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 city if previously unknown contamination is discovered that makes remediation economically infeasible: the city could unwind the agreement, reimburse certain developer costs and remove the city from disproportionate remediation liability. Sudbury told council the teams had negotiated provisions to limit the city’s open‑ended exposure but that, should remediation costs be extreme, the city could choose not to fund open‑ended remediation.

Dale Bickel, the city’s chief administrative officer, described interest‑rate risk measures the city may use: "There are other financial instruments that we could consider . . . to mitigate our risk." He said city staff would evaluate mitigation tools as the developer finalizes construction financing.

Representatives of labor unions and building trades spoke at council and in committee, urging that construction and long‑term operations provide local hiring, living wages and opportunities for union contractors. Don Halvorsen, business manager for Plumbers and Pipefitters Local, told council, "All we're trying to do . . . is to give our contractors and give our members a chance." Developers and city staff said they had discussed workforce questions and that the development would be subject to state prevailing‑wage rules on public‑funded infrastructure. City staff also noted there is limited unionized general‑contractor capacity locally and that a strict requirement for union contractors could push work outside the region.

Supporters of the deal — including business and community leaders — said the project will activate an underused waterfront parcel, create downtown hotel capacity and generate tax increment for future public uses. Grant Keir, head of the Missoula Economic Partnership, urged council to preserve predictability in public‑private partnerships: "Developers . . . need confidence and predictability of the process going forward."

The agreements approved by council authorize the mayor to sign the purchase and sale, the development agreement and the land‑use requirements agreement. Council and staff said the next steps include final design; review and execution of an operating agreement for the public plaza and trail construction; and coordination with the Montana Department of Revenue and MRA on tax‑increment timing and bonding capacity.

Clarifying details recorded in council discussion included: the staged purchase payments (initial $1.7 million at closing, $2.3 million prior to construction), the developer’s offer of an ongoing 1% hotel revenue donation mechanism that the developer said is intended to support charitable causes including housing (the developer described the contribution as intended to continue but said parties would reassess in ten years), and MRA staff estimates of incremental bonding and tax revenue as the project is built. City staff said the MRA may allow developer financing of plaza and trail work (phase 3) and reimburse the developer on mutually agreed terms; those provisions will be evaluated as financing is arranged.

Councilors, developer representatives and community members said they expect a series of follow‑up items: final plaza and trail designs, a public operating agreement for the plaza, detailed financing instruments and construction schedules. City staff said construction will not begin until required permitting and financing steps are complete and that the council will see operating and management agreements for the plaza and related public spaces before construction is completed.

Speakers

- Ellen Buchanan — Executive Director, Missoula Redevelopment Agency (government). First referenced 04:31:11 (transcript block ~4311–4340). - Dale Bickel — Chief Administrative Officer, City of Missoula (government). First referenced 44:48:30 (transcript block ~4448–4494). - Ryan Sudbury — City Attorney, City Attorney's Office (government). First referenced 46:38:20 (transcript block ~4638–4662). - Sean Averill — Representative, Averill Hospitality LLC (business). First referenced 62:36:23 (transcript block ~6236–6240). - Derek Hitt — President, Missoula Central Labor Council; Business Rep, Teamsters Local 2 (labor). First referenced 84:82:30 (transcript block ~8482–8510). - Don Halvorsen — Business Manager, Plumbers & Pipefitters Local (labor). First referenced 88:00:30 (transcript block ~8800–8847). - Grant Keir — President & CEO, Missoula Economic Partnership (nonprofit/business). First referenced 75:42:30 (transcript block ~7624–7695).

