Missoula MRA approves TIF for Levasseur Street infrastructure, leaves open separate workforce-housing request

The Missoula Redevelopment Agency board on March 27, 2025 approved up to $605,040 in tax-increment financing (TIF) to pay for site preparation and public-right-of-way improvements for a proposed podium-style condominium project at 318 and 322 Levasseur Street, and affirmed that the developer may return with a separate TIF request seeking workforce-housing assistance for the same property.

The project as described to the board would include podium-style condominiums with unit sizes ranging roughly from 835 to 1,400 square feet and an average cost per unit the developer estimated at about $650,000. Staff said the bulk of the MRA request covers replacement of an existing water main with a new 8-inch line to serve the proposed development, nearby housing and to improve fire protection; other reimbursable items include alley and sidewalk work, electric main upgrades and downtown-design-compliant street lighting.

Why it matters: the water-main replacement and utilities work would serve multiple properties on the block, not just the development site, and staff estimated the TIF investment could be repaid in under seven years assuming roughly $90,000 in annual incremental tax revenue. Staff also said infrastructure construction could begin in April 2025, with project completion expected by December 2026.

Board discussion and deconstruction question: board members praised the parcel’s redevelopment potential but paused over whether deconstruction costs for both addresses were eligible. Staff told the board that an earlier 2022 “proceed without prejudice” action and the developer’s supporting letter focused on 322 Levasseur, while the current application included both 318 and 322. Developer representatives acknowledged the oversight and described the omission as “our mistake,” saying one building had been deconstructed after an occupant left and that prevailing wage had been paid for the work. Staff presented two cost scenarios: the recommended TIF cap excluding the disputed deconstruction item (up to $605,042 in staff materials) and a higher total ($657,677) if deconstruction were included.

Board action and conditions: the board approved the primary TIF request (motion recorded as up to $605,040) and also unanimously affirmed that Levasseur LLC may return with a separate workforce-housing TIF request for the same project location. Staff clarified that any future workforce-housing request would be considered only for items eligible under the MRA’s workforce-housing program guidelines and that any reimbursement would follow standard documentation requirements (proof of payment, certificate of occupancy and lien release/ordinance).

What the action does not do: the board did not retroactively confirm eligibility for deconstruction at both addresses. Board members said they wanted to remain consistent with prior practice and policy when it comes to eligibility, and one board member explicitly noted that staff’s hands were constrained by established practice.

Clarifying details and next steps: staff said construction of the public-right-of-way work was expected to begin in April 2025, with an estimated project completion in December 2026. The developers committed to either set aside 10% of units as workforce housing or donate an amount equal to 10% of the MRA investment to the city’s affordable housing trust fund; staff estimated the donation would equate to just over $60,000 under the current proposal. Reimbursement from the MRA will occur only after required documentation is provided to staff.

Votes at a glance: the motions to (1) approve TIF assistance for site prep and public-infrastructure improvements and (2) affirm that Levasseur LLC may return with a separate workforce-housing TIF request passed unanimously.

Ending: Developers and staff may return to the board with additional paperwork or a subsequent workforce-housing request; the deconstruction eligibility for the second address remains a staff/board implementation issue to be resolved through established policy and any future submittals.