were found passed out in a vehicle littered with empty White Claw cans after they apparently drove into a sign near Spitz Mediterranean Restaurant and crashed into the bollards in front of Spitz, destroying the bollards. After the collision, the driver turned the vehicle around and drove to The Billings Gazette’s parking lot, where the two women were found unconscious. What would have happened to the restaurant had the bollards not been there is anyone’s guess.

It's also worth mentioning that the Billings Chamber of Commerce, in partnership with DBA, conducted a CPTED security survey of ABT in November 2023. One of our recommendations was to add bollards on the corner of N. Broadway and 3rd Ave. N. to protect pedestrians from vehicles.  

Babcock Renovations

The Babcock submitted a TIF application for $300,000 of assistance for repairs on a number of issues discussed earlier this year at a work session meeting in March. A host of safety and liability concerns are highlighted in the application. 

Marquee Rehabilitation: The Marquee is 70 years old and showing it’s age in many ways. While we budgeted what we thought was appropriate to address the needs in front of us, after architectural assessment there is much work that must be done for the drainage system. If we do not address this issue, anything we do cosmetically will simply begin to rust again. This number represents our work to get another 70+ years of beauty out of the Marquee!

SideWalk/Vault Fix: Many sidewalks in Downtown Billings have a basement “vault” space underneath them. The Babcock’s sidewalk support beams are severely eroded and need replacement. This requires taking up the old sidewalk, installing new steel support beams and relaying the sidewalk. All of this will be done to not only address the current erosion problem, but to also seal the space (better preventing erosion in the future).

Exterior Doors + Entryway: There is major energy loss with our current exterior door and they are not the most secure as a strong tug could open a locked door. We plan to replace the doors. On top of that our entryway floor is in need of a cosmetic upgrade that will be much safer and not as slippery when wet.

Brick Stack Demo: There is an abandoned brick chimney from the old boiler that is starting to erode and bricks have/are falling. This is a safety/liability issue we will address.

Mop Closet/Stairs Support: There is a section of flooring and stairs to the balcony that has sunk 3 inches over the past couple decades. We need to jack the floor up and resecure this section for safety and liability reasons.

Balcony Safety/Railing: As a historic property the Balcony of the Babcock does not meet current code requirements. While we are able to be grandfathered in and stay open, we are concerned for the safety of our community as it is a high risk area for someone to have an injury. We would like to address this by installing handrails up the middle of the balcony ailes/stairs.

The immediacy of these improvements is noted in the staff memo: "Due to the critical nature of needed improvements, I as City Administrator, recommend Council support staff bringing back a proposed approach to funding the improvements necessary to protect the structural integrity of the Babcock Theator property in 2024."

Billings Depot

The Billings Depot submitted a TIF application for $80,000 of assistance toward repair of concrete walkways and sidewalks, a small portion of the total $570,000 renovation project. The application shows the deterioration of the sidewalk and notes the damage jeopardizes the building foundation. 

Supplementing The Depot's TIF application are letters of support from the City, Mayor Cole, Visit Billings, and Big Sky Economic Development, written in early 2022 when The Depot was applying for the Montana Historic Preservation Grant to help fund this project.

Tonight's Discussion

Over the years, City Council has debated the merits of utilizing TIF funding for non-profit properties because of their tax exempt status and lack of contribution back into TIF district coffers. While nobody disputes that non-profits serve a need and provide value to the community—the Chamber is a non-profit!—TIF's utility is premised on the assumption that TIF funds will contribute to further growth/value of the district, providing additional funding in a perpetuating cycle. It's the reason why TIF applications for business properties always include an estimated ROI, demonstrating that the TIF investment will eventually provide added value to the district.

Adding another wrinkle to tonight's discussion—beyond the lack of funds, the DBP not approving the requests, and the non-profit statuses—is the fact that the City owns each of the properties applying for TIF funding, and is liable for the safety issues highlighted in the applications. 

Tonight's decision might not fit the exact definition of a trilemma, but it will be interesting to see how Council seeks to balance between so many competing factors.

// BUSINESS MEETING AGENDA - 5:30 p.m. - BILLINGS CITY HALL

In this section, we will include the meeting agenda for you to view. Clicking on the items will take you to more information. No need to read it all, but if something catches your eye, be sure to check it out.

PROCLAMATIONS: August - Healthy Tribes Wellness Month 

COUNCIL REPORTS: 

ADMINISTRATOR REPORTS - CHRIS KUKULSKI 

PUBLIC COMMENT on “NON-PUBLIC HEARING” Agenda Items: 1, 4, 5, and 6 ONLY. Comments are limited to three (3) minutes or as set by the Mayor.

