City Council to vote on land sale for $100M housing project
May 15, 2026
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05/15/2026
“Missoula This Week” is reported and written By Katie Fairbanks. Send your Missoula news and tips to [email protected].
Midtown Commons project would include 225-250 housing units
The Missoula City Council next week is set to approve the sale of its property near the Southgate Mall for a $100 million housing development.
The council Monday will vote on the purchase and sale agreements and a development agreement with Miramonte Companies for the Midtown Commons project, which includes 225 to 250 housing units and a new public park.
The council’s discussion and preliminary vote Wednesday follows the Missoula Redevelopment Agency board’s May 8 approval of $10.9 million of tax increment financing to help pay for the project’s infrastructure and the park. Under the agreement, the developer would pay back $5 million as residences are sold, meaning the city would ultimately spend about $5.9 million in TIF on the project.
Credit: Courtesy of GHF Architects
Mayor Andrea Davis said Wednesday the project is one piece of the city’s approach to addressing its housing shortage and will provide missing-middle housing — apartments, condominiums, townhomes and small single-family homes — affordable to Missoula’s workforce, families and seniors wanting to downsize.
“It is a project that we believe strikes the right balance, one that is compatible with the neighborhood,” the mayor said. “It achieves what is achievable in today’s market, and it is capable of delivering meaningful public benefit.”
In late 2024, the city used $5.9 million in tax increment financing to purchase the 13.5-acre property from two landowners. Last summer, the city selected Miramonte Companies to develop the site. Under the proposed agreement, it will sell the land to Miramonte for the same purchase price.
Last year, the city was approached by the owner of an adjacent 2.3-acre property, who offered to sell it to the city for $1.3 million. As part of the agreements considered Wednesday, the city would simultaneously purchase the property using TIF funds and sell it to Miramonte. The money from the sales, paid out over time, would go to the city’s affordable housing trust fund unless the council decides otherwise, said Annette Marchesseault, a senior redevelopment project manager with the Missoula Redevelopment Agency. The development agreement requires repayment in five years.
The first phase of development includes the townhomes and extension of Schilling Street and Harve Avenue. The extension of Johnson Street south through the property, the new park and trail connections will be part of the second phase. The developer must pay off 50% of the land purchase before moving to phase three, Marchesseault said.
The development is set to include about 20 townhomes, 150 condominiums, 56 apartments and six single-family homes, according to the site plan. Those exact numbers could change as designs are finalized, said Chris Kemmerly, Miramonte’s CEO, during Wednesday’s meeting.
Kemmerly said his goal is for the condos to be priced around $300,000 to $350,000, about $200,000 below Missoula’s current median home price. Depending on the interest rate and mortgage, that could be affordable to a buyer making $56,000 to $61,000 annually, he said. The townhomes will be priced in the upper $400,000s to lower $500,000s, and the single-family homes will cost a little more than that, Kemmerly said.
Council Member Kristen Jordan asked if Miramonte would agree to set the price of a certain number of units at or below $300,000.
Kemmerly said he is hesitant to guarantee a price point without knowing the exact number of units in the development and because of the company’s requirement to pay back its loans.
“The lower the price, the faster we sell, the better it is for us,” he said. “Everybody thinks this is price-oriented. Timing is almost more important in development than what the price is. If we can sell these units, build these buildings quickly, our profits can make up for a lower price.”
Council Member Mike Nugent said he is hesitant to support the project if the homes would be scooped up by investors as rental properties.
Kemmerly said the properties’ deed restrictions will prohibit vacation rentals. While Kemmerly said he hasn’t previously had a problem with investors buying housing units in his developments, the state law may not allow limitations on those sales.
Several area residents during the meeting, and throughout the past year, voiced concerns about the park size and the development removing the existing natural area around the irrigation ditch.
The Missoula Parks and Recreation Board Tuesday approved the plan for the 1.6-acre park on the site. While increased from the initial 1.3 acres, the park is smaller than the 2 to 5 acres recommended by the city’s parks plan but makes up for that by providing a “complete park experience,” said Marina Yoshioka, the city’s parks and recreation director. The park design includes a playground, shade shelter, community lawn, sports court, pollinator habitat and other amenities. The city is working with the ditch company on an agreement to reroute the existing irrigation ditch to go through the new park, said Ryan Sudbury, the city attorney.
Yoshioka said the size and location of the park within the development is the developer’s decision. Kemmerly added that placing a park in the middle of the development is best practice.
The council will continue its discussion and likely vote on the sale and development agreements during its meeting at 6 p.m. Monday, May 18, in City Council Chambers. The link to join the meeting online will be posted to the city website Friday.
Following Up
The Missoula County Planning and Zoning Commission Tuesday heard another round of comments from supporters and opponents of citizen-proposed zoning in Frenchtown.
Keeping Frenchtown, a community nonprofit, proposed the zoning for about 400 acres north of Interstate 90 near the interchange where Town Pump plans to build a travel plaza. The project would not be allowed under the proposed zoning; however, it could proceed regardless because Town Pump has submitted a permit application and requested that the county determine it has a vested right to continue.
