Stockman Bank plans to break ground on its second facility in Missoula next spring, a move that punctuates the company’s confidence in the region’s economy and its opportunities for growth.
On Thursday, the Missoula Redevelopment Agency’s Board of Directors approved a package of tax increment financing to help fund demolition and complete public improvements along the Brooks Street property where Stockman plans to construct a three-story building.
The package is based upon the Missoula City Council’s final approval of a conditional use permit in December.
“Stockman has purchased this entire parcel of property with the intention of locating a new bank on the property and selling off the parcel to the north on McDonald Avenue for other development,” said Annette Marchesseault, a redevelopment specialist with MRA.
The project is slated for the corner of Dore Lane and Brooks Street. The site formerly housed the old Aaron’s store and a shuttered movie theater. Stockman razed the theater last spring at the request of the Missoula Police Department, which feared it was being used as a drug den.
The new bank, which is valued at $15 million, continues the city’s efforts to revitalize the Midtown district. Plans for the area call for greater connectivity and building densities with a mix of housing, retail and office space.
Marchesseault said the project fits the city’s long-term plans for the corridor.
“The building is oriented to align with Brooks Street and anchor that corner,” said Marchesseault. “This fits really well within the vision the city has for Midtown, which is infill development and establishing a street edge and some density in the neighborhood.”
According to MRA, the property currently generates around $56,000 in property taxes, though that will increase to $227,000 once Stockman completes the project and the property goes on the tax rolls.
To get there, Stockman requested and MRA approved roughly $456,000 in tax increment financing from Urban Renewal District III. That funding includes $121,000 for demolition of the property’s remaining structure, along with funding for utility relocation and pedestrian improvements, such as sidewalks, lighting and landscaping.
“It improves and enhances the site,” said Bob Burns, the Missoula market president for Stockman Bank. “We’re excited to improve that site and think this will be a great addition to that corridor.”
Stockman, a family owned Montana business, plans to occupy its new six-story branch in downtown Missoula later this year. The new south-side building, set for construction this spring, will employ 50 people while the third floor will be leased as Class A office space, something the bank believes is lacking on the south side of Missoula.
“The bank will occupy the first and second floor, while the third floor will be leased,” Burns said. “We think for that part of town there could be a need for some Class A office space, so we’ll be looking for a tenant to occupy the third floor.”