Grant Creek Crossing Targeted Economic Development District

The Missoula County Board of Commissioners approved an ordinance to establish the Grant Creek Crossing Targeted Economic Development District (TEDD) at their public meeting on Nov. 14. This designation allows the County to address infrastructure gaps that have hindered economic development in the area. Through the TEDD, Missoula County aims to enhance infrastructure like transportation, water, wastewater, and broadband to attract and support value-adding economic development, such as manufacturing, tech research and tourism, which will contribute to local economic growth.

The TEDD development process included a review of infrastructure needs and adoption of a Comprehensive Development Plan (CDP) with strategies for tax increment financing to fund essential improvements. Following input from community members and local taxing jurisdictions during public hearings, the commissioners made adjustments based on public comments and have moved forward with establishing the TEDD, aligned with the County's broader economic vision in the Missoula County Growth Policy.

You can watch the full Public Meeting here.

During the second reading of an ordinance to create the Grant Creek Crossing TEDD on Nov. 7, the Missoula County commissioners heard comments from the public and affected taxing jurisdictions, including the Missoula Rural Fire District and Hellgate Elementary School District. Both taxing jurisdictions requested mill levies be excluded from the TIF calculation for the proposed Grant Creek Crossing TEDD. The commissioners did not make a decision at the Nov. 7 hearing and asked that the hearing be continued on Nov. 14 for staff and the taxing jurisdictions to have time to determine the effect of excluding mill levies.

The continuation is scheduled for Thursday, Nov. 14 at 2 p.m. at the Sophie Moiese Room in the Missoula County Courthouse.

During the first reading of an ordinance to create the Grant Creek Crossing TEDD on Oct. 10, the Missoula County commissioners heard comments from the public and affected taxing jurisdictions, including the Missoula Rural Fire District. The fire district asked the commissioners for additional discussions around funding solutions and for assessments of the effects of TEDDs on fire districts. They also requested that an agreement be in place before adoption of the proposed Grant Creek Crossing TEDD.

The next public hearing and second reading of an ordinance to create the TEDD is scheduled for Thursday, Nov. 7. The commissioners responded by asking staff if an additional public meeting could be added, if more time is needed prior to making a decision. Staff responded that to create the Grant Creek Crossing TEDD with a base year of 2024, an ordinance must be adopted by Nov. 30 to give the Department of Revenue the required 30 days’ notice prior to Dec. 31.

If a continuation of the Nov. 7 public hearing is required, it will occur on Thursday, Nov. 14, at 2 p.m.

Q: What would the proposed development on the property look like?

A: At this time there is not a development proposal for the property. A locally led development team owns the property and is working on their concept. Even though the site is located centrally in Missoula, it is an old gravel pit, and infrastructure necessary to support development was never extended to the property. The developers need to understand the infrastructure needs and costs in order to finalize their development concept, and creation of the TEDD can assist the development team in understanding that. To understand the type of development possible on the property once infrastructure needs are identified, look to the Commercial Center zoning in the Missoula County Zoning Regulations. Any uses that are listed as permitted uses in the Commercial Center zoning designation are allowed on the property.

Q: Can creating a TEDD change the zoning?
A: No, creating a TEDD cannot change zoning. Zoning is a regulatory tool that enables the County to enact its growth policy by designating areas for different land uses, development densities and design standards. A TEDD is a funding tool to help build infrastructure necessary to implement the growth policy and support anticipated growth. In fact, one of the requirements to create a TEDD is that the defined geographic area is already zoned in accordance with the growth policy.

Q: Has Missoula County consulted with the affected taxing jurisdictions?
A: Yes. Missoula County has been working with taxing jurisdictions that will be affected by the creation of the TEDD. There will be at least four meetings with the taxing jurisdictions before the project is complete. In particular, the comprehensive development plan will include language proposed by taxing jurisdictions, and the County will continue to work with the school districts and first responders as this plan is implemented over time.

These jurisdictions include:

• Missoula Rural Fire District
• DeSmet School District
• Missoula County Public School District
• Urban Transportation District
  
  

Q: What is the benefit to creating the Grant Creek Crossing TEDD?
A: TEDDs are one of the only economic development tools available to County government. The Grant Creek Crossing TEDD will allow the County to implement the community’s vision for Missoula, as articulated in the Land Use Element of the Growth Policy, by assisting in the building of infrastructure that supports industry at the Grant Creek Crossing.

Q: What are Tax Increment Financing and Targeted Economic Development Districts, and how do they relate to each other?
A: Montana law allows local governments to borrow against future property tax dollars in localized areas that are in critical need of infrastructure. This tool is called tax increment financing, or TIF. In these specific areas, counties can use TIF to build infrastructure that supports value-adding enterprises.

One of the few areas where TIF is allowed is called a Targeted Economic Development District. TEDD is a designated area adopted by local ordinance that must be zoned for uses in accordance with the Growth Policy and has a development plan in place that supports multiple tenants but is deficient in infrastructure improvements necessary to actualize the development plans. Once an area is designated a TEDD, tax increment from that area can be accrued in a separate account during the duration of the TEDD (initially 15 years with option to extend up to 15 more years to pay back debt service) to be used toward infrastructure improvements in the district.

Q: Will being in a TEDD increase my taxes?
A: No. Being in a Targeted Economic Development District does not in itself increase property taxes. A TEDD simply ensures any increases in tax revenue stay in the area to fund infrastructure improvements, rather than going toward the general budgets of local taxing jurisdictions. Taxpayers located within a district pay the same amount of property tax as they would without the TIF provision.

Q: How is tax increment calculated?
A: The Montana Department of Revenue calculates TIF by subtracting the current year taxable value by the base year taxable value to establish the incremental taxable value. The incremental taxable value is then multiplied by the current year mill levy (minus the exempt mills) to calculate the amount due as tax increment to the TEDD. For this TEDD, the base year will be 2024.

Q: What can tax increment funds be used for?
A: Tax increment can be used by the County to plan for and build infrastructure identified as deficient that supports value-added enterprises. This includes, but is not limited to, transportation infrastructure, water, wastewater, workforce housing, stormwater, broadband, fire protection and life safety services.