City seeks partnership in Forest Service plan to sell Missoula Midtown parcel

City officials are asking the U.S. Forest Service to reconsider how it plans to sell a 14-acre property within the Missoula Midtown neighborhood, contending that a partnership with the city would lead to more effective redevelopment of the land.

Members of the Missoula Economic Partnership and the City of Missoula recently met with Forest Service officials about the property this spring, according to MEP CEO Grant Kier.

The talks centered on the agency's plan to sell the property using a competitive bidding system, which was first reported by the Missoulian in early April.

The property has long been eyed for disposal by the Forest Service, who announced a sale could close by 2028. The state Department of Revenue estimates the property is worth $5 million.

Kier, whose organization is contracted by the city to collaborate with developers on projects, told the Missoulian that the Forest Service's plans would delay housing construction.

"The plan creates a significant hardship for Missoula, and not much financial upside for the Forest Service," Kier said in a Monday phone call.

Kier said the city is in need of land capable of building new housing units, as the city has lagged behind in home production for several years, which has increased housing costs.

Instead of selling the land to the highest bidder, Kier proposed a deal where the Forest Service works with the city to create a predictable public-private partnership that could begin planning the area's redevelopment.

"Time costs money in development and the years lost will result in higher costs for future homebuyers," Kier wrote in a recent letter to the Forest Service. "With our proposed approach, the city and private partners could be ready to break ground on a full redevelopment plan the day after closing."

He also contends the competitive bidding process would not generate much more additional money for the Forest Service, as there are many risks that come with buying the property.

The land sits within a developed street grid, but lacks developed roads and utilities, requiring significant investment in public infrastructure before homes or businesses can be built.

"These combined risks will likely reduce the bidding appetite of a particular buyer and reduce the buyer pool overall," Kier wrote in the letter. "We therefore believe that it’s reasonable to assume that a bidding process will likely cluster close to an independent appraised value."

Kier noted that the property sale is not related to the larger reorganization of the Forest Service by the Trump administration, but has been eyed by the federal government for the last two decades.

Existing wildland firefighting operations at the property will be relocated to other properties in Missoula, like a new building under construction in Fort Missoula, the Missoulian previously reported.

Missoula City Council President Mike Nugent told the Missoulian on Monday night whoever purchases the property must secure a rezone of the land before any new construction can take place.

He said since the land has been publicly owned for more than 80 years, it makes sense for the Forest Service to include the city in the process, who could achieve community goals like adding green space.

"Part of that parcel makes perfect sense to have a park in a neighborhood that does not have that many parks," Nugent said. "I know for years the city has hoped to be part of that process."

He said while the city could use Tax Increment Financing for some of the public infrastructure, a private developer would have to pay for some of those upfront costs for roads and utilities.

The Forest Service did not respond to a request for comment from the Missoulian on Tuesday.

The 14 acres if one of several properties near the former Bitterroot Spur rail line that have been eyed for redevelopment, like Midtown Commons, Rail Link Park and the recently announced Franklin Crossing.