City to manage Riverfront Triangle as parking until hotel construction
Martin Kidston
(Missoula Current) The Missoula Parking Commission will continue to manage and maintain a downtown parking lot until the property's new owner is ready to begin building its hotel and conference center on the site.
The city, which has owned the 2-acre lot for decades, closed on the property's $4 million sale to Averill Hospitality in June. The company is planning a 180-room hotel and around 15,000 square feet of conference space but hasn't given a firm timeline for when construction will begin.
Until it does, Averill has asked the Missoula Parking Commission to continue managing the site as a parking lot.
“It will basically result in no changes to our operations,” said Jody Pilgrim, director of the parking commission. “But there is a slight change in the management of the surrounding areas for that lot.”
Under the agreement, Pilgrim said the city will be responsible for snow removal, striping, enforcement and general maintenance. She said the commission will keep the revenue that's generated from the lot's parking leases.
“When we first started talking about this with Averill, we let them know the expense to administer and enforce the lot and to maintain the lot is equal to what we get in revenue,” said Pilgrim. “Since we don't generate additional revenues on that lot above the expense to care for it, we wouldn't have any money to pay them.”
Last June, Averill announced its plans for the site and estimated the value of its project at more than $100 million. At the time, Averill said it would complete plans for the site in 2026 and begin construction in 2027.
In its agreement with the city, Averill will add a 1% assessment on rooms, food and beverages, and pay the collected sum into the Affordable Housing Trust Fund. It's expected to generate around $300,000 a year over 10 years, or $3 million in total.
The city's $4 million property sale will also go to the trust fund, bringing the project's total contribution to around $7 million – the largest in the fund's history.
Pilgrim said the parking commission will provide a 30-day notice to leasers when it's time to vacate the property.