Downtown Development Update

BILLINGS

2012

DOWNTOWN

DEVELOPMENT UPDATE

Staff Meet the Downtown Billings Alliance staff Pages 6-7 Future Plans Downtown Billings Alliance plans for future success Page 8 Projects City of Billings and Downtown Banks Cooperate on Revolving Loan Fund; The Empire Mixed Use Project; Downtown to Measure and Track Analytics in 2013 Page 10 Entrepreneurship Downtown Billings Alliance supports entrepreneurship Page 11 The Downtown Development Update is a special advertising section of The Billings Gazette

Sales and Marketing Director Dave Worstell Special Sections Coordinator Linsay Duty Advertising Sales Dan Berry Section Designer Christine Cleveland Access the Downtown Development at www.billingsgazette.com/ specialsections Cover photos: Bob Zellar, Gazette Staff (left); DBA (center); Courtesy photo (right) Larry Mayer, Gazette Staff (background photo)

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Downtown Billings Association Board of Directors Fiscal Year 2013 ONE-YEAR TERM JUNE 30, 2013

Debbie Singer NorthWestern Energy P.O. Box 80330 Robert “Biff” Hagstrom Billings, MT 59108 (406) 655-2550; Christos Therapy Cell (406) 670-3828 1500 Poly Drive, Ste. 201 deborah.singer@northwestBillings, MT 59102 ern.com (406) 661-1005 biff@biffthisdesign.com Ziggy Ziegler VP Mike “Bebo” Bilansky Membership Stella’s Restaurant Anderson Management and Bakery Group 2525 First Ave. N. 2923 Montana Ave. Billings, MT 59101 Billings, MT 59101 (406) 248-3060; (406) 256-6551; Cell (406) 672-6981 Cell (406) 671-6871 jazsaz33@msn.com mikeb@andersonmgt.com Denice Johnson neecee’s 2821 Second Ave. N. Billings, MT 59101 (406) 248-1722 denice@neecees.net Kris Fairlee, Treasurer First Interstate Bank P.O. Box 30918 Billings, MT 59116 (406) 255-5139 kristin.fairlee.@fib.com Dana Bishop, VP Advocacy 208 Pueblo Street Billings, MT 59102 (406) 652-1575 danabish@hotmail.com Jim Nymeyer Barjon’s Books 223 N. 29th St. Billings, MT 59101 (406) 252-4398 jimnymeyer@yahoo.com

TWO-YEAR TERM JUNE 30, 2014 Maisie Sulser High Plains Architects 2720 Minnesota Ave. Billings, MT 59101 (406) 896-0250 msulser@highplainsarchitects.com Chris White Albertsons 611 N. 27th St. Billings, MT 59101 (460) 672-0425 Chris.White@albertsons. com William Wood, Member at Large Alberta Bair Theater P.O. Box 1556 Billings, MT 59103 (406) 256-8915 x203 woody@albertabairtheater. org

Gail Harmoning Anytime Fitness 2702 Montana Ave. Billings, MT 59101 (406) 294-1070 gharmon1327@live.com Matt Robertson NAI Business Properties 3312 Fourth Ave. N. Billings, MT 59101 (406) 671-1158 mrobertson@naibusinessproperties.com Kim Schweikert, VP Marketing and Events Easter Seals/Goodwill 1537 Ave. D, Ste. 200 Billings, MT 59102 (406) 252-9600 kimblerlys @esgw.org Steve Bruggeman, Chairman of the Board Valley Federal Credit Union P.O. Box 23309 Billings, MT 59104 (406) 698-4118 sbruggeman@valleyfcu.com Julie Burton Billings Clinic 2917 10th Ave. N. Billings, MT 59101 (406) 657-4628 jburton1@billingsclinic.org

DBA AD HOC BOARD MEMBERS City of Billings Parking Division Chris Mallow P.O. Box 1178 Billings, MT 59103 (406) 657-8412 mallowc@ci.billings.mt.us Billings Chamber of Commerce/CVB Tom Krause P.O. Box 31177 Billings, MT 59107 (406) 245-4111 tom@billingschamber.com Yellowstone Valley Farmers Association Shelly Gayvert P.O. Box 23381 Billings, MT 59104 (406) 855-1299 dgayvert@imt.net Montana State University Billings John Walsh 112 N. Broadway Billings, MT 59101 (406) 896-5888 jwalsh@msubillings.edu Downtown Billings Partnership Greg A. Krueger 2815 Second Ave. N. Billings, MT 59101 (406) 294-5060 gregk@downtownbillings. com

