County agreement to fund infrastructure at Grant Creek Crossing
Martin Kidston
(Missoula Current) Missoula County on Tuesday approved a development agreement with a local builder to fund the infrastructure needed to serve a 200-unit residential housing project near North Reserve Street.
While Grant Creek Crossing Missoula LLC plans to lay the infrastructure, the county will reimburse the cost using up to $7.9 million in tax increment from the recently created Targeted Economic Development District (TEDD).
The property spans 84 acres that formerly served as a gravel pit. The first phase of development, which includes the housing project, covers 39 acres.
“The developer is going to build a 200-unit multi-family housing unit, which does meet our definition of workforce housing,” said Flanna McLarty, the county's land and economic development specialist. “Within that southern portion of the property, there's potential to develop three or four other developments. They just haven't settled on what that's going to look like yet.”
Tuesday's agreement also addresses the improvements planned before development begins. That includes intersection improvements at Reserve and Schramm streets, an internal access road with sidewalks, lighting, and sewer and water.
Once the work is complete, the developer can submit invoices to the county for reimbursement. That reimbursement would be paid with tax increment from the 84-acre district, so long as the district has the increment to cover the costs.
The county may issue one or more tax increment revenue bonds until the full $7.9 million is reached, McLarty said. The developer has four years to complete the work, according to the agreement.
“Without these improvements, they're not going to be able to build the apartment complex. They need water. They need sewer. They need a road,” said McLarty. “They need all of this to build anything, and they also need to build the things to generate the tax increment. The county is in a good position. The developer is assuming the risk here. Once they complete their requirements, we'd theoretically have enough tax increment to reimburse for that.”
A portion of the property went on the market in 2024 and was listed as a build-to-suit joint venture, in which the development team was seeking potential partners. At the time, a conceptual site plan suggested a number of commercial or retail pads, along with multi-story housing.
As the projects are developed, the tax increment they'll generate will go to reimburse the cost of the public infrastructure.
“It's likely they'll have to do more than just the 200-unit residential building to generate enough increment to cover the reimbursement,” McLarty said. “The risk is on them. If they don't build, we don't have the excess tax increment to pay for anything.”
The county in the past few years has created several TEDDs in other areas, including the Wye. The districts are similar to an urban renewal district in the city and are used to capture tax increment to invest in public infrastructure.
The county has already declared Grant Creek Crossing as “infrastructure deficient,” saying it lacks transportation, water, wastewater, stormwater, broadband, workforce housing and utilities.
“This is a great project,” said Commissioner Juanita Vero. “The risk to the county is so limited.”