MISSOULA — With millions of dollars in private investment slated for downtown Missoula, new year-round air service to Chicago and a successful marathon weekend in the books, the local economy may be waking from its post-pandemic doldrums.
Barb Neilan, executive director of Destination Missoula and the Tourism Business Improvement District, said two recent successes — the announcement of a $100 million development on the Riverfront Triangle and air service to Chicago — are strong signs of economic growth.
“There are so many wonderful projects happening and they're all happening synergistically. It's kind of like they were all meant to happen at the same time,” Neilan said. “You're seeing companies like the Averill's that are willing to make those larger investments. And the airport – that's been a partnership that wouldn't have happened if not for all the people involved.”
Last week, Averill Hospitality announced plans to redevelop the Riverfront Triangle into a 180-bed hotel with a 15,000 square-foot conference space. The project, estimated at $100 million, also includes parking and a public plaza connected to the river.
Less than an hour later, Missoula airport announced daily, year-round service to Chicago on American Airlines. The announcement comes less than two months after the airport completed and opened the second phase of its roughly $110 million terminal project.
“We've known for a long time that the business community has been requesting more flights,” said Missoula Mayor Andrea Davis. “Missoula is a place people want to be, both residents and visitors alike. We've been really intentional about creating places. Place making really is a thing that's not only good for the community, but good for business.”
Earlier this year, Story House also announced plans to open a 47-acre film and television campus on the former Roseburg property. The site's reawakening helped ease Roseburg's decision last year to shutter its particleboard plant.
Missoula's unemployment rate stands at 2.5%, slightly under the statewide unemployment rate of 2.8%.
“You're seeing our community starting to come together behind these projects,” Neilan said. “No one organization can make these happen on its own. The right people are in the right positions to start catalyzing the community and moving things forward.”
Brian Averill, head of Averill Hospitality, said Missoula remains a good place to invest. His company also owns and is remodeling its Double Tree Inn property on Madison Street.
Despite some economic headwinds, such as higher interest rates and construction costs, he described his projects as solid.
“The tourism industry has been pretty solid in Montana,” Averill said. “If you have a great location, a great product and you combine all that with the care of our guests, our staff and the community we live in, it shows and it ultimately provides a greater experience.”
As for the higher costs, he said, “We're familiar and navigating that right now. We're very familiar with it. It (Riverfront project) will float very well.”
Despite the promising signs of economic movement, Davis said the city will continue to address other stubborn parts of the economy, primarily the high cost of housing and issues around affordability. But that has also seen some progress in recent months.
Among them, the city has partnered with Ravara and the North Community Development Corp. to construct the state's largest community land trust, which will deliver 45 attainable condos, each income restricted in perpetuity.
Also, Averill Hospitality will provide $3 million to the city's Affordable Housing Trust Fund. The $4 million sale of the Riverfront Triangle will also go to the fund, making the $7 million total investment the largest contribution to the fund to date.
The city's new Land Use Plan and code reform — which is set to begin this year — are expected to help move the dial on affordability by streamlining development and removing red tape. In the end, that could help address issues around affordability, city officials have said.
“We'll constantly be monitoring and massaging the other elements of our community that's impacted by growth, and largely that being affordability,” Davis said. “We're keenly focused on that.”
