Martin Kidston

(Missoula Current) The Missoula City Council on Monday night voted to bring an area deemed an infrastructure desert into an Urban Renewal District by adjusting the district's boundaries, poising the property for future investment and redevelopment.

The property, once home to the Roseburg particleboard plant, covers roughly 235 acres along Interstate 90. Monday's action brings 93 acres into the North Reserve/Scott Street Urban Renewal District while the remainder may be annexed later this year following the outcome of a master plan.

“This parcel, as the traditional mill uses have ended – and even the space around it – is grossly underutilized given its location,” said council member Mike Nugent. “One of the big barriers to developing it will be infrastructure. We'll see where we go from here.”

Placing the parcel into the district makes it possible for the city to invest tax increment toward the infrastructure needed to further develop the property.

But even with tax increment, the infrastructure needs may be greater than what the Missoula Redevelopment Agency (MRA) can achieve alone. Project advocates believe that private investment will also be needed as opportunities arise.

“Ultimately, as properties comes into the city through the annexation process, the goal is to incorporate those properties into the (urban renewal) district to make tax increment available for the infrastructure that area needs,” said city planner Michael Hicks. “We'd anticipate the private sector coming forward with plans and projects. From there, there's going to be infrastructure needs MRA can support. But there will be needs beyond that as well.”

The city in 2016 adopted the original master plan for the North Reserve/Scott Street district. That initial plan divided the area into sectors with residential to the east and commercial to the west. At the time, the Roseburg property split the two sectors and created challenges to long-term planning.

But the plant closed in 2024 and Roseburg took the first step in seeking annexation. StoryHouse – a film and television production company – also purchased 47 acres, which are included in the 93 acres annexed on Monday.

The plant's closure and Roseburg's partnership now create new opportunities to reinvent the entire district. The new master plan is anticipated for completion by fall.

“It's an important chunk of land in the city with a ton of potential to contribute meaningfully to our community and economy,” said Jeff Smith with WGM Group. “Tax increment is probably the most effective tool we have to help Sheppard that potential.”