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County proposes moving DIRECTV lease funds into housing innovation fund and adding economic development FTE funded by TIF
Summary
County economic development staff proposed reallocating unrestricted proceeds from the DIRECTV lease into the housing innovation fund (including $40,000 toward county staff salary and $50,000 recurring to the fund) and requested a new community economic development FTE funded by tax increment financing.
Missoula County staff told commissioners they discovered unrestricted lease proceeds from the county‑owned facility commonly called the DIRECTV building and proposed reallocating those funds to support housing innovation and part of a county staff position. Staff also presented a separate request for an additional community economic development FTE funded through tax increment financing (TIF).
County staff said the DIRECTV lease generates roughly $750,000 in annual lease revenue, most of which goes to pay the original construction debt service on the facility. Staff reported about $90,000 of the annual lease receipts do not go to debt service and are technically unrestricted. County staff proposed removing those lease proceeds from the TIF account and placing them in a county account designated for housing programs: allocating $40,000 annually toward one quarter of the county economic development staff member’s salary (so that 25% of the position is not funded by TIF) and directing $50,000 annually into the housing innovation fund.
“We are mixing restricted funds, which are tax increment, with unrestricted funds,” a county economic development presenter said. Staff said the change is an accounting reallocation and recommended it because tax increment funds are statutorily restricted to TIF uses. Staff told commissioners that if the DIRECTV lessee exercises a purchase option or the lease is renegotiated, annual receipts could change; the lease is structured as a lease‑to‑own and the remaining lease payments are expected to pay off the facility around 2031.
Staff also reported a one‑time balance: while reviewing the TIF account history, staff identified about $350,000 in accumulated unrestricted funds attributable to the lease that have been commingled in the TIF account over time. Staff proposed using that one‑time amount to seed the housing innovation fund — staff estimated that, if approved, the housing innovation fund would grow to roughly $1 million with that addition and the recurring $50,000 commitment.
Separately, staff requested a new FTE in the community economic development department (described as an “lands and economic specialist” or similar economic development specialist). Staff said TIF program workloads have grown: the county has added tax increment districts and is managing multiple complex projects (for example, Grant Creek Crossing and the Wye water system). Staff said comparable programs typically have three to six FTEs and that the new position would be funded entirely through TIF revenue, not the county general fund.
Commissioners asked clarifying questions about the lease structure and contingencies if the lessee leaves; staff said the lease obligates the lessee to continue payments and that the lease arrangement was a negotiated lease‑to‑own to attract the tenant. No formal votes were recorded during the presentation; staff said the accounting change and FTE request will be considered in the FY26 budget process.