1. CONSENT AGENDA -- Separations: 

A. Bid Awards: 1. City Vehicles. (Opened 8/6/24) Recommend Schedules 1 through 9 and 11 - Billion Auto Group; Schedule 10 - KIG Vehicle Concepts. Click to View 

B. Change Order No. 1, to General Contractor/Construction Manager Construction Services Contract with Dick Anderson Construction, Inc. (DAC) for W.O. 19-12: West End Reservoir Project. Click to View 

C. Change Order No. 5, to New City Hall Construction Manager at Risk (CMAR) Contract with Dick Anderson Construction. Click to View 

D. Contract with Motorola Solutions for 911 Phone and Radio Recorder. Click to View 

E. Billings Metropolitan Planning Organization Title VI Assurance. Click to View 

F. HOME-ARP Supportive Service Project - Subrecipient Allocations. Click to View 

G. Perpetual Right-of-Way Easements from TREH Commercial. Click to View 

H. Final Plat of Les Schwab Subdivision. *Quasi-Judicial Click to View 

I. Bond Resolution for Pooled Series 2024 Sidewalk Bonds for WO 23-02: Missing Sidewalk Improvements and WO 22-21: Brewington Drive Improvements. Click to View 

J. Bond Resolution for Pooled Series 2024 Special Improvement Bonds for Special Improvement Districts (SIDs) 1421,1422,1425,1426, and1427. Click to View 

K. Second/Final Reading Ordinance amending Sections 24-457, 24-467, 24-473, 24-1004 through 24-1006, and 24-1011, Billings, Montana City Code (BMCC), concerning parking fees and violations.  Click to View 

L. Bills for the Weeks of: 

1. July 22, 2024 Click to View 

2. July 29, 2024 Click to View  

REGULAR AGENDA: 

2. PUBLIC HEARING AND FIRST READING ORDINANCE FOR ZONE CHANGE 1051: located at 122 N. 12th Street. Zoning Commission recommends approval and adoption of the 10 review criteria. *Quasi-Judicial. Click to View 

3. PUBLIC HEARING AND FIRST READING ORDINANCE FOR ZONE CHANGE 1053: located at 1529 S. Billings Blvd. Zoning Commission recommends approval and adoption of the 10 review criteria. *Quasi-Judicial. Click to View 

4. TAX INCREMENT FINANCING ASSISTANCE from Expanded North 27th Urban Renewal District to the Alberta Bair Theater, up to a maximum reimbursement of $83,000. The Downtown Billings Partnership (DBP) Board does NOT recommend approval. Click to View 

5. TAX INCREMENT FINANCING ASSISTANCE from Expanded North 27th Urban Renewal District (a/k/a Downtown Tax Increment Fund) to the Cine Billings, d/b/a Art House Billings, up to a maximum reimbursement of $300,000. The Downtown Billings Partnership (DBP) Board does NOT recommend approval. Click to View 

6. TAX INCREMENT FINANCING ASSISTANCE from Expanded North 27th Urban Renewal District (a/k/a Downtown Tax Increment Fund) to Billings Depot, Inc., located at 2310 Montana Avenue, up to a maximum reimbursement of $80,000. The Downtown Billings Partnership (DBP) Board does NOT recommend approval. Click to View 

PUBLIC COMMENT on “NON-AGENDA ITEMS”. Comments are limited to 3 minutes or as set by the Mayor.

COUNCIL INITIATIVES: 

ADJOURN:

// WATCH THE MEETING ON COMMUNITY 7 TELEVISION

// CITY ADMINISTRATOR WEEKLY REPORT

City Administrator Chris Kukulski began the routine of sending a weekly report every Friday to City Council and department heads with the intent to, "communicate the highlights of the past week and any critical issues coming up." The most recent CA Report includes updates on:

• Semi-annual reports on Council Initiatives
• Council's Draft Strategic Plan
• And much more...

// GET MORE INVOLVED IN YOUR COMMUNITY

Below are some additional public meetings being held this week, along with information about when and where to attend, and what's on the agenda (if one is available).

Nothing Scheduled

// THE SQUEAKY WHEEL

// BOARD & COMMISSION OPENINGS

The Mayor's Office is accepting letters of interest to fill the vacancies listed on the city website. For more information on each specific board, visit the city website. City Boards and Commissions are appointed by the Mayor, confirmed by City Council, are advisory only, and members serve without compensation.

Submit applications to: Mayor's Office, PO Box 1178, Billings, MT 59103-1178 NO LATER THAN AUGUST 26th.

BOARD OPENING (SEATS)

Community Development Board (1)

Community Development Board (1)

Tourism BID (2)

REQUIREMENTS

Must live in Billings—Low-Mod

Must live in Billings

Live in Billings—Hotel Industry

// IN CASE YOU MISSED IT

The DRAFT City of Billings Strategic Plan for 2024 - 2026 is attached to the recent City Administrator Weekly Report. A snapshot of the Strategic Goals is below (pg. 10 of the report).

// ADDITIONAL BILLINGS CHAMBER RESOURCES

// BUSINESS ADVOCACY SPONSORS