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Missoula County approves development agreement enabling up to $7.9 million in TIF reimbursements for Creek Crossing Missoula
Summary
The board approved a seven-year development agreement allowing Creek Crossing Missoula LLC up to $7.9 million in tax-increment reimbursement for infrastructure—water, sewer, utilities, road, sidewalks and intersection improvements—with developers given four years to complete improvements and the county reserving bond issuance (minimum $2 million) as a reimbursement mechanism.
County staff outlined terms and the board approved the development agreement by voice vote.
Staff described a development agreement with Creek Crossing Missoula LLC that would implement terms for reimbursing up to $7,900,000 in infrastructure improvements using tax-increment financing (TIF) after the county’s February approval to use TIF for the project. The reimbursable improvements include a water-main extension, sewer extension, dry utilities (gas and electric), construction of an access road within the parcel, sidewalks, lighting, curb and gutter, and upgrades at the Reserve Street intersection that could include a traffic signal.
Under the agreement, the county would hold a seven-year term and developers would have four years to complete the improvements. Staff said reimbursements would come from available tax increment after administrative and operational expenses, with a $10,000 minimum claim threshold. If sufficient increment accumulates, the county could issue bonds to reimburse developers; staff described a possible minimum bond size of $2,000,000.
Staff ran a preliminary debt-service estimate for a $2,000,000, 20-year bond at roughly 6.5 percent, which would produce about $180,000 in annual debt service; staff also used an administrative estimate of about $100,000, leading to a rough benchmark of roughly $280,000–$300,000 in annual increment before the county would contemplate bonding. Staff noted the district produced about $56,000 in increment last year and is likely to need additional development (beyond a single 200-unit multifamily building the developer proposes) to generate the increment required for full reimbursement.
Andrew Hegemeier, Community Economic Development Director, clarified that while contract terms could be renegotiated, the $7,900,000 reimbursement ceiling stems from the earlier public process and could only be changed by returning to a new or amended public request. A commissioner moved to approve the development agreement; the Chair seconded and the motion passed by voice vote.
