The Billings City Council is considering expanding the South Billings Urban Renewal District, the same group that is funding a new rec center and is planning for a new South Side pool.
Many are on board, but one resident says the use of the tax increment finance (TIF) districts (which is what the South Billings district is) may be going against the will of voters.
Watch TIF district story here:
The expanded TIF district would include more of South Billings.
"There's a lot of things we can do in that expansion area to make it a better place for Billings and the residents,” said Dick Zier, consultant for the South Billings Urban Renewal Association (SBURA).
Zier likes the idea of a bigger district.
“SBURA probably is the most active in the state, maybe,” Zier said. “And, we've heard from several people that we have the best TIF district in the state, but I don't have anything to compare that to, but we are active.”
One Billings man told MTN News he's worried that the expansion of TIF districts comes at the expense of other services.
“We'll just use TIF funds and the problem with that is then everyone else pays,” said Kevin Nelson.
Nelson has attended many meetings warning the boards about tax money that goes to the TIF districts. In Montana, TIF districts are designed to boost development in blighted areas by providing taxpayer money for developers for specific projects, aimed at public improvements. The funding is based on the increase in property value— the increment— realized from the improvements in the district.
Nelson argues expanding the district will take tax money away from other city needs, along with needs in other tax districts, including Yellowstone County, Billings School District 2, and the Elysian School District.
“Taking away from the specific areas puts it into just a tax increment fund,” Nelson said. “And then from there it can be used for anything from rec centers to streets to sewer projects.”
The expanded tax increment finance district would include more of South Billings, including South Park, and the pool could be one of the projects. Supporters are also talking other possibilities.
“Maybe tear down some of the houses that are dilapidated on North 27th Street, turn into a nice commercial property,” Zier said. “It would be a better entrance into our city. That's probably our main entrance into the Billings.”
And while the $20 million in TIF money for the basketball courts and the $16 million in private money for the ice arena is far less than $143 million bond that voters turned down in 2023, Nelson still says it's not something taxpayers want.
“They could have resized that down to a more manageable bond and asked the voters again for the very same thing," he said.
Nelson and Zier agree on the value of expanding the district.
The Billings City Council holds its first hearing on the proposal Monday night.