Business Improvement District Board of Directors Fiscal Year 2013

Michelle Cormier, 4-Year Term Players Paradise Casino Downtown Property: 222 North Broadway Billings, MT 59101 (406) 259-4430 michelle@cormier.com Billie Ruff, 1-Year Term Property Owner Representative, Travel CafĂŠ 313 North Broadway Billings, MT 59101 (406) 259-0999 bjruff@travelcafeonline.com Brad Anderson, 3-Year Term Anderson Management Group 2923 Montana Ave. Billings, MT 59101 406-256-6551 brada@andersonmgt.com

Mike Schaer, Vice Chair, 2-Year Term Computers Unlimited 2407 Montana Ave. Billings, MT 59101 (406) 255-9510 mike@cu.net

Stop in and see how Steve and Jeremiah can make Great Things Happen

Norman Miller, Secretary/ Treasurer, 1-Year Term Miller Building 4507 Palisades Park Drive Billings, MT 59106 (406) 651-9260 nlzm2000@yahoo.com

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for you.

Michael Gray, Chairman of the Board, 4-Year Term G&G Advertising Third Ave. and North Broadway Billings, MT 59101 (406) 294-8113 x.112 mgray@gng.net

(Courtesy of DBA)

Steve Wahrlich, 2-Year Term Best Western Clocktower Inn 2511 First Ave. N. Billings, MT 59101 (406) 238-1793 sw@bwclocktowerinn.com

Rocky Mountain Bank is proud to support the revitalization of Downtown Billings and the Billings Community.

Stephen Casher

Jeremiah Rouane

Market President 406.655.2797 scasher@rmbank.com

Vice President, Commercial Banking 406.655.2794 jrouane@rmbank.com

Member

FDIC

Great Things Happen!TM

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Downtown Billings Partnership, Inc. Board of Directors FY 2013 (as of July 1, 2012) OFFICERS/EXECUTIVE COMMITTEE President – Matt Robertson Vice President – Jock West Immediate Past President – Steve Wahrlich Secretary – Jeremiah Young Treasurer – Steve Tostenrud

BOARD OF DIRECTORS Michael Gray – BID (406) 294-8113 mgray@gng.net Don Olsen – PAB (406) 259-7123 dono@o2architects.net

Joni Harman – at-Large Member (6/30/2013) (406) 690-2002 joni.harman@gmail.com

Connie Wardell – Billings Public Schools (406) 855-5160 cwardell@usadig.com

Matt Robertson – DBA (406) 671-1158 mrobertson@businessprop.com

Jim Reno – Yellowstone County Commission (406) 256-2701 jreno@co.yellowstone.mt.us

Steve Arveschoug – Big Sky EDA (406) 869-8401 stevea@bigskyeda.org Tina Volek – City of Billings (406) 657-8430 VolekC@ci.billings.mt.us

Jock West – at-Large Member (06/30/2014) (406) 252-3858 jock@jockbwestlaw.com

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Downtown Billings Partnership, Inc. Board of Directors FY 2013 (as of July 1, 2012) Jeremiah Young – at-Large Member (6/30/2013) (406) 256-5585 rockegear@gmail.com

Vacant – at Large Member (6/30/2014)

On Hold – at-Large Member (6/30/2013) (Nelson)

Jeremy Morgret – at-Large Member (6/30/2015) (406) 655-2722 Jmorgret@stockmanbank.com

BOARD ALTERNATES Lisa Harmon – BID and/or DBA (406) 294-5060 lharmon@downtownbillings.com

Steve Tostenrud – at-Large Member Greta Besch Moen – BANKING Billings Public Schools (6/30/2015) gjbesch@gmail.com Steve.Tostenrud@fib.com

EX-OFFICIO & AFFILIATES NON-VOTING Lloyd Mickelson – Library & BCP mickelson@3dnorth.com Don Olsen – Urban Design (406) 259-7123 dono@o2architects.net Pending – Council Appointee

(Larry Mayer of the Gazette Staff)

Kim Olsen – Downtown Prop.

