An effort to acquire 13 acres in the Midtown district cleared its first hurdle Thursday when the Missoula Redevelopment Agency (MRA) Board of Commissioners agreed to purchase the property using available Urban Renewal District III funds.

The Missoula Economic Partnership has negotiated a below-market purchase price of $5.8 million for the property.

Along with approving the purchase, the board recommends that the City Council accept ownership of the property in November and allow the mayor to sign the closing documents in December.

“The property has been vacant for over 20 years,” said MRA member Annette Marchessault. “It’s a key property in Midtown.”

While the parcel has been vacant for decades, a study conducted by the Urban Land Institute (ULI) in 2003 recommended a number of potential plans. In 2015, Southgate Mall Associates (SMA) also considered developing a portion of the property.

But those redevelopment efforts never panned out, in part because of the property’s lack of infrastructure.

However, other projects aimed at transforming the area have moved forward, including the completion of Mary Avenue, which provided an east-west connection between Brooks and Reserve streets using an easement provided by SMA nearly a decade ago.

Once a connection is made, the city is also looking to complete a north-south connector between South Avenue and Brooks Street. The road would cross the 13-acre parcel and include an eventual grid pattern after the city takes possession and prepares the site for redevelopment.

“The city with MRA has been slowly trying to put together the pieces envisioned in the 2003 ULI study, which called for an east-west connection and also envisioned a north-south connection,” Marchesseault said. “That’s not in place, but with the construction of Mary Avenue and the roundabout, a lot of the pieces are already in place.”

With MRA agreeing to purchase the property, the City Council will be asked to officially accept the property and allow Mayor Andrea Davis to sign the closing documents.

The council will consider the measure in November and the city could take over responsibility in December.

That would launch an effort to begin master planning for the property and seek one or more development partners to carry out the plan. Davis said that with the help of the Missoula Economic Partnership, several potential partners have already expressed interest.

“There is a lot of key interest in this package. There are several private parties already interested in this location, and Providence St. Patrick Hospital has already located its facilities adjacent to it,” Davis said. “It is a huge investment by taxpayers and the city to make this purchase, but we will turn it into a catalytic opportunity.”

While Urban Renewal District III has the reserves to allow MRA to purchase the property with existing revenues, funding the necessary infrastructure will require additional funds.

Ellen Buchanan, MRA director, said that could take a variety of forms, from bonds to grants.

“This district has great bonding ability,” Buchanan said. “There are still steps to take. But there is great interest in this. It is a key location. The Midtown Master Plan strongly recognized this. “We are going to try to move forward as quickly as we can.”

Once the infrastructure is in place, the city would seek one or more private developers to carry out any plans that are formalized through a public process. But early proposals include a “single” mixed-use development with housing, retail, parks and plazas, and a possible transit station.

The latter would tie into plans to launch a bus rapid transit line on Brooks Street that would connect to downtown.

“When we look for an experienced development partner, we’re not necessarily looking for a project,” said city CAO Dale Bickell. “We are looking for a partner that is fully aligned with what we want to do. “We want someone who not only builds homes, but builds the type of homes we want.”

MRA board members said purchasing and redeveloping the property in partnership with the private sector will serve as an economic boon to Midtown and help realize parts of the Midtown Master Plan.

“When this happens, it will be a jolt to Midtown,” said board member Tasha Jones. “The debate over raising taxes is often ‘why,’ but the ‘why’ is so we have a seat at the table. “To say we want to see this area redeveloped in line with our goals and culture, needs and desires as a community, is a shining example of how important tax increases are to our community.”