Missoula County buys Wye water system to support growth
Martin Kidston
(Missoula Current) Citing a lack of infrastructure needed to guide development at the Wye, Missoula County this week approved the purchase of a newly constructed water system and will fund the acquisition using tax increment from a local economic district.
Last February, the county entered into an agreement where Grass Valley Industrial would construct the system and the county would buy it back for roughly $5.3 million once completed.
On Thursday, the county approved a $5.7 million bond to cover the cost of the purchase.
“We went to a private-sector business and said we'd purchase the water system if they built it,” said Andrew Hagemeier, director of economic development at the county. “It's done, and now we're working on the actual mechanisms to finalize that sale.”
For more than a decade, the county has been setting the stage for the Wye's eventual transition to an urban center complete with housing, retail, industrial use and job growth. The area is developing quickly, but it can't meet its full development potential due to its lack of public water and fire suppression, among other infrastructure needs.
To address those needs, the county established two Targeted Economic Development Districts (TEDD) at the Wye in 2020 to capture the tax increment needed to fund the infrastructure. The water system marks a step in that direction, the county said.
A TEDD works similar to an urban renewal district in the city.
“The mission behind a TEDD is to catalyze development. These areas are infrastructure deficient,” said Commissioner Josh Slotnick. “We established a public-private partnership to build the water system and we're buying it back. It's a really solid start. Once we have water, sewer and roads, we will see development in this area, which is our ultimate goal.”
Seeing an opportunity, the private sector approached the county last year and proposed ways to establish the water system. One of those partners included Grass Valley Industrial, which has plans to develop its own property at the Wye but faced challenges due to the lack of adequate water.
Under subdivision regulations, water for both domestic use and fire suppression are required. Rather than building a site-specific system for one parcel of property, Grass Valley and other partners developed a water system large enough to serve 20 users across 70 acres.
It was also designed to expand to other properties as development moves in, or connect to city water once it's available.
“We're at the starting point of this water system. We want a water system that encompasses all the TEDD," said Hagemeier. "This starts us off in a little spot. We've got to grow this system over time. The cash will be used to help fund that in the future."
Users of the water system will also fund its maintenance.
Planning for growth
The Missoula Valley doesn't have many locations suited for manufacturing and industrial growth, officials have said. But the Wye has been identified in county plans for its urban potential.
Already, several planned neighborhoods at the Wye span 1,300 acres of undeveloped land. Even at eight units per acre, county officials have said that future development could accommodate up to 15,000 homes.
The Wye also includes 540 acres of undeveloped industrial land and 250 acres the county considers underdeveloped. If the area can meet its full development potential, it could take pressure off the valley's agricultural land, wildlife habitat and other issues that come with unplanned urban sprawl.
Hagemeier and the county's bond council said the $5.7 million bond took the concerns of several Wye-area taxing jurisdictions into account, including Desmet School, the Frenchtown School District and the Frenchtown Rural Fire District.
“We've designed it to not include those permissive levies that Desmet asked to be excluded from, and to not include the permissive levies of the Frenchtown fire and school district. They're not locked up in this bond,” Hagemeier said.