City increases TIF funding for West Bank infrastructure
Commissioners voted to update a tax increment financing award for a West Bank project during their Dec. 19 meeting.
Commissioners repealed the original resolution awarding $972,373 in TIF funds awarded in January for infrastructure in West Bank Landing and approved a new one, increasing the amount to $1,931,000.
TIF funds can be used to reimburse private entities for public improvements, such as infrastructure.
TIF funds are the tax increment on improvements in specific districts established by commissioners and those funds are held in a TIF district fund to be reinvested into the district.
TIF districts and their funding are governed by state law.
Commissioners adopted the West Bank Urban Renewal District Plan in 2007, establishing the district to help spur redevelopment of the area.
Talcott Properties has been involved in that redevelopment with West Bank One and West Bank Landing.
The next phase of development in West Bank Landing includes three lots.
Two of the lots have identified users, Towneplace Suites hotel and Panda Express.
The original resolution would have reimbursed Talcott up to $972,373 for the design and construction of public water and sewer mains, private storm mains, additional private utilities, environmental remediation and a new private drive approach to the development from 3rd Street Northwest, according to city documents
After commissioners awarded the funds, Talcott solicited bids for the project that came in higher than anticipated so he asked the city to increase the TIF award.
City staff and outside counsel verified that the projects are eligible for TIF funding, according to staff, who recommended approval.
City Commission to consider $972K TIF request for West Bank Landing
To receive the reimbursements, the developer has to provide proof of completing the eligible projects and comply with the development agreement with.
During the Dec. 19 commission meeting, Brad Talcott said that the West Bank redevelopment is how TIFs are supposed to work and that Great Falls is “the poster child for the state.”
He said inflation and the high volume of construction in the community are among the drivers of the increased project costs.
The cash balance of the West Bank TIF in late December was $1,069,511. Based on the current assessed valuation of properties in the district, the West Bank TIF fund receives an annual increment of $885,000, according to the city finance department.
After subtracting debt service for bonding and other annual expenses, the city finance department estimates the fund will have $1,603,017 on June 30,2024, giving the city enough cash on hand to reimburse Talcott for the original award of $972,373 during 2024.
The city will reimburse the applicant for the additional $958,627 as funds become available in the TIF district, according to city staff.
Talcott has previously received commission approval for $4,571,135 of West Bank TIF funds, and the increased funding, brings the city’s total TIF commitment to Talcott to $6,502,135, according to the city finance department.
