The legislation upon which hopes of funding One Big Sky District were pinned failed to pass through committee to the floor of the Senate last week. SB 340, which would enable 406 Impacts Districts, tied in the Senate Taxation Committee, effectively killing the bill.
The action followed a hearing over three hours long, in which many people testified in support of the bill, citing its potential to improve economic development. They cited the need to encourage young people to remain in the state and to attract others to the labor market, by creating opportunities and amenities that would be competitive with other markets. Proponents came from Billings, Great Falls, Missoula, and Bozeman.
Only a handful of opponents voiced their opposition in the hearing, with most indicating that they did not oppose advancing economic development, but doubted the efficacy of the funding mechanism outlined in SB 340.
Senators asked very pointed fiscal questions about the financing and the level of debt that might encumber the state as a result of the legislation. What if three or four cities launched 406 Impact Districts, how much would that cost the state, they queried. It was also questioned where TIF (Tax Incentive Funds)to pay back potential bonds would come from, if the developer was essentially being refunded his property taxes – there would be no future revenues to the TIF from the new development.
The bill was introduced by Senator Roger Webb, (R), Billings, who expressed frustration and disappointment with its failure.
One of the primary proponents of OBSD, the director of Big Sky Economic Development, Steve Arveschoug said, “…that does not mean the work will stop. Our State needs a tool to incentivize development and growth in our communities. …We have work to do to set the stage for another legislative effort to build new economic development tools, and gain support for the redevelopment of our civic core.” He vowed their continuing efforts to reevaluate strategy with other economic development agencies in the state, and in moving forward development plans for OBSD, suggesting the possibility of using TIF dollars and looking at other options.
