Photo by Matt Ehnes | Jared’s Detours

City Commissioners approved tax increment financing for the Downtown Development Partnership during their May 7 meeting.

Commissioners voted unanimously to approve the use of up to $110,750 in downtown TIF dollars for operating costs for fiscal year 2024, the current fiscal year, and up to $117,450 for fiscal year 2025, which begins July 1.

The Downtown Development Partnership includes NeighborWorks Great Falls, Great Falls Development Authority, Great Falls Business Improvement District, Downtown Great Falls Association, City of Great Falls, Great Falls Public Schools, Great Falls Area Chamber of Commerce, Neighborhood Council 7, the city’s Parking Advisory and Historic Preservation Advisory commissions, Cascade County and other downtown advocates.

The DDP acts as the recommending body to the City Commission for downtown TIF requests and the commission reviews those requests for final action.

In this case, the DDP is the applicant and the group approved the request for funds during their March meeting.

During the May 7 meeting, City Planning Director Brock Cherry said that in terms of the taxable value and employees per acre downtown compared to other areas of the city, “the numbers are quite staggering. The economics of place, sometimes we like to over simplify.”

Brett Doney, GFDA director and DDP member, congratulated the city on completing the Civic Center facade project, which he said was made possible without putting strain on taxpayers because of the investment in the downtown TIF district that generated increment in the district.

There was no other public comment on the request.

Commissioner Shannon Wilson said that when she came back to Great Falls in 2012, “downtown was pretty dead” and the partnership members had done a lot since to revitalize the areas.

Commissioner Joe McKenney said that “a downtown really is a flagship of a community and it’s either positive or negative.”

For too many years, downtown was blighted, he said, but “we have turned the corner. It’s exciting to take people downtown.”

Commissioner Rick Tryon said he agreed with the progress downtown but that there are still safety issues that need to be addressed.

He said he still hears of people who are afraid to go downtown, and while he’s optimistic, he said the Great Falls Police Department needs resources to address those concerns.

For the current fiscal year, DDP requested:

• $18,250 in DDP operating support, including including $500 for membership in the International Downtown Association; $2,500 for enhancements to the Explore Downtown Great Falls website; $4,000 in advertising; $11,000 for learning through participation in the National Main Street Center annual training event, the annual Montana Downtown Conference and online webinars; and up to $250 for miscellaneous operating expenses.
• $34,000 in salary and $6,000 in benefits for 50 percent of direct costs of of the downtown business development officer, a GFDA employee; the BID and GFDA pay the remaining 50 percent of costs, each paying 25 percent and GFDA covers all of the associated costs.
• $52,500 for project support: $50,000 for ArtsFest Montana and $2,500 for the downtown traffic signal box art project.

The DDP request for the next fiscal year is:

• $20,250 in DDP operating support including $500 for membership in the International Downtown Association; $2,500 for enhancements to the Explore Downtown Great Falls website; $5,000 in advertising; $12,000 for learning through participation in the National Main Street Center annual training event, the annual Montana Downtown Conference and online webinars; and up to $250 for miscellaneous operating expenses.
• $38,000 in salary and $6,700 in benefits for a total of $44,700 for the downtown business development officer, a GFDA employee; the BID and GFDA pay the remaining 50 percent of costs, each paying 25 percent and GFDA covers all the associated costs.
• $52,500 in DDP project support: $50,000 for the ArtsFest Montana and, $2,500 for the downtown traffic signal box art project.

Commissioners approved $100,625 in TIF funds for the DDP for fiscal year 2023, which ended June 30, 2023.

Beginning in fiscal year 2023 the DDP requested $47,475 for ArtsFest MONTANA 2022. The estimated cost associated with each artist participating in ArtsFest is between $7,550 and $10,550. The DDP requested TIF funds to cover approximately 50% of the costs for all artists.
The fiscal year 2023 application included a request of $34,000 to pay for 50% of the direct costs of the Downtown Business Development Officer (DBDO). The Business Improvement District (BID) and the Great Falls Development Authority (GFDA) split the remaining 50% of direct costs.
The DDP also requested $17,150 in operating support, which included $500 for membership in the International Downtown Association, $5,000 for enhancements to the Explore Downtown Great Falls website, $2,850 in advertising, $8,200 for participation in the National Mainstreet Center trainings and webinars, and up to $250 for miscellaneous operating expenses.

The commission adopted the Downtown Urban Renewal Plan in 2012, which provides guidance for identifying projects eligible for TIF funds, and references the Downtown Master Plan, which outlines 82 strategies for redevelopment of the downtown core.

According to city staff, the DDP’s funding request fulfills a goal of identifying and supporting an organization that leads and champions downtown revitalization.

“The DDP was created to fill this role and has been successful in fostering new development and redevelopment downtown and implementing the goals, objectives and strategies identified in the [Downtown Master Plan],” according to staff.

The renewal plan also listed goals of identifying and attracting high paying employers and jobs to downtown, and supporting existing and attracting new commercial and retail businesses, which are the primary duties of the downtown business development officer, partially funded by the TIF request, according to city staff.

Staff found the DDP’s request eligible for TIF funding and recommended approval.

“Unlike in the city’s other TIF districts, the DDP provides invaluable partner assistance to the city in implementing the goals and projects contained within the adopted Downtown Urban Renewal Plan. Providing annual funding to the DDP is a unique opportunity not found in other TIF districts to support a partner organization to implement revitalization efforts that clearly benefit the city as well as larger community as a whole,” according to the staff report.

The downtown TIF has a current cash balance of $4,632,890 and outstanding obligations of $3,817,846. Of those outstanding obligations, approximately $2,558,443 are expected to be paid out within one year, according to city data.

The downtown TIF receives about $2,000,000 annually of tax increment revenue.