Council finds that HPC erred in denying Old Post Hospital permit

Martin Kidston

(Missoula Current) After hearing several hours of testimony, the Missoula City Council on Wednesday determined that the Historic Preservation Commission erred in at least one finding when it denied the owner of a Fort Missoula property a demolition permit last year.

The case, related to FAE Missoula Old Post Hospital at Fort Missoula, has been simmering for years. The Historic Preservation Commission initially denied FAE a permit in 2023 to redevelop the property with housing, which would have provided revenue toward the hospital's costly restoration.

With no funding for restoration, FAE then sought a demolition permit earlier this year, but HPC denied that as well and did so on a number of fronts. Among them, it suggested that FAE had failed to seek “reasonable alternatives” that would result in preservation, renovation or adaptive reuse of the building.

The commission also refused FAE's argument that failing to secure the demolition permit would result in unreasonable economic hardship for the property's viability. The commission accused the owner of not maintaining the property in the first place, and for exacerbating the property's decline and economic prospects through neglect.

The latter raised questions among council members on Wednesday given the building's 124-year lifespan, the toll vandalism has taken over the years, and the persistent neglect of prior owners over decades.

“I don't feel that burden was made to show there was direct neglect by (FAE) here, given the extreme age of the building,” said council member Bob Campbell. “If (HPC) is laying the case of their argument on vandalism, or the fact that so much degradation has occurred in a tiny time of the lifetime of the building, it's an error. Nowhere is it stated that the commission even bothered to do a site visit, which I find particularly troubling.”

The city's Historic Preservation Officer also submitted a summary that disagreed with HPC's findings. Among them, Elizabeth Johnson said the hospital's economic viability was actually “severely impacted” by the estimated $10 million costs of rehabilitation and its current state of disrepair. Johnson also found that FAE had in fact “made a bona fide effort to find a reasonable alternative” for restoration of the property.

Finding that the HPC erred in its decision now sends FAE's application to the historic preservation officer. Johnson has 30 days to sit down with FAE and identify the requirements for a redevelopment plan.

Once a redevelopment plan is approved, FAE could seek a demolition permit.

“That's the process, waiting for them to submit basically a historic preservation application for redevelopment,” said Johnson. “They'll have to provide the same information and demonstrate that the proposed redevelopment was in compliance with all the same standards their first project was held to.”

Kenneth Wolf, a principal with FAE Missoula Hospital, said that even though they were appealing the HPC's permit denial, they were still open to redeveloping a portion of the property and directing revenue into the hospital's renovations rather than demolition.

Wolf hinted at such an outcome on Wednesday.

“If you reverse and we go back for a redevelopment plan, that plan could include the hospital,” he said. “If part of the plan was keeping the plan in some form, we could do that. In that process, we could come up with a different option (over demolition).”

Council members were nearly unanimous in their finding that the HPC erred, and most agreed that they didn't like the process.

“I think it's unfortunate there wasn't some reconsideration or tweaks to the application before we got to this point,” said council member Mike Nugent. “But I'm equally frustrated, as it's easy for me to understand why the state Legislature has taken the responsibly away from committees such as this for decisions like this. It's ripe for inconsistencies. I do worry about that. I think our process has some real flaws, and I don't blame people for being frustrated with it.”

Despite the council's ruling that the HPC denied the application in error, most expressed hope that something will surface to ultimately save the hospital from demolition.

“Perhaps there's options that haven't yet been explored,” said council member Kristen Jordan. “I don't want to see the post hospital demolished, but I'd also like see these folks be able to use their land based on how it's zoned. If they present a case for a rezone, I'd like to hear that as well. I feel like both sides could have collaborated and cooperated and made some concessions.”

The permit isn't likely to come back to City Council, baring a request by FAE to rezone the property for a wider range of uses - uses that could rekindle hope for the Old Post's restoration.

“We want to have our cake and eat it too. Let's not forget this is a private piece of property but it does have public benefit,” said council member Mirtha Becerra. “I think the most unbiased recommendation based on fact, based on statute and all the regulations that we have in place, came from the historic preservation officer. I wish HPC would have followed those recommendations.”