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City Council upholds decision to deny development permit at Fort Missoula

Possible development at Fort Missoula will continue to be delayed after a City Council decision
Old Post Hospital Fort Missoula Aerial
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MISSOULA — Possible development at Fort Missoula will continue to be delayed after a City Council decision.

The intention of the special meeting of the City Council on Thursday was to vote on an appeal of a 2023 Historic Preservation Commission decision regarding the Old Post Hospital development. The council voted against the developers, preventing the proposed development from moving forward.

The Missoula Historic Preservation Commission (HPC) voted in May of 2023 to deny two permits requested by developer FEA Missoula Hospital LLC.

The first permit asked for permission to demolish an old garage on the hospital grounds. Since the garage is a part of the Historical Fort Missoula, the developer needed a Historic Preservation Permit (HPP) to take it down.

HPC denied the demolition permit under violation of municipal code 20.85.085 which outlines criteria for obtaining an HPP and making changes to historical grounds or buildings.

The HPC decided the developers did not make enough of an effort to sell or donate the historic garage.

FEA Missoula Hospital, led by Max Wolf and architect David Gray, reportedly posted the garage on three different real estate sites with a $40,000 asking price.

HPC voted the efforts unsatisfactory because the price was too high and FEA Missoula Hospital did not personally reach out to non-profits or preservation organizations who may have taken the structure.

At 2:40 p.m., almost six hours into the discussion, council member Kristen Jordan brought forward a motion to overturn the HPC decision and grant the developer the necessary permit to demolish the garage.

Missoula City Council voted 10 to 1 in favor of Jordan’s motion. Daniel Carlino of Ward 3 was the only council member to vote against the appeal.

The majority of the Missoula City Council found the developer's effort to sell the garage sufficient.

The second HPC decision appealed by Wolf, Gray and their attorney, Mark Stermitz, was the denial of a development and restoration permit. The permit would have granted the developer permission to add renovations to the Old Post Hospital, including fixing water damage, replacing the roof and adding an elevator.

The permit also asked permission to build 16 residential townhomes and two commercial buildings on the West side of the hospital grounds along Lt. Moss Road.

Wolf purchased the hospital in 2019 with the intention of completing an $8.5 million restoration to the hospital as soon as possible. As the project has been held up by Missoula zoning rules and permit requirements, the hospital’s condition has deteriorated, according to Gray.

There have been multiple reports of vandalism and unauthorized residents breaking through windows and doors at the hospital. Currently, a fence surrounds the building in order to prevent further human-caused damage.

FEA Missoula Hospital presented the design plan for their residential home development to HPC, which was found to be in violation of the municipal code. HPC determined the construction would negatively affect the Old Post Hospital grounds and take away from the historic environment at Fort Missoula.

HPC asked the developer to reapply after presenting a construction and renovation design that would better match the aesthetic of the other Fort Missoula buildings.

Stermitz says the HPC decision was unfair, stating in his 20-page pre-hearing written appeal, “The regulatory criteria are encumbered with a hidden agenda and a system that is incapable of unbiased review.”

The developer also said some of the conditions for development presented by HPC were not economically feasible and therefore unfair to request.

During the council meeting on Wednesday, Wolf, Gray and Stermitz all spoke to the Missoula City Council on behalf of their case. They claimed their development would both secure the protection of the Old Post Hospital and create new housing for the City of Missoula.

Members of Save the Old Post Hospital also spoke during public comment, asking the council to uphold the HPC decision. They said that the Missoula City Council was over-appeasing the developer and opening the door for future contractors to take advantage of empty historic ground in Missoula.

Council member Mike Nugent brought forward the motion to affirm the original HPC decision to deny the construction and renovation permit at 3:05 p.m. The motion passed with a 7 to 4 vote.

Council members Daniel Carlino, Sierra Farmer, Mike Nugent, Eric Melson, Jennifer Savage, Stacie Anderson and Mirtha Becerra voted yes, while council members Bob Campbell, Kristen Jordan, Amber Sherrill and Sandra Vasecka voted no.

Council members were not allowed to speak on this issue prior to the special meeting but deliberated for seven hours on Wednesday.

Among the most vocal council members during the meeting were Nugent, Jordan and Campbell.

Nugent believed the applicant — Wolf and his associates — had not proven enough error in the HPC decision, while Jordan saw the HPC decision as too subjective, and was eager to approve further housing for the city.

The decision before the Missoula City Council was not to vote on the development itself, but rather whether HPC had made sufficient errors in its decision.

Historic Preservation Officer, Elizabeth Johnson and Interim City Attorney Ryan Sudbury were present at the meeting, but no HPC committee chairs attended.

The developer is allowed to reapply for a building permit. If the permit is eventually granted, it would be the first step in a long process to breaking ground.