Local entrepreneurs have expressed interest in either opening a new business or expanding into a potential new building at the site of the old Missoula Public Library building on Main Street in downtown, according to the Missoula Economic Partnership.
But according to the Partnership’s business development director, Christine Littig, the development team that has exclusive rights to negotiate an agreement to redevelop the entire block has faced challenges with interest rates and construction costs and has applied for a 30-day extension to present a development concept.
Littig gave an update on the site to the Missoula Redevelopment Agency's board on Thursday afternoon.
Last August, the city selected two companies, deChase Miksis of Boise and Oregon and Edlen and Co. of Oregon to to develop the site.
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The old library building is located at 301 E. Main Street and sits on a valuable entire block of city-owned property. Local businessman Terry Payne and his family donated the block to the city in 2019, and it is currently rented out by the city, but the building is long past its useful life.
Annie Gorski, the deputy director of the MRA, explained the timeline to the board.
The city selected the developers to come up with a plan that best suits the community’s needs, including for housing and commercial space. The developers were given an initial 180 days to come up with a development concept.
“And then at the end of that, if we have a development concept that staff recommends that aligns with the goals in the Downtown Master Plan and is financially feasible, then the agreement is they present that to the MRA board and ultimately to city council,” Gorski said. “If approved, then we start working on a development agreement. Their initial presentation to us in terms of financial underwriting was that there were still some challenges. You know, it’s a costly environment to build in and with interest rates high, they needed more time to go back and do some due diligence on that.”
Gorski said the developers will probably request the three more 30-day extensions that they are allowed. But, she said, the developers are still excited about Missoula.
Littig said that local entrepreneurs, including child care providers and restaurateurs, have expressed interest in the site.
The site sits within an Urban Renewal District and developers may be eligible to apply for Tax Increment Financing.