BILLINGS — Three Billings nonprofits now have to go back to the drawing board after Billings City Council denied Monday their applications for public financing for development, known as tax-increment financing (TIF).
The council denied the TIF applications of the Alberta Bair Theater as well as the Billings Depot. The Babcock Theater's TIF application was tabled for the future.
Alberta Bair was seeking $83,000 for a series of safety improvements, including installation of concrete bollards outside the building to protect pedestrians and theater attendees. The Billings Depot sought $80,000 to repair deteriorating concrete walkways and sidewalks. The Babcock was hoping to receive $300,000 for safety improvements to protect against liability, including sidewalk repairs, marquee improvements, a new balcony safety railing, demolition of an aging brick chimney, exterior doors and entryways and new mop closet stair supports.
The news wasn't what the executive director of The Alberta Bair, Jan Dietrich, was hoping to hear when she was at Monday night's city council meeting.
"A little frustrating to go back to the drawing board and have to reapply again," Dietrich said Monday.
The theater made a recent request for money based on a Crime Prevention Through Environmental Design study by the Billings Chamber of Commerce and Downtown Billings Association.
"They made some recommendations that we could do to improve the safety of the theater," said Dietrich.
Several incidents within the past couple of years have happened too close to home. One occurred in September 2023 when two vehicles collided at the intersection of Third Avenue North and North 27th Street.
Dietrich described another incident that happened more recently.
"In front of Spitz (the restaurant across the street), there was an accident. A couple girls were intoxicated and ran into their bollards and took them out. And it's a good thing that no one was on that sidewalk at that time," Dietrich said.
On the other side of downtown at the Billings Depot, executive director Michelle Williams is looking at other options.
"It's a little disappointing, a little frustrating," Williams said.
Time is a factor for the Depot as they have a deadline. The nonprofit already has a $414,000 state Department of Commerce grant committed to the project, but it requires matching funds from elsewhere.
"This grant that we have, we have a deadline. The tricky thing is with this grant, there is a 20% match requirement," said Williams.
The Depot received a historic preservation grant to pay for capital improvement projects.
"If we don't meet the deadline, we lose all of those funds and we can't risk losing $414,000 just waiting for a decision," Williams said.
This means the Depot is taking matters into its own hands, hoping the community will rally around them as they search for the funds to continue making improvements.
All three nonprofits have received TIF money in the past but president of the Downtown Billings Partnership board Sean Lynch said this time, it would be an investment with no return.
"TIF is based on tax increments. So a city-owned building pays no tax. So there is no return on these investments that come in there. So this is we are giving that money with no return," said Lynch.
Supporters of TIF districts say they're the only tool for local governments to boost economic development, particularly in a state with no sales taxes. TIF money is designed to improve neighborhoods in blighted areas. Critics, however, worry that program is too much of a giveaway to developers and take tax dollars away from public services.
Lynch said he is more interested in finding a long-term solution.
"I just think all of us as taxpayers that pay into any fund that is part of the city or county should put more pressure on our elected officials to try to figure out how to maintain things. Instead of trying to take money from other areas when they can't figure it out," Lynch said.
For Dietrich, it becomes another waiting game as they prepare to submit another TIF application.
"You know, if something would happen, it's a huge liability for the city. And, you know, hopefully that won't," said Dietrich.
