Missoula County to sell share of downtown building to Partnership Health for $1.3M

A buy-sell agreement between Missoula County and Partnership Health Center for property in downtown Missoula is expected to close this spring, releasing the county from ownership in the building.

The deal will see Missoula County sell its interest in the property to PHC for $1.3 million. The building is located at 323 W. Alder St.

“This is a process that’s been ongoing for the last year,” said deputy county attorney Jason Marks. “PHC is using it and wants to continue using the entire building. The decision was made in May to sell our interest in the building to PHC and have it be their building.”

Marks said the property has been jointly owned by the county and PHC for several years. When the lease lapsed, however, it included a provision requiring the county to purchase the building in full.

Selling the property to PHC cleans up the lease and settles ownership, Marks said.

“PHC in the recent past put $500,000 in it, thinking they owned the building because everyone lost track of this lease along the way,” he said. “That triggered a provision in it that the county had to purchase it. This just cleans that all up.”

The county expects the deal to close in March, though other issues must first be resolved. The building was constructed beyond the property lines, for one, requiring the city to complete a boundary relocation.

Marks said the county will also lease 10 parking spaces to PHC on the adjacent county lot.

“It in no way constrains what the county does with that neighboring lot, other than we agreed to lease them those 10 parking spots,” Marks said.

Andrew Czorney, the county’s chief financial officer, said the county will likely use proceeds from the sale to close any budgetary gaps.

“We’ve got so many funding needs and very few dollars to go around. We’re going to have some holes to fill.”

PHC currently houses its administrative offices in the Alder Street property, though it plans to expand some services. County employees formerly located in the property are being relocated to the Radio Central Building on Main Street.