In a 4-1 vote, City Commissioners approved $400,000 of tax increment financing funds toward projects in the Civic Center.
Two of the projects are to update the Mansfield Theater and the other is to update the building’s elevator to continue to allow access to those with mobility limitations.
The majority of the project is being funded with state funds and the city is requesting the TIF funds to match those funds and close the funding gap.
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Tax increment financing districts are designated areas of the city where the base taxes on properties go into the general fund, but the tax revenue generated by improvements to properties in the district go into a fund that is used to fund public improvements within the district with the idea of spurring development.
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When a district expires, those funds go back into the general fund. If the district wasn’t in place, those funds would be in the general fund for use within the normal city budgeting process.
TIF districts are regulated by state law and commissioners developed its own set of criteria for reviewing TIF requests.
The city has an application and review process for all TIF requests.
The Mansfield projects will replace the seats and repair the ceiling, both projects that have long been discussed by city officials but funding wasn’t available.
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The projects had been included for potential federal COVID relief funds, but that funding was used up for other higher priority projects, including the police evidence addition, fire station repairs and the Municipal Court relocation.
City staff submitted an application in 2022 for $500,000 to the Montana State Historic Preservation Grant for the theater seats and ceiling.
The state awarded $250,000 to the city in 2023 for the project, which is an estimated total cost of $611,500 to replace the seats and $397,300 for the ceiling repairs.
City staff also requested, and received, $487,500 for the seats and $80,000 for the elevator through the Montana State-Local Infrastructure Partnership Act.
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That funding requires a minimum match from local government’s equal to 25 percent of the total project, equating to $162,500 for the seats and $40,000 for the elevator that the city must fund.
The elevator repair is an estimated $120,000.
City Commissioners approved the theater improvements and elevator projects in March for the state infrastructure funds.
The city is requesting $147,300 for the ceiling; $162,500 for the seats and $40,000 for the elevator from the downtown tax increment financing fund, as well as $60,200 in contingency, for a $400,000 total.
The downtown TIF district was established in 2012 and it took time to the district to generate enough increment to finance eligible projects within the district.
During their Aug. 6 meeting, Commissioner Joe McKenney said he was voting no for the request because he said it didn’t pass the “smell test” for some state lawmakers to use TIF funds for public projects.
Under state law, TIF funds may be used toward “the acquisition, construction, and improvement of public improvements or infrastructure, publicly owned buildings, and any public improvements.”
Projects must be identified in the urban renewal plan for the TIF district and in 2020, commissioners updated the Downtown Urban Renewal Plan to specifically identify the Civic Center as the city opted to use TIF funds for the facade project that was completed this spring in an effort to keep that additional cost off taxpayers.
At the time, some downtown businesses and groups asked the city to consider expanding its TIF program to allow private property owners the option to use some TIF funds for eligible projects.
City staff did make those requested changes, which were approved by commissioners, and several downtown property owners have been able to use TIF funds for eligible projects, which still largely focus on those with public benefits, such as fire suppression systems, sidewalk improvements, ADA compliance and facade improvements.
When commissioners were updating the Downtown Urban Renewal Plan in 2020, Craig Raymond, then the city planning director, said “I understand what people are saying when they express reservations about the Civic Center using [TIF] funds, but there’s no question in my mind when you look at the statutory language, it actually puts a preference and an emphasis on public infrastructure and facilities,” Raymond said during and Downtown Development Partnership meeting. “I don’t think anybody could argue that there isn’t a heavy emphasis on public facilities” in the statute.
McKenney said he’d been contacted by at least one local lawmaker who indicated his unease with using TIF funds for public infrastructure.
In the last session, a Republican lawmaker proposed a bill that would have overhauled TIF legislation, saying the funds weren’t meant for private developers.
That legislation was tabled with several lawmakers telling reporters that it was too focused on issues in Missoula rather than the overall TIF framework.
Over the years, several efforts were discussed to curtail the use of TIF for private development rather than public infrastructure.
The Legislature’s Revenue Interim Committee is currently reviewing Montana tax structure and is looking at TIF, specifically in terms of defining blight, where the increment funds go when a district expires, requiring public hearings before certain TIF bonding and creating advisory committees for districts that use TIF.
Commissioner Susan Wolff moved to approve the use of TIF funds for the Mansfield and Civic Center, seconded by Commissioner Rick Tryon.
“I’m really excited about this project,” Tryon said of the theater projects that were a priority when he was on the Mansfield advisory board more than a decade ago. “This will be a really great improvement.”
In response to McKenney’s comments about using TIF for public facilities, Tryon said he’d also heard objections of using those funds for public projects, “but we used it quite well and appropriately for the facade.”
He said the law currently states that TIF can be used for public facilities and that lawmakers can argue about it in the next session and change the law if they so choose.
“This is a public building. This is a key part of city infrastructure in my opinion,” he said. “To me, this is a really important and appropriate and good use of TIF funds.”
Commissioner Shannon Wilson said she was lukewarm about the theater seats and ceiling, but saw the necessity of upgrading the elevator.
She said she felt better about the project with the state funding, but said she sees bigger TIF needs for downtown.