Authorities

- {"type":"other","name":"Missoula Redevelopment Agency policies and TIF practice","referenced_by":["Ellen Buchanan","Council discussion"]} - {"type":"other","name":"State prevailing-wage rules (public-funded infrastructure)","referenced_by":["City staff discussion"]} - {"type":"other","name":"Montana Department of Revenue procedures for assessed values","referenced_by":["Ellen Buchanan","city staff"]}

Actions

- {"kind":"contract_award","identifiers":{},"motion":"Approve agreement for purchase and sale of real property between City of Missoula and Averill Hospitality LLC; authorize the mayor to sign","mover":"Councilor Jones","second":"Councilor Becerra","vote_record":[{"member":"Anderson","vote":"yes"},{"member":"Sara","vote":"yes"},{"member":"Campbell","vote":"yes"},{"member":"Jones","vote":"yes"},{"member":"Jordan","vote":"yes"},{"member":"Nelson","vote":"yes"},{"member":"Savage","vote":"yes"},{"member":"Cheryl","vote":"yes"},{"member":"Basica","vote":"yes"},{"member":"Farmer","vote":"yes"},{"member":"Carlino","vote":"abstain"}],"tally":{"yes":11,"no":0,"abstain":0},"legal_threshold":{"met":true},"outcome":"approved","notes":"Roll-call vote; developer to pay staged purchase payments at closing and prior to construction."}

- {"kind":"development","identifiers":{},"motion":"Approve development agreement between City of Missoula, MRA and Averill Hospitality LLC; authorize the mayor to sign","mover":"Councilor Jones","second":"Councilor Becerra","vote_record":[],"tally":{"yes":11,"no":0},"outcome":"approved","notes":"Agreement includes public plaza, trails, housing contributions and reimbursement mechanics; operating agreement to return to council."}

- {"kind":"land_use","identifiers":{},"motion":"Approve Fox Triangle Land Use and Development Requirements Agreement between the City of Missoula and Averill Hospitality LLC; authorize the mayor to sign","mover":"Councilor Jones","second":"Councilor Becerra","vote_record":[],"tally":{"yes":11,"no":0},"outcome":"approved","notes":"Sets land-use standards, public access easements and design review checkpoints."}

Discussion vs. Decision

- Discussion: Council debated environmental remediation risk, financing interest-rate exposure, and workforce/local hiring. Labor representatives urged local hiring and contractor access; developers and staff described state prevailing-wage requirements for public-funded work and limited local unionized general-contractors. - Direction/assignment: City staff and MRA to refine financing terms and draft a public plaza operating agreement to return to council; staff to coordinate with Montana Department of Revenue on assessed-value timing during construction. - Formal action: Council approved all three agreements (purchase, development agreement, land-use requirements) by roll-call votes.

Clarifying details

- {"category":"purchase_payments","detail":"Staged payments","value":"$1,700,000 initial at closing; $2,300,000 prior to construction","approximate":false,"source_speaker":"Ellen Buchanan"} - {"category":"housing_contribution","detail":"Developer committed mechanism to donate 1% of hotel revenue to charity or housing in perpetuity (subject to reassessment at 10 years)","source_speaker":"Sean Averill"} - {"category":"environmental_risk","detail":"City has an off-ramp if remediation costs are excessive; developer may be reimbursed for agreed costs; city would not assume indefinite remediation liability","source_speaker":"Ryan Sudbury"}

Proper_names

- {"name":"Riverfront Triangle","type":"location"}, {"name":"Averill Hospitality LLC","type":"business"}, {"name":"Missoula Redevelopment Agency","type":"agency"}, {"name":"Clark Fork River","type":"location"}, {"name":"Affordable Housing Trust Fund","type":"program"}

Provenance

- {"block_id":"b_4135","local_start":0,"local_end":400,"evidence_excerpt":"We have item 9.1 d b. This is the Riverfront Triangle box site sale and development. This item was reviewed in committee last week on the sixteenth. It had a majority vote for a due pass this evening, but it was not, unanimous.","reason_code":"topicintro"} - {"block_id":"b_12300","local_start":0,"local_end":420,"evidence_excerpt":"And that's 11 in favor, none opposed. That also passes unanimously.","reason_code":"topicfinish"}

searchable_tags:["riverfront","MRA","affordable_housing","hotel","public_plaza","tax_increment"]},