With up to 250 housing units, Midtown Commons wins city support

Martin Kidston

(Missoula Current) A redevelopment project planned on city-owned land near Southgate Mall will deliver up to 250 housing units, along with commercial space and a well-appointed public park, with construction set to begin this year.

The Missoula Redevelopment Agency's board of commissioners on Friday approved two sales agreements related to the project, along with a development agreement. Midtown Commons carries an estimated cost of more than $100 million and will receive roughly $5.9 million in tax increment to fund the public infrastructure, park and other public amenities.

“This is an exciting opportunity,” said Mayor Andrea Davis. “This project has long been discussed as a real opportunity to catalyze redevelopment for Midtown. We feel the proposal addresses a wide set of community goals and needs.”

The city purchased the 13-acre property dubbed Midtown Commons for $5.9 million in late 2024. The Missoula Economic Partnership then set out to vet proposed developers and presented several qualified firms to the city.

Miramonte Companies LLC was selected in June 2025 to develop the site and meet a number of city goals in doing so, including a range of housing types, streets and delivery of a public park.

Chris Kemmerly, owner of Miramonte, said his firm has focused on infill development for the past 40 years. Midtown Commons reflects that mission, he said.

“This is the epitome of good infill development,” he said. “This has been a true collaboration.”

A range of housing types are planned across the 13-acre parcel including single family homes, condos and townhouses, duplexes and apartments. The company will also purchase an adjoining 2.5-acre city-owned parcel and deliver a range of commercial opportunities under the full 15-acre development. It will pay the city $7.2 million for the properties.

The project also includes a 1.6-acre park, a greenbelt connecting to the Bitterroot Trail, a riparian zone, and connectivity between area streets, which is currently lacking. The property has sat vacant since the 1970s.

“We'll add new park space to our community,” said Davis. “Importantly, we'll also add new housing and many different types of housing. It's important to note that this project adds housing choice to our market.”

Project Funding for Other Midtown Plans

The funding package for Midtown Commons includes an initial $10.9 million investment in tax increment to help place the infrastructure needed to develop the site. Broken down, the funding includes $1.9 million to build the park and roughly $8.9 million for the infrastructure.

Annette Marchesseault, a project manager with the Missoula Redevelopment Agency, said that as Miramonte sells the project's housing stock, it will pay $5 million back to the city, representing a nearly 50-50 split in infrastructure costs.

The sales and development agreements still need approval by the City Council.

“At the end of the day with tax increment, the city will be investing roughly $5.9 million to leverage a development that's estimated at over $100 million,” said Marchesseault. “We feel it's an incredible investment in the community.”

Another developer – United Housing Partners – had been interested in developing Midtown Commons, though the city ultimately selected Miramonte. However, United Housing Partners was selected to develop an affordable housing project on Johnson Street, located just blocks away.

“The amount of money that (United Housing Partners) was asking for was a lot. It felt cost prohibitive and not very efficient to do affordable housing on this (Midtown Commons) site,” said Grant Kier, CEO of the Missoula Economic Partnership. “It turns out that Franklin Crossing is a much better model and better funding, and it leverages the investment here (at Midtown Commons).”

The Midtown project is expected to bring new tax increment to Urban Renewal District III. That funding will help develop the $67 million Franklin Crossing project, which will include 192 apartments with more than half reserved for those earning between 30% and 70% of the area median income.

The city has already agreed to donate land to Franklin Crossing and provide $9.7 million in tax increment from District III to help bolster United Housing Partner's application for state tax credits.

Davis described the two projects as a win for Midtown and Missoula's need for housing and infill development.

“(Midtown Commons) will get this land back on the tax rolls and add to the increment in this district,” said Davis. “It will be able to support another project down the trail at Franklin Commons, which will include 140 deed restricted affordable apartments.”