1 Penny Represents $1 MILLION

1. 1 Penny Represents $1 MILLION • A Tax Increment Financing District is Born in Billings in 1976 • The roughly $4.6 Million in TAXABLE value (SEE PENNY PILE ABOVE) was on the decline and needed PRIVATE reinvestment supported by public investment. • 4 Parking structures were built, surrounded by massive private construction – all was well! • The $4,630,534 BASE TAXABLE VALUE (see pennies) was sure to grow… and it did!

2. Then the Plan was basically forgotten until 1997 when the total taxable value of the district was, roughly, equal to onlyTHE ORIGINAL BASE VALUEAND NO MORE! Roughly $4.6 MILLION TOTAL TAXABLE VALUE OF THE ENTIRE DISTRICT Leaving an increment near zero!

3. In 1997, the group that would become, the Downtown Billings Partnership (DBP) brought an old idea back to NEW life and proposed the Framework for Downtown Billings be added to the Urban Renewal Plan of 1976Remember the total taxable value of the 1976 district was worth no more than the base established in 1976We really had nothing to loose and everything to gain… and gain we did!

4. Starting in 2000, the DBP, with City Council approval, began several “incentive” programs… And almost $46 MILLION PRIVATE DOLLARS! And began rebuilding the tax base! We took roughly $9 MILLION TIFD Dollars and

5. That $55 MILLION DOLLAR Investment (comprised of over 200 small to large projects), after 7 years, took the Total Taxable Value from…

6. TOTAL TAXABLE VALUE OF 1976 TAX INCREMENT DISTRICT From roughly $4.6 Million in 1997 to… Almost $8 Million in 2008!

7. But WHAT IF…There was no TIFD? • Development most likely would have continued OUTSIDE of the downtown – but with a much smaller general fund due to core tax base decline. – Thus HIGHER Development Costs! • Downtown Taxable Value would have continued to DECLINE as buildings emptied and fell from the tax rolls. • Using only a very gradual 1.9% decline per year from 1976 to 2008… Downtown Taxable Value would be worth less than 2 MILLION!

8. …without TIFD Billings would look very different! Without TIFD Without TIFD WITH TIFD WITH TIFD

9. …without TIFD Billings would look much different! Without TIFD WITH TIFD

10. …without TIFD Billings would look much different! Without TIFD WITH TIFD

11. …without TIFD Billings would look much different! Without TIFD WITH TIFD

12. …without TIFD Billings would look much different! Without TIFD WITH TIFD

13. …without TIFD Billings would look much different! Without TIFD WITH TIFD

14. …without TIFD Billings would look much different! Without TIFD WITH TIFD

15. …without TIFD Billings would look much different! Without TIFD WITH TIFD

16. …without TIFD Billings would look much different! Without TIFD WITH TIFD

17. …without TIFD Billings would look much different! Without TIFD WITH TIFD

18. Montana’s Urban Renewal Law Works!