Missoula approves sale of Riverfront Triangle Fox site to Averill Hospitality; agreements fund plaza, trails and housing trust

Missoula City Council voted unanimously on July 21 to approve three agreements selling the Riverfront Triangle "Fox" parcel to Averill Hospitality LLC and to set terms for development, land use and public benefits.

The package — a purchase-and-sale agreement, a development agreement with the Missoula Redevelopment Agency (MRA), and a land-use and development requirements agreement — frames construction of a hotel, public plaza and trails, a riverfront connection and payments to the city’s Affordable Housing Trust Fund. The council carried each motion by roll-call vote; all three measures passed 11–0.

The agreements matter because they move a parcel that has sat vacant for decades into private development while preserving and funding public amenities and housing programs. The developer will build public infrastructure tied to the project, the MRA and city will receive an initial purchase payment and a deferred second payment before construction begins, and a portion of future revenue will be directed to local housing programs.

Ellen Buchanan, executive director of the Missoula Redevelopment Agency, described the project as phased: an initial payment at closing and a deferred payment when construction reaches permitting. "At closing . . . that initial $1,700,000 payment to the city," Buchanan said. "Prior to actual construction starting . . . they make that final $2,300,000 payment to the city." (Staff and developers placed those figures on the record during committee and council discussion.) The purchase structure allows the developer to secure site control and proceed with design; the deferred payment supports cash flow through detailed design and permitting.

The development agreement requires the hotel developer to construct public-facing elements including a riverfront trail connection and a public plaza through the former Owen Street right-of-way; those elements will be returnable to the city as permanent public access. Buchanan and city staff said the plaza and trails are intended to be part of a broader network that would connect the Riverfront Triangle to other riverfront parcels and improve access to parkland and stadium parking on the river’s south side.

The deal also includes a developer commitment to direct a share of hotel-related revenue to the Affordable Housing Trust Fund. Councilor Jesse Jones described the contribution as a major long-term source for housing funds: "$7,000,000 into our Affordable Housing Trust Fund over the next 10 years is a game changer," he said during debate, attributing that projection to the revenue model discussed in the MRA memo and developer materials on the record.

City officials and the developer also documented contractual protections related to two frequently raised risks: contaminated soils on the site and interest-rate exposure if the developer finances public infrastructure. City Attorney Ryan Sudbury said the agreements include an "off‑ramp" for the…