MISSOULA – With no guarantee from the City Council, the Missoula Redevelopment Agency (MRA) submitted a decision this week to fund a costly ventilation project in a city store with toxic air, without knowing if elected officials will approve plans for the higher revenue guarantee needed. to fund vital infrastructure works in the Scott Street precinct.
The ventilation project, part of a larger energy deal the city signed last year to become carbon neutral, would fund the construction of a state-of-the-art air exchange unit at City Shops, off Scott Street.
But the project’s $1.3 million cost would pull more than $750,000 from the Scott Street Urban Renewal District, leaving the MRA with little room to fund other needs in the area.
“I’m personally opposed to it right now,” said MRA board member Tasha Jones. “There are too many variables and I don’t like taking our contingency fund to this level because there is so much uncertainty around what we can count on when we decide on a bond measure to meet the great needs of this area.”
If the MRA funded the city’s air exchange, it would reduce the emergency expense fund for the Scott Street Urban Renewal District to about $300,000. There is also a need for infrastructure in the area as development accelerates and other projects may arise, but the MRA would not have the capacity to handle them.
As a result, MRA Director Ellen Buchanan said the agency plans to parlay the cost of the air change into a $4 million bond it plans to issue to pay for infrastructure work. MRA could also add its $1.3 million contribution to Vallagio, another affordable housing project on Scott Street, to the bond.
This would free up revenue for the MRA to meet other needs in the area.
However, there is no guarantee that the City Council will approve MRA’s request for a bond issue. According to Buchanan, the City Council has already approved an infrastructure reimbursement agreement, although the amount was not determined during the discussions.
“That put them on notice that we’re coming to them and asking for bonds to build that infrastructure and other relevant costs in that (Scott Street) neighborhood,” Buchanan said. “But we haven’t used that ($4 million) number with them. We don’t have firm numbers yet for infrastructure deployment.
Scott Street Infrastructure Needs
The city purchased 19 acres on Scott Street several years ago and partnered with Ravara LLC to develop nine acres for housing. About three of those nine acres include 70 units of housing-restricted housing, while six acres include 224 market-rate units.
The entire project has been years in the making and follows a publicly prepared master plan for the area. The development will also include a small neighborhood grocery store, three different food vendors, a tap house and potentially a gym and co-working space, the developers said.
But before the project can break ground, the city must provide the necessary infrastructure to support the new neighborhood, including roads, utilities, sidewalks, lighting and other necessities. Although firm numbers are expected by the end of the month, the estimated cost of the MRA is around $4 million.
However, Buchanan said the MRA only has $1 million in volunteer funding available in the district. This makes air exchange financing a risky endeavor unless the cost can be added to a larger infrastructure bond.
“It doesn’t make sense to me to take $760,000 of that (volunteer funding) and use it as cash to pay for (the air exchange) as opportunities come up,” he said. “We need to use this revenue to stimulate private investment.”
Board members said they were in a difficult position. While city staff need to improve the air quality of the Scott Street shops, there’s no guarantee the City Council will approve a larger bond for air exchange and infrastructure work and other needs in the area.
Without that guarantee, the board voted to table the resolution, saying the district had too many needs and didn’t want to jeopardize them with the purchase of air exchange and the city’s uncertain position on the matter.
“Right now, if we’re going to vote on it, I’m going to vote no,” said MRA board member Melanie Brock. “We would like more confirmation that there is a plan in place that will not further impact assets in this urban renewal area.”
City Shops air exchange
Eager to make progress toward carbon neutrality, the Missoula City Council met in December approved the energy contract start implementing several projects to reduce energy use and improve efficiency.
The city contracted with McKinstry Essention LLC to begin the work, most of which has guaranteed savings that will recoup initial costs over time. But for now, it’s asking the MRA to fund some of the work.
Air exchange improves the efficiency of the Scott Street shops due to its modern design. But it also improves air quality for city workers who face the threat of high levels of carbon monoxide and other airborne toxins.
MRA noted in its memo that “the exhaust and air handling system of the City Shops building is deficient and may pose a risk to employees working in the building.”
MRA board members indicated a desire to complete the project, citing concerns about worker health, but some said it was outside the agency’s traditional role and questioned why the city gave them the task.
The agency plans to approach the city in the coming weeks to seek authorization to issue a larger bond to fund both the air exchange and infrastructure work. One city official said any delay, however, could leave city workers working under poor conditions for another year.
The city hasn’t said why it hasn’t already addressed the air change, given its alleged health risks to workers.
“McKinstry is attempting to ink work orders and individual contract orders with departments that have projects over the next month,” said City Manager Eric Hallstrom. “It’s hard to predict the availability and timing of contractors, but every month that goes by makes it a little less likely to make it into the year.”