Mixed Use Development Project

Located east of Billings downtown in the EBURD districtOffering is a shovel ready development project within the EBURD TIF district which includes a 17,532 SF lot and a fully completed architectural plan set with approved permitting. Current permit expires June 1, 2024 so new owner would need to resubmit with existing plan set. The project is located within the EBURD Tax Increment Finance District and eligible for TIF funds. The pending 18,999 SF mixed use development project consists of 4,606 SF of main floor office space, and 16 apartments throughout the main floor and a 6,375 SF second floor and 6,375 SF third floor offering a mix of studio, 2 bed/1 bath and 1 bed/1 bath apartment units. The current owner/developer has a pending LOI on 1,200 SF of main floor office space and a signed LOI and draft lease with a local non profit to masterlease all 16 apartments upon completion of the project. The total project cost will vary based on the developer, contractor, how much work is self performed, etc. but the current developer estimates the site work and hard costs will between $4-5MM ($211-263/SF) which does not include $325k for the land and architectural plans and $40k for new footers. Asking price for commercial development lot is $175,000 and $150,000 for the architectural projects. The projected construction expense of $4-5MM includes all civil work related to site work, utilities and landscaping. The project qualifies for TIF funds via the standard application and grant/repayment process. The standard allocation of TIF funds granted for a project is 16.7% of the total project costs (site acquisition, site work, hard costs, soft costs) which equates to $668,000 up to $835,000 of TIF monies depending on total project size. These funds would be reimbursed to the new owner/developer upon completion and receipt of Certificate of Occupancy of the project for reimbursable expenses. While the TIF committees and Montana Code Annotated suggest a 16.7% ratio (1/6), the new owner/developer could potentially ask for money in excess of the standard ratio.