MISSOULA — One of the largest development projects to partner with the City of Missoula is rising from the grounds of a former Superfund site and will soon provide a blend of market-rate and income-restricted housing.
The project, headed by Ravara LLC in partnership with the city and other entities, including the Missoula Redevelopment Agency, could see the first units go on the market later this year.
“Everything that's under construction right now is all for home ownership, it's all for sale,” said Kiah Hochstetler, a member of the development team. “It's part of the strategic structure we've created with the City of Missoula to bring this project together.”
The project has been years in the making and dates back to 2020 when the City Council agreed to purchase 19 acres off Scott Street for roughly $6.6 million.
The property was little more than a vacant Superfund site at the time, though a neighborhood push eventually convinced the Environmental Protection Agency to ensure roughly 9 acres were cleaned to residential standards.
Of that, three acres were placed into a community land trust to help ensure half of the 89 condominiums and townhouses planned in the first two phases include deed-restricted housing. The land trust, held by the North Missoula Community Development Corp., ensures those 45 units remain affordable in perpetuity.
Missoula Mayor Andrea Davis said the project serves as an example of what's possible under the city's land-banking strategy.
“We're utilizing land purchases like this to turn them into community amenities like this mixed-use project,” said Davis. “This was an EPA Superfund site. At one time it wasn't suitable for residential use. But because of the work this neighborhood did and because of the partnership, we've been able to turn this space into what's going to be a thriving part of the city.”
Construction
Despite the mud and looming snow squalls, construction on the site moved at a brisk pace on Wednesday. The first row of nine condos have already been dried in while a second bank of condos is now framed.
The condos completed in Phase 1 will include three- and four-bedroom units. That initial construction will sell for market rate and help subsidize Phase 2, which includes the deed-restricted homes.
“In order to construct Phase 2, we have to sell through on these units first,” said Hochstetler. “We have to prove the market and prove that it's there and we have to get through the product. When we get through that process, we'll break ground on Phase 2.”
Along with the city's land-banking strategy and support from the Missoula Redevelopment Agency, the project received a boost in 2023 when the Legislature added workforce housing to the definition of infrastructure.
The change enabled MRA to invest in housing alongside standard public infrastructure like roads and water mains. It will now serve as a model for future projects as the city explores way to address the housing crisis.
“When we purchased this land, we were only able to use (tax increment financing) for horizontal infrastructure,” said Davis. “But the 2023 Legislature enabled agencies like MRA to take that money and put it toward vertical construction. This is the first project we've done at the city utilizing that financing tool. We're learning a lot of lessons from this and how we can use these resources at our other city-owned parcels.”
Future plans
The Scott Street development will focus on the first two phases until complete. But the master plan for the remaining six acres includes other elements.
Hochstetler said the development team is currently working with a local grocery operator to provide a neighborhood grocery store within the project. They're also working with potential commercial tenants and are openly looking for interested businesses.
A future phase will also provide an additional 225 housing units. That portion of the project remains in flux.
“We're evaluating if it makes more sense to bring those in as condos with home ownership, or if it makes more sense to bring them on as apartments,” Hochstetler said. “That decision hasn't been made yet. But we think the value of home ownership is substantial here in Missoula. So while those would be market rate, we have an inclination that's probably the route we'll go with this project.”