Wilson has said in recent meetings that she wants the city to consider installing public restrooms downtown, such as the Portland Loo that was installed in Billings last year.
Mayor Cory Reeves did not comment during the discussion, but voted to approve the TIF request.
A 1918 design included a proposed civic center between 1st Avenue North and 1st Avenue South from 11th Street to 13th Street with streets radiating out from the building.
That plan was never implemented, according to city staff, but “clearly reflects the early desire to place the Civic Center at the heart of Great Falls activity.”
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The existing Civic Center was completed in 1940 on city parkland through bond sales and the federal Works Progress Administration, which was created by Franklin Delano Roosevelt’s presidential order and funded by Congress with passage of the Emergency Relief Appropriation Act on April 8, 1935, according to the city’s history of the building.
The Civic Center houses much of the city government to include the city manager, human resources, legal, finance, planning, events and Municipal Court. City Commission, planning board and other advisory boards meet in the building.
When the building was dedicated in 1940, the program detailed that the Mansfield Theater was a “1,780-seat venue that was designed to ‘furnish an outlet for recreational enjoyments and meet a long felt need for a large gathering place when events of unusual interest come to Montana,’” according to the city.
The theater hosts the Great Falls Symphony, traveling Broadway musicals, weddings, local productions and other shows.
Most of the current elevator system in the building was installed in 1983 to allow access to the upper and lower floor of the building for those with mobility access to ensure they can attend commission meetings, get to court or sit in the Mansfield balcony, according to city staff.
The seating was installed in 1939, and is likely original, as staff said the theater was completed that year.
The seats were last restored in 1996, according to city documents. A 2013 proposal to commissioners to replace the seats had an estimated $800,000 price tag.
In 2020, a city staffer asked to include the theater improvements in the Civic Center facade project that was completed earlier this year, but that didn’t go through.
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The seats have degraded over the years, are narrow and uncomfortable to som and are breaking with increasing frequency as parts are more difficult to find.
Replacement parts for the seats are no longer in production, making the scarce and increasingly expensive, according to the city.
The seat replacement project will reduce the total number of seats in the theater, but staff said it would have a marginal impact to known theater operations.
Hillary Shepherd, executive director of the Great Falls Symphony, sent a letter of support for the project to City Commissioners in late July.
“Patron satisfaction with the Mansfield Theater’s seats has consistently been the lowest-scoring survey metric from our concertgoers for the past decade. Most frequently, people take issue with the small width of the seats, uncomfortable seat cushions, and accessibility. These issues have, unfortunately, resulted in some individuals no longer being able to attend our performances, which is a significant loss for both them and our organization. Seat replacement will resolve these issues while making the theater more inclusive and comfortable for everyone,” Shepherd wrote.
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She wrote that the symphony also provides a boost to the local economy.
A recent study by Americans for the Arts, estimated that every symphony ticket sold generates an additional $31.47 for the local economy, meaning the Great Falls Symphony helped generate about $400,000 in additional revenue for downtown Great Falls businesses last year alone, Shepherd wrote.
In October 2023, commissioners approved changes to their rental agreement with the symphony, which staff said is the theater’s largest customer with 12 shows annually.
The Great Falls Symphony was founded in 1959 and has played in the Mansfield Theater at the Civic Center since at least 1986, according to city records.
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“The presence of a cultural institution like the Great Falls Symphony enhances the attractiveness of our city as a place to live, work, and visit. It helps to attract tourists, new residents, and businesses, thereby contributing to the overall quality of life in Great Falls,” Shepherd wrote to commissioners.
Multiple roof leaks over the years have damaged the theater’s ceiling and the city requested an estimate from a specialist in historic ceiling repairs.
The elevator has also been prone to breakdowns and been shut down multiple times over the last year.
Staff said as the only elevator in the building and ADA access to the basement and second level, the elevator needs to be brought up to code.
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The projects are eligible for TIF funding under state law and the Civic Center is included in the downtown master plan to “actively pursue the preservation and rehabilitation” of the facility.
During the July 24 Downtown Development Partnership meeting, Lonnie Hill, deputy city planning director, said that the downtown TIF fund has adequate funding to support the request.
Tom Hazen, the city’s grants manager, said that the plan is to complete the project in about 90 days next summer during a lull in theater usage.
Brett Doney of the Great Falls Development Alliance said that it’s a “worthwhile use of TIF funds,” but wanted more information from staff on the city’s TIF requests going forward.
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Gary Hackett, a downtown business owner and member of the DDP, said that he wanted the city to plan better for maintenance and capital needs so facilities like the Mansfield didn’t fall into disrepair.
The city has been discussion replacing the seats since at least 2013 and a number of fundraising efforts have been started over the years.
Commissioners voted unanimously in 2022 to submit the grant application to the state for the theater seats and ceiling repairs.
At the time, Commissioner Rick Tryon said, “we really, really need to do this.”
During the Aug. 6 meeting, Raymond Porter, a symphony board member said the new seats will be a “great thing to have” and that the symphony will continue to work to fill those seats and be a strong part of the community.
Eric Bartz, the symphony’s patron services coordinator, said that over his years of selling tickets, he hears constant complaints about the seats and asked commissioners to approve the request.