// SBURA TIF EXPANSION: TARGETING BLIGHT AND CREATING A SOUTH PARK POOL FUNDING PATHWAY

City Council is considering expanding the South Billings Urban Renewal District to add 903 acres and 1,597 parcels—primarily residential properties in the "Southside Triangle" area. The expansion would substantially increase the size of the district and include areas impacted by blight conditions.

(Orange boundary is current SBURA TIF, Blue boundary is proposed expansion)

Why it matters: The expansion would unlock Tax Increment Financing resources to address deteriorating infrastructure that affects daily life for residents, from crumbling sidewalks to inadequate storm drainage.

• The area serves some of Billings' most vulnerable populations, with median household incomes 27% below the state median.
• It also provides a pathway to fund the $8 - $15.5 million renovations to South Park Pool after voters rejected a $143 million bond question in 2023.

Tax Increment Financing (TIF) in one sentence: TIF districts establish a property tax "base" (A), then capture increased tax revenue above that base (B) over time to reinvest in the district's infrastructure and make economic development improvements that address blight and other concerns.

State law requires cities to document at least three blight conditions before establishing or expanding urban renewal districts. A report provided by Pioneer Technical Services (PTS) found six qualifying conditions in the proposed SBURA area.

§7-15-4206(b): Structures ill-suited for original use

• Garfield School repurposed for alternative use without efficient retrofitting
• Warehouses and commercial buildings repurposed inappropriately
• South Park Pool building lacking proper chemical storage containment

§7-15-4206(c): Deterioration of building structure components or infrastructure

• Deteriorated sidewalks, curbs, gutters, and alleys throughout the district
• Damaged and unsafe sidewalks in South Park
• Roof deterioration on ancillary buildings in South Park
• Advanced disrepair of South Park Pool infrastructure

§7-15-4206(d): Buildings endangering public safety

• Colonial Apartments on South 27th Street subject to legal action for structural damage, electrical/plumbing hazards, peeling paint, and broken windows/doors

§7-15-4206(e): Inadequate utilities and infrastructure

• Over 6,700 feet of residential streets that are gravel and don't meet city standards
• Contaminated storm main in State Avenue requiring replacement
• Need to pipe Kratz Drain between Mitchell and Jackson Court Apartments
• Replace water mains in President streets south of State Avenue
• Missing sidewalks, proper drainage controls, curbs, and gutters on multiple streets
• Non-ADA compliant sidewalk approaches at key intersections
• Damaged electrical infrastructure in South Park

§7-15-4206(f): Environmental remediation costs

• Billings PCE Superfund site overlaps proposed expansion boundary
• Active and remediated leaking underground storage tank (LUST) sites

§7-15-4206(h): Excessive vacancies

• Multiple vacant, underutilized properties on 1st Avenue South showing progressive deterioration from 2021 to 2025

The report also listed extensive infrastructure deficits throughout the proposed expansion area that were identified by the Billings Engineering Department and require significant investment. Much of this overlaps with the identification of blight (above) but is worth highlighting as they largely represent good uses of TIF funds if the district were to expand.

• Street Lighting
• Add street lights in areas with inadequate or missing lighting
• Water and Drainage Systems
• Replace contaminated storm main in State Avenue from South 35th Street to South 27th Street
• Pipe the existing Kratz Drain between Mitchell and Jackson Court Apartments
• Address widespread improper drainage causing asphalt damage and safety concerns
• Replace aging water mains in President streets south of State Avenue
• Transportation Infrastructure
• Upgrade over 6,700 feet of substandard residential streets from gravel to city standards
• Washington Street improvements between State Avenue and King Avenue East (drainage, curb, gutter, sidewalks)
• Infrastructure upgrades needed on portions of Riverside Road and Jackson Street
• Install sidewalk or trail on Sugar Avenue from State Avenue to Riverside Drive for pedestrian safety
• ADA compliance upgrades for sidewalk approaches at multiple intersections, including State Avenue/South 35th Street
• Replace deteriorated and unsafe sidewalks throughout South Park and residential areas
• Install missing sidewalks on streets currently lacking pedestrian infrastructure
• Curbs and Gutters
• Extensive curb and gutter replacement needed

Timeline:

• Sept 22: Council resolution declaring blight, setting public hearing
• Oct 9: Community information meeting for property owners
• Oct 27: Council first reading and public hearing
• Nov 10: Final council approval (also the 250th Marine Corps Birthday, YUT!)

Looking back: Council discussed SBURA expansion in August 2024 as an option for funding South Park Pool after voters rejected a $143 million Parks & Rec Bond that would have dedicated $16.5 million to South Park Pool.

The bottom line: The expansion would add increment dollars in the district's remaining 21-year lifespan, providing additional funding for infrastructure improvements and economic development projects, including the South Park Pool renovation that would otherwise require direct taxpayer funding or remain unaddressed. And although the next legislative session isn't set to start until 2027, legislators oppositional to TIF are likely to have a keen eye on how such a major expansion is implemented, perhaps looking to find reason to introduce legislation limiting the tool.

// WORK SESSION 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.

CALL TO ORDER: Mayor Cole 

PUBLIC COMMENT ON ALL ITEMS. Comments are limited to three (3) minutes during each public comment period or as set by the Mayor. 

