Article Summary –
The Scott Street-Ravara housing development, built on a former contaminated lumber mill site in Missoula, is under construction and includes 89 homes and 200+ apartments. The project involves 46 income-qualified and 43 market-rate condos and townhouses, along with 220-225 apartments and 35,000 sq ft of commercial space on a nine-acre plot. The project will not raise taxes for Missoulians, with the tax revenue from the new homes and site development used to pay back the bonds.
Missoula Lumber Mill Transforms into Housing Development
An abandoned lumber mill in Northside Missoula, which officials once believed couldn’t be rehabilitated for housing, will soon become home to 89 properties and over 200 apartments in the Scott Street-Ravara housing development. The project will also include 35,000 square feet of commercial real estate.
Mayor Andrea Davis highlighted the importance of this investment at the groundbreaking ceremony, promising a burgeoning community post-construction. The development will also host a community land trust (CLT) on three acres, featuring both income-qualified and market-rate condos and townhomes.
Income-qualified homes will target buyers earning less than 120% of the median area income, equating to $83,040 for a two-person household. The CLT system also ensures that homes maintain affordability, by requiring homeowners to resell at a restricted price.
The site’s history traces back to its listing as a state Superfund site 30 years ago, following contamination from lumber processing at the White Pine and Sash mill.
Efforts to clean the site for residential standards were eventually successful, leading to the DEQ ordering a residential-level cleanup of half the available acres in 2016.
Following the creation of an urban renewal district in 2015, the city used $6.6 million in tax increment financing to purchase the 19-acre vacant site which was then offered for developer proposals. Ravara Development, a subsidiary of Goodworks Ventures, teamed up with the city in early 2021.
Despite initial challenges of planning and escalating construction costs, the project gained momentum with the introduction of the Montana Housing Infrastructure Revolving Bond Program, providing a low-interest loan for infrastructure development.
While the Scott Street-Ravara project will require a $9.8 million bond from the city, it will not lead to raised taxes for Missoulians. Instead, the repayment will come from the new tax revenue generated by the development and growth within the urban renewal district.
“In order to work towards the city’s goals around affordability, we need to participate in projects like this so middle-income Missoulians can afford homeownership and build equity,” said Annie Gorski, deputy director of the Missoula Redevelopment Agency.
The North Missoula Community Development Corporation has been involved in planning the site’s future for years. Infrastructure construction began recently and work on the buildings should start in early summer, with the first homes ideally for sale in May 2025.
The commercial space, to include a daycare and potentially a neighborhood grocery store, may break ground next spring. With the city planning numerous transportation projects on the Northside, the Scott Street-Ravara project marks a significant milestone in the area’s development.
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