MISSOULA — After years of failed deals, the City of Missoula expects to close on a large parcel of property in the downtown district, taking a significant step toward the property's final redevelopment.
The Missoula Redevelopment Agency's board of commissioners on Thursday authorized up to $20,000 to aid in the transaction — a sum that includes closing costs, an environmental assessment and the necessary filing fees.
Once the property changes hands next month, the buyer — Averill Hospitality — will begin designing its hotel and conference center, along with the public infrastructure that will serve the site and the several lots that surround it.
“They are going to design and build the public infrastructure, so the city isn't holding the contract,” said MRA Director Ellen Buchanan. “That was an important piece of making this move forward. As we work through the details, we'll know more.”
MRA last summer endorsed the terms of the development agreement with Averill. The agreement was then approved by the City Council. The developer placed the value of its project at more than $100 million.
MRA said Averill will design and build the public infrastructure and the city will eventually reimburse the costs. The project and those to follow will stretch the downtown district across Orange Street and create a new hub of housing, lodging, office and retail.
“Most recent designs for infrastructure took place in 2017,” said MRA deputy director Annie Gorski. “We've been working with the Public Works Department to ensure the costs reflect inflation today. We won't know final numbers until that design occurs.”
The property traces its roots back to the 1890s, when it served as the city dump. The city was gifted the property in 1984 and it took down a number of old structures on the site, including a gas station and the former Fox Theater. It also remediated the site using EPA funding.
The first city-sponsored plan for the property's redevelopment emerged in 2003, but it wasn't until 2017 that City Council approved a master development agreement for the site. One project was set to break ground in 2020 when the pandemic hit, essentially killing the effort.
Now, Averill is confident that its project will move forward, with construction anticipated to begin next year. As planned, the project will include a new parking facility, 180 hotel rooms and roughly 15,000 square feet of conference space.
It may also include residential condominiums and a sweeping public plaza on the riverfront. The city plans to extend the Riverfront Trail to the site and has described its plans as an extension of Caras Park.
“I'm excited for the community to finally have something on this corner,” said MRA board member Tasha Jones.
A number of large parcels remain for sale surrounding the so-called Fox site. A master plan for the roughly seven acres calls for a blend of housing, retail and office space, along with other amenities. The properties are brokered by Sterling CRE.
