‘An economic multiplier:’ City approves $100M downtown investment

Martin Kidston

(Missoula Current) A vote to approve a $100 million private investment in downtown Missoula survived a number of proposed amendments on Monday night and ultimately won the unanimous approval of City Council.

After decades of trying, redevelopment of the vacant and blighted parcel at Orange and Main Streets has a green light.

The approved agreements left a majority of council members assured that contracts regarding Averill Hospitality's voluntary tax donation to the Affordable Housing Trust Fund would focus on local needs in the decades to come.

Also, the design of a riverfront plaza will be agreed upon with public input as the project advances.

“There are so many hurdles to getting a project out of the ground, even if it's small,” resident Ryan Brewer told members of the City Council. “Something of this size requiring the technical expertise of the general and all of the sub (contractors) involved is really hard. Introducing additional barriers or requirements to the development at this point hurts the process. It actually makes it more likely they'd be unsuccessful.”

Council during Monday's hearing also voted to override a push to require the project to negotiate and work with union labor. State law – not the city – dictates the parameters of project labor agreements with unions, officials said.

However, the city's economic leaders said labor agreements were worth exploring in future endeavors. But by Monday night, most agreed it was too late to place such requirements upon a single project.

“I don't think this is the place to start making policy,” said council member Mirtha Becerra. “It's been way too long. This could be a really great catalyst for investment in this area.”

The vote to sell the property required – and received – a super-majority of council members. It passed 11-0. The other two contracts, including the development and land-use agreement, also passed unanimously.

The agreement

Averill Hospitality plans to build a 180-room hotel on city-owned property in downtown Missoula and pay the city's $4 million asking price.

The development agreement also calls for a 15,000 square-foot events center, along with a voluntary 10-year contribution to the city's Affordable Housing Trust Fund – the first contribution of its size in the trust fund's history.

That $3 million investment won the support of housing advocates. When added to the sales price, the contribution to the trust fund rises to $7 million.

Kaia Peterson, executive director of NeighborWorks Montana, voiced support for the project and the developer's voluntary contribution.

“The funds going up front and over time to the Affordable Housing Trust Fund is a very creative and thoughtful solution to putting this land to use,” she said. “We know how difficult it's been to fund the Affordable Housing Trust Fund, and we also know how important that fund is to accomplish a number of goals in the community”

Public input surrounding the project has largely been favorable. Earlier opponents to the agreements also supported the project, regardless of Monday's failed amendments.

“We bring these forward not to cause problems, but because people have asked us to bring this forward,” said council member Kristen Jordan, who voted against the project a week before. “We did that because we care about Missoula. We want to bring things forward that represent the folks in our community.”

Supporters of the project said certain requests surrounding the development of city-owned property may merit discussion on wages and union contracts in the future.

Grant Kier, executive director of MEP, said it was a discussion worth having.

“As we move forward, what can we do with our processes of introducing developers to projects in the community, to also ensure they have opportunities for organized labor  groups to be at the table to talk about what it looks like to get in front of these developers and propose their work and skill sets, so that's part of the conversation that takes place in the vetting process, and doesn't feel like it's a requirement that comes in at the 11th hour.”