Missoula City Council Set to Vote on $100 Million Midtown Commons Housing Development
Why It Matters
Montana’s city of Missoula is moving to address a persistent housing shortage through a major mixed-use development near the Southgate Mall. The proposed Midtown Commons project would add hundreds of new housing units at price points significantly below the city’s current median home value, with the goal of expanding options for working families, seniors, and workforce residents.
What Happened
The Missoula City Council is scheduled to vote Monday, May 18, on purchase and sale agreements and a development agreement with Miramonte Companies for the Midtown Commons project. The development would be built on a 13.5-acre city-owned parcel and is valued at approximately $100 million.
The project calls for between 225 and 250 housing units, with the current site plan outlining roughly 20 townhomes, 150 condominiums, 56 apartments, and six single-family homes. A new public park and trail connections are also part of the proposal. The council held a preliminary discussion and preliminary vote Wednesday ahead of the final decision.
The Missoula Redevelopment Agency board approved $10.9 million in tax increment financing on May 8 to cover the project’s infrastructure costs and the new park. The developer, Miramonte, would repay $5 million of that amount as residential units are sold, leaving the city’s net TIF contribution at roughly $5.9 million.
Mayor Andrea Davis expressed support for the project, calling it compatible with the surrounding neighborhood and capable of delivering meaningful community benefit. The city originally acquired the property in late 2024 using $5.9 million in TIF funds. Under the proposed agreement, it would sell the land to Miramonte at the same price it paid. A separate adjacent 2.3-acre parcel, offered to the city for $1.3 million, would also be purchased and simultaneously transferred to Miramonte as part of the deal.
By the Numbers
- $100 million — Total estimated value of the Midtown Commons development
- 225–250 — Planned housing units across multiple types
- $10.9 million — Tax increment financing approved by the Missoula Redevelopment Agency
- $300,000–$350,000 — Target price range for condominiums, roughly $200,000 below Missoula’s current median home price
- 1.6 acres — Size of the planned public park, approved Tuesday by the Missoula Parks and Recreation Board
Key Questions from the Council
Council Member Kristen Jordan pressed Miramonte CEO Chris Kemmerly on whether the developer would commit to holding a portion of units at or below $300,000. Kemmerly said he was hesitant to lock in a price floor before final unit counts are determined and given the company’s loan repayment obligations, but noted that faster sales at lower prices can still be financially viable. “The lower the price, the faster we sell, the better it is for us,” he said.
Council Member Mike Nugent raised concerns about the possibility of investors purchasing units and converting them into rental properties. Kemmerly said deed restrictions would prohibit vacation rentals, though he acknowledged that state law may limit the city’s ability to restrict investor purchases more broadly.
Neighborhood residents have raised objections over the past year about the park’s size and the loss of a natural area along an existing irrigation ditch. The Parks and Recreation Board approved the 1.6-acre park design Tuesday — larger than an earlier 1.3-acre proposal but below the 2-to-5-acre range recommended by the city’s own parks plan. Parks Director Marina Yoshioka said the design provides a complete park experience despite its smaller footprint. The city is also negotiating with a ditch company to reroute an irrigation channel through the park.
Zoom Out
Missoula’s housing affordability challenge mirrors conditions across much of the Mountain West, where rapid population growth over the past decade has pushed median home prices well beyond the reach of middle-income earners. Cities in Montana, Idaho, and Colorado have increasingly turned to tax increment financing and public-private development partnerships as tools to stimulate workforce and missing-middle housing. Missoula’s approach — acquiring land with public funds and transferring it to a private developer at cost — reflects a model gaining traction in smaller cities with limited affordable housing stock.
The project is separate from Missoula’s broader housing initiatives but is viewed by city officials as one component of a multi-pronged strategy. For more on workforce and economic pressures affecting Montana communities, see our recent coverage of a Froid mechanic who spent more than 100 days in jail on immigration charges and the economic ripple effects felt in small Montana towns.
What’s Next
The City Council’s formal vote on the sale and development agreements is set for 6 p.m. Monday, May 18, in City Council Chambers. A link to attend the meeting online will be posted to the city’s website on Friday. If approved, the first phase of construction would begin with townhomes and street extensions, followed by additional phases that include the park, trail connections, and the bulk of the condominium units. The developer must repay 50 percent of the land purchase price before proceeding to phase three.