Own. Assn., Inc (406) 259-7123 kimo@o2architects.net

Steve Wahrlich – Immediate Past President (406) 259-5511 sw@bwclocktowerinn.com

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Downtown Billings Alliance plans for Future Success Downtown Billings boasts a great regional location and setting; a strong base of office and employment uses; a concentrated, historic Downtown core with excellent cultural amenities; and growing restaurant, entertainment and retail sectors. Downtown Billings has many assets and has taken great strides in recent years; Downtown must actively press ahead on several fronts to ensure a dynamic future. Future success of downtown Billings will require the careful linkage of many elements. Those elements include the activation of downtown as a mixed-use, 24/7 neighborhood and commerce center from the integration of regional transportation amenities, a growing medical corridor and university presence, and incredible natural amenities including the Yellowstone River and Heritage Trail. This vision, however, will not simply materialize through ad hoc implementation. Rather, it must be undertaken methodically and comprehensively.

On April 19, 2012, public and private sector stakeholders gathered for a strategy session focused on visioning for the future of Downtown Billings. Rather than develop a specific vision statement, the session was devised to focus on convening key leaders to begin a dialogue of action.

Chris Beynon, Principal with urban planners and downtown revitalization experts MIG, Inc., facilitated the session.

Two sessions focused on garnering the group’s ideas on the assets, issues and opportunities facing Downtown Billings and its present and future vitality.

The current economic drivers of downtown are: finance, government, professional services, retail, housing, entertainment, hospitality, dining, and events. Future economic drivers are likely to flow from mixed use urban residential projects and targeted employment strategies that harness Millennials, the Creative Class and Empty-Nesters interested in living in a small town urban context. These drivers cannot be sustained or expanded unless downtown is structured to absorb and accommodate substantial activity both day and night; during the week and the weekends; and when special events occur attracting substantial regional destination traffic.

Building from the foundation of assets and land use drivers, and supported by an exploration of key challenges and opportunities, the group’s input led to the creation of a series of “vision elements”. Highlighted in purple text in the circles right, these elements are the building blocks of a vision – the future that participants want to see come to fruition in Downtown Billings – which may be articulated further in upcoming phases of planning.

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Opportunity doesn’t knock on just any door. Opportunity fosters dreams and says hello to the future.

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Overall Positioning The following words and phrases describe qualities to be used in positioning Downtown Billings in the future.

Diverse – A Downtown that is economically, socially and physically varied and robust.

Center – A Downtown that is at the core of the city’s economic, cultural and tourism activity.

Quality – A Downtown that is enduring, attractive and has a distinct sense of place.

Connected – A Downtown that has strong linkages within the core and to surrounding residential neighborhoods, the Medical District, the airport and Rim, and the Yellowstone River.

Community – A Downtown that is at the heart of the city’s social and cultural life.

Natural – A Downtown that has

unparalleled access to nearby recreation and open space amenities.

Heritage – A Downtown that proudly embraces its historic past.

Urban – A Downtown that is Mon-

tana’s only true urban center of sophistication, commerce, culture and density.

Supporting Strategies Several strategy categories support the overall positioning and land use drivers. These include:

Arts and Culture

Transportation and Streetscape • Continue to explore the creation of a shuttle circulator system.

• Explore further conversion of one-way streets to two-way streets, including the 1st Avenue/Montana Avenue and 2nd/3rd Avenue couplets.

• Make Downtown a safe, pedestrianfriendly place through targeted streetscape enhancements and intersections improvements, particularly along and across key barriers such as 4th, 6th and 27th. Street furnishings, lighting, art, banners, and green infrastructure are all important components to future streetscape enhancement.

• Make Downtown a bicycle-friendly area, with a range of facilities such as bike lanes, separated bike paths, and shared streets and end-of-trip amenities such as lockers, storage and showers.

Renew | Reuse | Revitalize

Regulatory Reform • Continue to highlight and study parking demand, ratios and regulations as key components of ensuring that Downtown is easily accessible and supports a strong commercial environment.

• Ensure that zoning codes and design guidelines support the creation of a mixed-use Downtown that allows for (1) a range of medium and high density buildings, and (2) design that is memorable, scaled for pedestrian comfort, and promotes ground floor uses that activate the street.

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Top: CTA Architects Engineers, 2012 Above: Marshall-Wells Building, 1919

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Communications • Create more public art in Downtown.

