Butte-Silver Bow staff outline TIF district activity; staff report loans, grants and industrial growth

Economic development staff presented the annual tax-increment-financing (TIF) reports for multiple districts and described active loans, awarded grants and recent development activity.

Kayla Lappin, economic development coordinator for Butte-Silver Bow, explained how TIF works and used the Cornerstone Plaza as an example: the district’s base taxable value rose from roughly $3.8 million to about $6.1 million, and the property tax for the Cornerstone parcel rose from about $584 in the base year to roughly $58,467 in 2025; staff said roughly $20,438 of that increase was collected as increment in the example. Lappin noted that increment is limited by Montana code to specific, district-eligible uses and that most jurisdictions still receive the base portion of property taxes.

Pauline Giacomino, community development financial projects manager, described URA grant and loan activity: the URA runs a reimbursable grant program (projects must be completed and paid before reimbursement), paid out approximately $1.4 million in 2025, has about $2.4 million awarded awaiting project completion, and currently manages roughly 125 active grants. She said there are 32 loans in the URA with about $7.2 million disbursed and a $4.5 million loan portfolio balance in good standing. Giacomino said the East Butte district that has sunset still has two outstanding loans ($332,000) and about $92,000 available; staff aim to close that district by the end of the fiscal year if project completion timing allows.

On the Harrison Avenue URD and South Butte TED, staff reported grant funds for active projects, development agreements paid over multiple years, and infrastructure work such as Howard Avenue and sidewalk/trail connections. For the Montana Connections TED, staff said they restarted the base year in 2023 (base ~$8.9 million; current taxable value ~$9.6 million) and listed several industrial tenants and prospects (warehouse projects, Rocky Mountain Traffic Control, Town Pump, and firms the county is engaging such as Faradayne, Sonata, Sabey, Tranpak and REC). Lappin said the district has grown from a handful of jobs historically to an estimated "over 800 jobs" now.

Commissioners asked for clarifications on loan security, URA expansion surveys and past grant clawbacks. Giacomino said BLDC underwrites loans and the county typically secures loans with liens on buildings or equipment depending on collateral; she said a grant formerly awarded for 'Uptop' was reclaimed and that reclaimed funds were returned to district funds for re-award. Commissioners requested copies of the presentation and staff committed to follow-ups on specific items including survey progress and the Belmont Center project timeline tied to closing a sunsetted district.