1. South Billings Boulevard Urban Renewal District (SBBURD) Expansion Analysis Update.

-Public comment  

2. Urban Renewal District Legislative and Operational Modifications.

-Public comment 

HIGHLIGHT UPCOMING AGENDA ITEMS OF COUNCIL INTEREST: 

COUNCIL DISCUSSION: 

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

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:

• Amend Recreation Center Update
• Parks and Recreation Report
• 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.

🔸 Tuesday, September 2nd

Community Development Board Meeting

3:00 - 4:30 pm, Beartooth Room, 5th Floor, New City Hall, 316 N. 26th St.

City Zoning Commission

4:30 - 5:30 pm, Council Chambers, 5th Floor, New City Hall, 316 N. 26th St.

Billings City Council

5:30 - 11:00 pm, Council Chambers, 5th Floor, New City Hall, 316 N. 26th St.

🔸 Wednesday, September 3rd

Human Relations Commission Meeting

3:00 - 4:00 pm, Billings Unitarian Universalist Fellowship, 2032 Central Ave.

Aviation and Transit Board Meeting

4:00 - 5:00 pm, Admin Conf. Room 217, BIL Airport, 1901 Terminal Cir.

City Board of Adjustment Meeting

4:30 - 6:00 pm, Council Chambers, 5th Floor, New City Hall, 316 N. 26th St.

🔸 Thursday, September 4th

Council Operations Committee

4:00 - 5:30 am, Beartooth Room, 5th Floor, New City Hall, 316 N. 26th St.

// 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.

The DEADLINE for applications is September 1, 2025.

BOARD OPENING (SEATS)

Tourism BID (2)

Community Development Board (1)

Housing Authority—Family (1)

REQUIREMENTS

Live in Billings (Hotel Industry)

Live in Billings

Live in Billings (Res Comm)

// IN CASE YOU MISSED IT - AI SUMMARY AND SOURCE LINKS

In this section we re-visit last week's meeting, providing:

• an AI summary (YouTube transcript analyzed by Claude's Sonnet 4) 
• links to the Community 7 video 
• draft minutes produced by city staff (if available) 

We'll revise and edit when necessary for clarity, brevity, and to avoid inaccuracies, which are sure to happen on occasion. And, considering the difficulty Council has had with audio feeds, it's likely that some comments or segments of the meeting will be missed in the video transcript.

Billings City Council Business Meeting - August 25, 2025

Overview

The City Council addressed a packed agenda focused primarily on budget and financial matters for fiscal year 2026. The meeting featured extensive discussions on property tax levies, wastewater rates, and budget amendments, along with routine items like park assessments and urban renewal district governance. Two councilmembers were excused - CM Kendra Shaw (recovering from back surgery) and CM Scott Aspenlieder, while CM Daniel Tidswell participated online despite initial technical difficulties.

Key Actions and Votes

• Approved wastewater wholesale rates for FY2026 (unanimously) - Following months of negotiations with PAR Montana and Phillips 66 refineries, council approved rates that will result in $1.1 million less revenue than originally projected
• Set annual property tax levies at 244.39 mills (7-2) - Approved after contentious debate and three amendments by Council member Owen to separate charter-authorized levies from state-mandated HB231 compliance levies
• Approved FY2026 final budget (7-2) - Budget includes authority to pay down debt on the new city hall building with proceeds from selling the old city hall and Park One Retail
• Approved all park and road maintenance district assessments (unanimously)
• Created advisory committees for three urban renewal districts (all unanimous)
• Approved street name change from Leatherneck Lane to Community Place (unanimous)

Notable Quotables

Council member Kennedy on Officer Cale Gullett [who was struck by a drunk driver while on duty, apprehended the fleeing suspects, went to the hospital for treatment, then returned to complete his shift]: "This is an exemplary product that we have with the Billings Police Department. Officer Cale Gullett needs to be recognized by this council."

Mayor Cole on government exemptions: "I never like these things because it always seems like government ought to live by the same rules that we make for everybody else."

Council member Owen on the tax levy restructuring: "I think it's important that we retain flexibility to implement HB231 as we continue to get guidance from the state."

Council member Neese on wholesale vs. retail rates: "Here we have commercial businesses in town paying a much higher rate... maybe we're not getting enough pre-treatment ahead of time."

Public Input

Kevin Nelson addressed traffic enforcement concerns, citing recent accidents including one where his wife's car was totaled and another involving a mother with four children. He advocated for increased traffic enforcement funding, stating: "What if we had additional cops on the street absolutely enforcing these traffic laws? How many people would not have to suffer through that?"

Representatives from PAR Montana and Phillips 66 refineries spoke in support of the negotiated wastewater rates, with PAR's representative noting they "greatly appreciate the time and effort by the city staff to listen to concerns."

Meeting Statistics

• Duration: Approximately 2 hours and 25 minutes
• Most active speakers: Mayor Cole (as chair), Council members Owen, Neese, and Kennedy had significant participation
• Attendance: 8 of 10 council members present (2 excused, 1 online)
• Public speakers: Minimal public participation beyond Scouts visiting and the refineries' representatives

Other Notable Items

Two council initiatives were announced for future consideration: Council member Kennedy's proposal requiring department heads to live within city limits, and Council member Rupsis's initiative on addressing aggressive driving and vehicular noise complaints.

The council also discussed creating a memorial plaque in the new city hall building to honor those who died from COVID-19, as the building was largely funded with federal COVID relief dollars.

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