• Increase public relations and • Increase the number of events and outreach efforts to “get the word activities related to arts and culture out” about Downtown and all of its to attract people from throughout the offerings. city and region.

• Create positive messages and stories about Downtown to counter Open Space negative information and imagery that is highlighted in the local news.

• Create pocket parks and plazas in • Establish “champions” who are the Downtown. spirited leaders that contribute to the • Create more natural spaces and positive messaging and atmosphere features in the Downtown core, of Downtown Billings. balancing the urban feel of the area with green recreation opportunities.

• Connect to regional trails and pathways, linking Downtown to the rest of Billings and the natural resource of the Yellowstone River.

See Future Success, page 12

248-1127

www.billingsfcu.org 760 Wicks Lane • 2522 4th Ave. N • 32nd & King Ave. W

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City of Billings and Downtown Banks Cooperate on Revolving Loan Fund In October of 2000, the Downtown Billings Partnership facilitated the approval of the “Interlocal Agreement” between six downtown banks and the City of Billings.

This agreement took the City’s existing Downtown Revolving Loan Fund, consisting of approximately $1.6 million in performing loans and used that fund as “collateral” to create an additional $3.2 Million line of credit with the banks. Thus, the program went from $1.6 Million revolving to roughly $4.8 Million.

Since 2000, the agreement has been renewed twice and amended several times.

Currently the participating banks, providing just over 14% each in available loans, are: First Interstate Bank; Stockman Bank; U.S. Bank; Wells Fargo Bank; Western Security Bank; Yellowstone Bank; and Rocky Mountain Bank.

Potential loans to redevelop downtown Billings are first reviewed by a Loan Fund Committee consisting of a single repre-

sentative for the banks, the Director of the Downtown Billings Partnership, a representative from downtown property owners and the City of Billings Finance Department representative. If the committee approves of a loan request, the terms are presented to the Billings City Council for final approval. As of today, the fund can loan up to 20% of the project cost, capped at $250,000 per loan.

The interest rate paid by the City of Billings is annually set by the City and the Banks in October. This year, the rate is 4% that can be amortized for up to 20 years but the payment schedule is based on 10 years, thus there is a large balloon payment due at the end of the 10 year term. The City charges the borrower 5% using the same terms.

Since 2000, this program has funded dozens of loans on medium to major projects in our city center. As of this year, all of those “bank funds” have been paid back and are currently available for new projects. To learn more, go to www.downtownbillings.com

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The Empire Mixed Use Project Several years ago, the Downtown Billings Partnership, Inc. facilitated the purchase of the old Empire Bar on Montana Avenue between N. 28th St. and N. 27th. The demolition of that building as well as the vacant adjacent building provided for a landscaped parking lot between the Windsor Court Building and the Northern Hotel parking garage. Almost two years ago, using Tax Increment Funds from the city center TIF district, the City of Billings purchased the Northern Hotel garage as well as the Windsor Court Building and began the planning process for a mixed use (Retail and Parking) project on that half block of land. The buysell documents allowed for the owners of the Empire Parking Lot and the Northern Hotel parking garage agreed to sell to the City at a fair market appraised price as long as they were given the option to purchase the same number of parking spaces back from the City when the garage was completed.

The City of Billings plans to begin construction of the new 540 space garage early in 2013 with a completion date early in 2014. The Northern Hotel has an option to buy back up to 187 spaces within that new structure. Also in the plans, the City intends to sell roughly 16,000 sq. ft. of cold shell retail space or spaces on the first floor facing Montana Ave. When completed the City will own over 50% of the structure and share ownership with at least two private entities.

The private sector will be required to pay taxes on their ownership, thus replacing the lost tax base when the City purchased the

land and the buildings. The City will operate the garage and intends to lease monthly spaces. Anyone interested in getting on the waiting list for these parking spots should contact the City of Billings Parking Division.

Downtown to Measure and Track Analytics in 2013 Since 1998, when the urban renewal process was restarted by the City of Billings, downtown has filled in much of the upper floors downtown with office tenants and urban residential units. In addition, dozens of new retail and restaurant businesses have well established a market for street level leased space in our city center. The Downtown Billings Partnership thinks that we are on the right track and now we need to “take it up a notch” with targeted retail retention and recruitment program.