The zoning commission — which includes the county commissioners, the public works director, the county clerk/recorder and a citizen member — held public hearings April 30 and May 12 on the proposal. The hearing will continue Thursday, May 28.
During the meeting Tuesday, Dan Sampson, Town Pump’s construction and development manager, provided more details about the project and addressed some concerns brought up in the previous meeting. Sampson said the company is working with engineering teams and the Montana Department of Transportation to mitigate impacts from additional traffic to the truck stop, which will improve traffic flow in the area.
The company has also tested water availability and found “negligible” effects on neighboring wells, Sampson said. The planned wastewater treatment system will require regular sampling and groundwater monitoring, he said. The water, wastewater and underground fuel storage systems are all regulated by the state and require permits and monitoring, Sampson said.
Supporters of the zoning proposal raised similar concerns as earlier this month, including health and safety risks posed by a truck stop to teenagers and to the area’s water supply.
Graham Coppes, an attorney representing Keeping Frenchtown, said no process will achieve 100% consensus.
“We don’t want perfection to be the enemy of good, and what you have here in front of you is a good proposal,” Coppes said.
The hearing will continue during the commissioner’s meeting at 2 p.m. Thursday, May 28, in the Sophie Moiese Room of the Missoula County Courthouse. The public can also join the meeting online.
5 Things to Know in Missoula
The Missoula City Council Wednesday accepted a $900,000 Land and Water Conservation Fund grant to help pay for a new park on the Northside. The city will pay for the rest of the $2.7 million construction cost through a bond, said Lucy Rummler, a parks and recreation project manager. A private donation will cover the $262,000 design costs, she said. The 5.4-acre park on Scott and Rogers streets will replace White Pine Park and better serve the growing neighborhood, according to the city. The park will include a playground, field, sports court, shade pavilion, dog park, walking trails and nature areas. The park plan also calls for a water feature, which may or may not be included in the initial construction, depending on the cost, Rummler said.
The Missoula City Council Monday approved an option to allow developers to pay the city to plant street trees instead of doing the work themselves. Under the option, outlined in the city’s new unified development code, a developer would pay the city’s urban forestry department $1,025 per tree, which would cover the cost of purchase, storage, installation, watering for two years and pruning, said Morgan Valliant, the city’s associate director of ecosystem services. The option allows city staff to plant the trees during the ideal time of year and provide watering that will help ensure their survival, he said.
The city of Missoula recently received a $100,000 grant from the Montana Department of Natural Resources and Conservation to help property owners connect to the municipal sewer system. Through the Missoula Sewer Connections Program, property owners can receive up to $5,000 to connect their septic systems to the city’s sewer system. Those connections help reduce pollution from aging or failing septic systems, according to a city press release.
The Montana Environmental Information Center is holding a panel discussion Tuesday about the data centers proposed in the state, including one in Bonner. The panel includes Anne Hedges, MEIC executive director; Barbara Chilcott, an attorney with Western Environmental Law Center; and Amy Cilimburg, executive director of Climate Smart Missoula, and will be moderated by Eva Rocke, director of the University of Montana Office of Sustainability. The event takes place at 5:30 p.m. at the University Center Theater. Activities for kids will be set up in the lobby during the event.
The city of Missoula’s public works department will close one block of Spruce Street downtown Thursday for milling and paving work. The road between Orange Street and Owen Street will be closed from 5 a.m. to noon. Drivers are encouraged to use alternate routes during construction. Crews will remove the top layer of worn asphalt and apply a new layer of pavement.
Snapshot
Credit: Katie Fairbanks/MTFP
Destination Missoula and the Missoula Tourism Business Improvement District unveiled a new visitor information wall at the Missoula Montana Airport Friday, May 8.
“When we set out to create this Destination Missoula Welcome Wall, we wanted it to immediately connect visitors to our community by reflecting the two pillars that set Missoula apart as a destination,” said Barbara Neilan, executive director of Destination Missoula and the district, during the ribbon-cutting. “The immediacy and accessibility of our extraordinary natural resources, of course, and the depth of our arts, culture, entertainment and heritage.”
Destination Missoula budgeted about $35,000 for the project, Neilan told MTFP in an email. The wall features two interactive iPad displays, a video screen and a visitor planning phone line that connects to Destination Missoula’s call center for advice from local residents. It also displays art by Courtney Blazon, Paul Marmore, Monica Gilles-BringsYellow and volunteers with the Missoula Pony Keepers that represent unique aspects of Missoula, Neilan said.
Credit: Katie Fairbanks/MTFP
Destination Missoula is holding a contest to name the carousel horse included on the visitor wall. Those interested can vote through suggestion boxes at the airport, at the carousel in Caras Park or online. The winning name will be announced on June 3.
“This has been a long time coming, and I think it will make a big impact on welcoming residents and visitors to our airport and to the community,” said Brian Ellestad, the airport’s director.
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