Resort Tax approves budget addition for hiring financing district consultants
By Jen Clancey STAFF WRITER
Big Sky Resort Area District will hire consultants to complete reports for a potential creation of a Targeted Economic Development District, or TEDD, in Big Sky. On June 10, Resort Tax amended its budget to attach $200,000 for the hiring effort, a result of discussions about how to fund local infrastructure projects.
A TEDD, which couples with a tax increment financing district, or TIF, would help fund transportation, water and sewer, and wildfire management—priorities that Kevin Germain, board director, listed in the meeting. How a potential TEDD/TIF in Big Sky could look—from boundaries to timeline—is still in discussion, but board members state it is an important tool to find infrastructure projects, especially after contributing to initiatives like the Cold Smoke housing development.
“That used a lot of our power,” Germain said. “And so when we look at the financial resources that Resort Tax has, it’s very limited to address these major, major community challenges that we see coming down the pipeline.”
Among those costly projects is a remaining $10 million needed for a major canyon sewer project and a failing septic system in the Firelight neighborhood. To find a solution, BSRAD and the Big Sky Chamber of Commerce, Big Sky Community Housing Trust and water and sewer entities have met in a legislative subcommittee to discuss finance tools.
“ And so as we’ve been working with this legislative committee, the tool of targeted economic development districts that use tax increment financing has risen to the top as something that our community should really, really explore,” Germain said.
TEDD and TIF have been used in Butte-Silver Bow and Missoula counties, Kalispell and Bozeman. Locally, the Gallatin Canyon Water and Sewer District has faced challenges for its proposal of a TEDD/ TIF to fund part of its $50 million project, despite leaders saying it’s a key part of funding for the project.
BSRAD shared a similar sentiment on June 10 about a broader TEDD/TIF idea that could support more Big Sky projects, including the canyon sewer. Board member John Zirkle voiced his reasoning for the upfront cost of $200,000 for the district.
“We understand that $200,000 is a lot. You know, that could be an appropriation for another organization, so we don’t take it lightly,” Zirkle said. He shared that projects outlined in Big Sky’s Capital Improvement Plan have price tags that Resort Tax can’t cover on its own.
“We’ve been looking at where [the] meaningful dollars [are] out there so we can get a lot of this infrastructure done. And this is it,” Zirkle said. “We hope that with the success of efforts like SB260 and the housing infrastructure process that you can trust us with these dollars, for them to come back into the community in a meaningful way.”
Other approved budget changes on June 10 included $95,000 for the BSFD Interlocal Agreement after BSRAD agreed to provide further funding to the fire department, and $150,000 set aside for the Big Sky Transportation District, as BSRAD expects a request from the local transportation entity to help fund a staff position in Big Sky.
Plans and priorities for a potential TEDD/TIF are expected to be discussed in future BSRAD meetings.
