Billings Sues Architects Over $1.772M City Hall Delay

The city alleges an architectural firm's late tax credit application forced months of stalled work and redone remodeling.

Updated on Nov. 6, 2026 in Home Renovation

Isometric editorial illustration of a partially stripped mid-century civic building with a stalled scaffold tower, evoking a halted public renovation. — The city of Billings is suing Johnson Laffen Galloway Architects for $1.772 million after a late tax-credit application stalled City Hall remodel work for months. AI Illustration. Upload story photo >

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The city of Billings has filed a lawsuit against Johnson Laffen Galloway Architects seeking $1.772 million in additional City Hall rehabilitation costs. The suit alleges the firm was seven months late submitting a historic preservation tax credit application to state and federal agencies.

Why it matters

The city halted work from April 2024 to June 2024 and chose to change completed remodel work rather than forgo millions in tax credits. The dispute shows how missed preservation requirements can add significant expense to public building projects.

The lawsuit seeks $1.772 million tied to the delay and redone work, within a $46 million total renovation cost. The city could apply for nearly $6 million in tax credits, and the case's outcome on those credits remains unresolved.

The players

Johnson Laffen Galloway Architects

The Billings architectural firm that prepared the City Hall rehabilitation work and submitted the tax credit application at the center of the lawsuit.

City of Billings

The Montana city that filed the lawsuit after work was halted and completed remodeling had to be redone to satisfy tax credit requirements.

The details

The 1964 City Hall building was eligible for historic preservation tax credits if specific requirements were met, but the city and architects did not know those requirements while remodeling progressed for several months. A firm representative told councilors on May 22, 2023, that the application was under state preliminary review, and once submitted, officials set conditions on the proposed work before credits could be received.

May 22, 2023: Architects told council the tax credit application was under state preliminary review.
April 2024 to June 2024: The city stopped work to address tax credit requirements.
October 29, 2026: The city filed its lawsuit against the architectural firm.

Real-World Impact

Homeowners and public bodies planning renovations of older buildings may need to confirm historic tax credit eligibility before construction begins. Missing those requirements can mean redoing finished work to preserve credits.

Residents of Billings may see the outcome of the lawsuit affect how public renovation funds are spent. Property owners restoring historic structures should verify preservation tax credit requirements early to avoid costly reversals.

The takeaway

Confirming historic tax credit requirements before starting a renovation can prevent expensive rework later. Early verification protects both budgets and project timelines.