It is very easy to tell prospective tenants how many cars will drive by their store each day but that statistic is not nearly as important to downtown shops as is the pedestrian count. Thus, the Downtown Alliance will begin the process of compiling and updating counts at several times during the day, several days during the week, and at targeted intersections and blocks.

Downtown is alive and kicking day and night with people walking here, there and everywhere. Prospective tenants want to know who they are (demographics), where they are going, and roughly how many at any given time. This information will soon be available on a development “dashboard” on our website, along with other opportunities and programs that will make downtown Billings the urban center it is destined to become.

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All dollars go to help families in the community.

Downtown Billings Alliance supports entrepreneurship!

The Downtown Billings Alliance, in collaboration with Montana State University Billings and Big Sky Economic Development, is working on a business plan competition/entrepreneurship promotion aimed at serving as a catalyst to encourage entrepreneurs to submit their business concept for consideration and to open/expand a storefront in the heart of Downtown Billings. A four-session educational business development series will be offered. Prize packages may include free rent for the first 12 months of a three year lease, advertising and marketing packages, start-up business consulting, one year business mentoring plan, free one year membership in the Downtown Billings Association.

Downtown Billings is happy to announce the launch of its new website! www.downtownbillings.com

Goals of the program:

To assist with the opening of one(1) new destination business in Downtown Billings, one(1) expansion of an existing downtown business, and one(1) cash award to one college student from MSUB or Rocky Mountain College for an exceptional business concept and plan.

1. To attract multiple new retail businesses to Downtown Billings and strengthen our already established business base. Retail businesses also include food/eateries.

2. Showcase the broad variety of business opportunities in Downtown Billings.

3. Fill available retail space with new businesses that complement the existing mix and highlight the potential for businesses to stand out.

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Downtown Parking Garages PARK 1: Located at 2912 3rd Avenue North Open to the Public M-F 5:30pm to 7:00am and at all times on Weekends and Holidays.

PARK 2: Located at 2651 1st Avenue North Open 24 Hours a Day / 7 Days a Week

PARK 3: Located at 210 North 27th Street (Facing 2nd Avenue North) Open 24 Hours a Day / 7 Days a Week

So, park your vehicle in a City parking garage and enjoy Billings’ fabulous downtown!

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Catalytic Projects The group identified several potential sites and projects to prioritize for development. Each site was selected for its ability to link existing assets, make strong connections along key streets, and stimulate additional development activity. Some sites are under public ownership and, therefore, offer the opportunity for more expedient development. In addition, some identified projects are not site-specific but are identified as critical pieces to Downtown’s future vitality that should be developed in appropriate locations.

Future Success Continued from page 8

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The Catalytic Projects include:

(Courtesy of DBA)

4th and 6th Avenues:

This fast-moving couplet of one-way streets acts as a barrier to pedestrians navigating between the Downtown core and the Medical District and vibrant neighborhood to the north. Conversion of street to two-way and/or reduction of travel speeds should be explored.

Intersections and sidewalks should be improved to promote a more pedestrian- and bicycle-friendly environment.

27th Street:

This major street should be improved in a manner similar to the 4th Avenue and 6th Avenue corridors.

Cultural Campus:

Building from the theaters and new library, there is opportunity to create a “cultural campus” or district that would establish Downtown as the City’s center of arts and culture. Branding and marketing strategies could tie together existing facilities, and future performing arts centers and other venues would be targeted to this area.

Old Federal Courthouse:

This property represents an opportunity for major redevelopment near the core of Downtown. New development could include uses that would bolster the cultural campus idea.

Open Spaces:

A range of open spaces should be created in Downtown as the area develops and becomes denser. These spaces should typically be small in size, such as pocket parks and plazas. Careful design and programming that promotes activity and “eyes on the park” will be critical.

Bicycle Facilities:

With its flat and compact nature, Downtown is an ideal place for creating a truly bicycle-friendly environment. Projects and programs, such as creation of on-street facilities, bike share programs and end-of-trip amenities, should be a part of a comprehensive study and action plan to promote Downtown biking.

Circulator:

A Downtown circulator will signal a change from having to use a car to get around the area to promoting transit as a viable alternative for workers, residents and visitors. The circulator should have easy, clear routing and frequent headways, incorporate strong signage and promotion, and directly connect key destinations.