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Billings council conditionally approves $745,000 TIF for Old Billings Hardware with construction timeline requirement
Summary
After lengthy debate over delays and financing, Billings City Council approved up to $745,000 in tax‑increment financing for the Old Billings Hardware mixed‑use redevelopment, adding a condition that 80% of construction must be complete by March 30, 2027.
Billings City Council voted to conditionally approve up to $745,000 in tax‑increment financing (TIF) for the Old Billings Hardware mixed‑use redevelopment at 2802 Montana Avenue, attaching a new timing condition aimed at preventing further delay.
The council added a requirement — moved by Council member Kennedy and adopted as an amendment — that the project reach 80% construction completion by March 30, 2027. Randy Hafer, representing the developer, told the council: "My expectation is that we will be starting construction in quarter 1 2026 and the construction time period will be 10 to 11 months." Council members pressed for measurable milestones after several years of delay.
The developer team and Downtown Billings Partnership staff told the council the project has National Park Service approval for historic tax credits and that construction documents are roughly 90% complete. Hafer said financing discussions are underway and that a prior commitment from First Interstate Bank lapsed when prices rose, but that lenders remain engaged. "We have all the pieces moving that will allow us to get the financing finalized," he said.
Council members who voted in favor emphasized downtown activation and historic preservation. Council member Ripsis, who moved the main motion, said the project would restore a long‑vacant building and urged placing clear contractual deadlines in the development agreement. Opponents sought firmer proof of bank financing and clearer cash‑flow projections; some members warned against repeated extensions without progress.
The final approval was conditional: staff will draft a development agreement that incorporates the 80%‑by‑March‑30‑2027 milestone and related check‑ins and remedies. Under the terms discussed, reimbursement through the TIF program becomes available only after project completion and would begin in fiscal year 2028 if the project finishes in fiscal year 2027.
Next steps: staff will finalize the development agreement with the developer and Downtown Billings Partnership; the council signaled it expects regular updates on financing and schedule.
