Additional meeting scheduled Jan. 2; annual deadline looms in February
By Jack Reaney SENIOR EDITOR
The Big Sky Resort Area District board held a special meeting today, Thursday, Dec. 5, to hear a proposal for potential voter-approved debt that would fund infrastructure projects outlined in BSRAD’s capital improvement plan.
Daniel Bierschwale, BSRAD executive director, introduced the complicated topic in a presentation called “Bonding 101.”
“The most important point to note here for everyone in the Big Sky community is: what we’re discussing today does not have a direct impact on an increase in taxes,” Bierschwale said. “… Underline, bold, exclamation point—we are not discussing an increase in taxes.”
Big Sky’s resort tax will remain 4% on luxury goods and services, comprised of 3% resort tax and an additional 1% for infrastructure. But annual resort tax revenues aren’t sufficient to cover Big Sky’s pressing infrastructure needs in a timely manner, so BSRAD is exploring bonding to fund projects with upfront costs between $75 million and $125 million in total, Bierschwale said.
The board is on a tight schedule. They must decide by early January whether or not to bring a potential bond package to voters, who will ultimately decide whether Resort Tax takes on significant debt to fund infrastructure. For a bond package to appear on ballots in May of 2025, the board must have ballot language prepared and submitted by early February.
Board members expressed concern about making such an unprecedented and heavy decision in a 90-minute meeting Thursday, and eventually voted to convene for an additional working session. Thursday’s proposal was prepared by a subcommittee of only two board members, Kevin Germain and John Zirkle—their proposal showed a rough estimate of $100 million in potential debt—and an additional session would make space for careful questions from the rest of the board.
“This is 100 million dollars, and while I think you are both crazy smart and have put so much effort into this, I don’t know that I feel comfortable having the committee make the recommendations without maybe an application-style meeting,” said board member Sarah Blechta—she pointed out that every year, BSRAD pores over requests merely in the thousands. “We spent hours—like hours and hours and hours—on 10 million dollars for annual applications… I’m feeling anxious and nervous about 100 million dollars of debt that I don’t know enough about.”
Repeating a phrase he used in November, Germain called this process “uncharted waters” for Resort Tax and agreed with the concern voiced by Blechta, echoed by board member Michelle Kendziorski.
Zirkle told EBS that Thursday’s decision is a big step in the right direction, adding that a careful and engaging public meeting will lead to a better outcome for the community.
The working session will be held on Thursday, Jan. 2 at 9 a.m., likely at a larger venue to accommodate a sizable crowd, similar to BSRAD’s annual allocations meetings. They hope to see significant attendance from the public.
“Not only… is it very public, but we want a lot of people there,” Germain said.
Bierschwale cautioned that if the bond isn’t ready for ballots in February, they’ll need to wait an entire year for another chance to bring it to vote. “We are now beginning to push against a barrier of time,” he said.
Germain responded that it’s not worth rushing the board for a decision of this magnitude.
“I think we’ve got time… It’s very important,” Germain said. “I think that enough debate and dialogue goes into this, as I said, these are big, big, big decisions.”
After the public working session on Jan. 2, the board will hold its regular meeting on Thursday, Jan. 9.
The board also agreed to move its February meeting from Feb. 13 to Tuesday, Feb. 4.
Five big projects make the early cut
Eight near-term infrastructure projects were identified by the subcommittee, totaling up to $117.4 million in potential Resort Tax debt. Although specific numbers are a bridge to cross later, the board did vote on which should continue to be evaluated.
The costliest project is Cold Smoke, a large-scale workforce housing development projected to cost $220 million. However, the Big Sky Community Housing Trust only identified $60 million in capital needed from Resort Tax—$45 million to acquire land, and $15 million to build housing infrastructure.
The board voted unanimously to discuss Cold Smoke in greater detail on Jan. 2.
Second largest, water and sewer infrastructure is projected to cost $80 million and will require $35 million from BSRAD. The category includes the ongoing effort to construct central sewer in Gallatin Canyon, a costly affair with potential benefits to Gallatin River health and workforce housing.
The board voted unanimously to continue its discussion of water and sewer infrastructure.
As the Arts Council of Big Sky begins fundraising to renovate a new community arts center, the $12 million project will require only $2 million from BSRAD.
The board voted unanimously in support, and Zirkle praised the nonprofit for bringing a “historic match” through philanthropy to fund the project, and for taking advantage of an existing building.
Another capital project, BSCO plans to continue renovating Big Sky Community Park with the aim of improving Big Sky’s livability to help retain residents. The project would cost $8.7 million, requiring $7.4 million from BSRAD.
The board voted unanimously to continue discussion of the project.
A similar project from BSCO to construct a new community park would cost $5 million with BSRAD’s potential bond package funding the entire request.
The board voted 3-2 to continue discussion of the new park on Jan. 2.
Board cuts three projects from the slate
Funding for a wildlife crossing was removed due to timing concerns—$1.2 million in BSRAD funding would help fulfill a required non-federal match for an application to a competitive grant from the Federal Highway Administration, yet to be awarded.
“Cash might be the right move, but I’d like to spend more time talking about it as a group,” Blechta said, adding that the federal match seems “historic” with federal dollars poised to fund the vast majority of the project cost.
The board voted unanimously to exclude the wildlife crossing from the Jan. 2 meeting.
The Big Sky Transportation District plans to construct bus pull-outs and waiting areas, which would have cost $5.8 million. Facing a similar challenge as the wildlife crossing—BSRAD funding is needed to potentially obtain federal matching dollars—the board suggested bringing the project to BSRAD’s annual allocations.
“Don’t quit yet, come to us for the annual cycle, and I think that may be a really good, appropriate avenue versus the bonding,” Blechta said.
Finally, BSCO is planning a $1 million project to improve wilderness trails, trailheads and in-town paths. BSCO would need $900,000 from Resort Tax.
Blechta pointed out that tax dollars are available through the Big Sky Trails, Recreation and Parks District for work like this, and BSRAD would prefer to focus on BSCO’s larger-scale CIP projects.
The board voted unanimously to exclude both bus pull-outs and BSCO trails and paths from Jan. 2 discussions.
At the dawn of 2025, the community and BSRAD board will share an opportunity to learn more specifics and give feedback about the projects shaping Big Sky’s future.
