MISSOULA — A project intended to provide income-restricted housing for employees and other disabled residents with Opportunity Resources took a step forward last week under a funding agreement approved by the Missoula Redevelopment Agency.
MRA one year ago approved roughly $2.4 million in tax increment to help fund the project, planned at 901 S. Third Street.
The project's total budget stands at $11 million and will provide 24 income-restricted housing units and a commercial space for Opportunity Resources' “Artists of Opportunity” program.
The housing units will be restricted to 60% of the area median income, according to MRA.
“It's exciting to see this project moving forward,” said Annie Gorski, deputy director at MRA. “We know this is a challenging environment to build housing in right now, particularly income-qualified housing. They're about a month away from starting vertical construction.”
The funding provided by MRA includes $559,000 for demolition and site work, which has already been completed. It also includes $1.5 million to help cover the construction gap of building 24 units of income-qualified housing.
The project was one of the first in Missoula to receive tax increment under the state's new definition of infrastructure, which now includes workforce housing.
“Everything has been going along as planned,” said builder Mike Bouchee. “Building demolition and site clearing work has been completed.
NorthWestern Energy is just putting the finishing touches on the underground conversion of the transmission line.”
Given its approach to funding the project and its own fiscal calendar, Opportunity Resources was seeking reimbursement of Phase 1 funding of $559,000 before housing construction begins.
MRA approved the reimbursement in exchange for a lien on the green-space portion of the project to serve as a security in the event the project collapses.
“The deed of trust for the condo (green space) site would provide the city security in the event the project didn't move forward,” said Gorski. “This will ensure we get to closing, and that lien would stay on the green space condo throughout construction to ensure the substantial completion of the project.”
As planned, the project will unfold in three phases, starting with deconstruction of the site's existing warehouse and preparation work, which has been completed.
The construction phase will result in nine 1-bedroom units and 15 units with two bedrooms and two baths, along with the retail space. Construction is set to begin this summer.
“The condo documents have been drafted and shared with City Attorney's Office for review,” said Gorski.
