Dear Editor,
I appreciate the opportunity to offer a response and clear up some inaccuracies from the January 18th One Big Sky District (OBSD) article.
ONE Big Sky District is the most significant project our community or state has ever undertaken. Complex projects create questions and I’d like to clarify some important points:
The $2.5 billion estimate is for the benefit, the added local and state revenues, brought about by 30 years of growth resulting from the OBSD plan. The potential public investment in the plan, as it is currently written in the draft legislation, is dependent on how much private investment is made in the district.
For instance, if private investment in the district reaches $300 million, the legislation “turns on” and the state and city contribute $75 million apiece over 20 years, or $3.75 million each annually. If private investment gets to $450 million, the state and city contribution increases to $100 million apiece. And if cumulative private investment reaches $650 million, the state and city contributions increment to $125 million, where they are capped, regardless of additional private investment. The January 18th article claims the public sector will contribute $350 million. In fact, the cap is $250 million between the state and city. With a cap of $250 million in public monies over the life of the district, and estimates of $2.5 billion in additional revenue to the public sector, simple math tells that we’re looking at a 10-1 return on public investment, that would not be realized but for the private investment in OBSD.
Lastly, the public contribution in the OBSD plan is based on growth of tax revenues, driven by meaningful private investment. There are no prescribed increases to tax rates, nor the need to enact a new tax such as the local option.
To sum up: (1) the private sector leads, bearing the risks of building both private developemnet and civic infastructure;
(2) The public sector’s return investment is estimated at 10-1;
(3) A tax increase is not needed;
(4) the public contribution is capped, even as private investment continues into OBSD.
Billings, and the state of Montana, have an incredible opportunity to attract private investment to our communities, creating jobs the next generation of workforce seeks.
Let’s relieve the burden on taxpayers by growing our econonmy with new private investment, and without new taxes. Let’s support Big Sky District!
Daniel Brooks,
Billings Chamber
of Commerce
