An Urban Mixed-Use Development in Downtown Missoula, Montana Executive Summary
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An Urban Mixed-Use Development in Downtown Missoula, Montana Executive Summary Riverfront Triangle Partners, LLC (RTP), is offering for sale approximately five-acres of property for a mixed-use urban infill project (the Triangle) in the heart of downtown Missoula. The project is located in the Riverfront Triangle Urban Renewal District bordered by the Clark Fork River, Orange Street, and Broadway Street. Providence St. Patrick Hospital is immediately north of the Triangle across Broadway Street. The project is also located in the Central Business District, and will serve as the Western gate- way to downtown Missoula. The Triangle will be supported with over 1,000 parking spaces with a large portion being paid for in collaboration with the City of Missoula using tax increment financing (TIF) and parking revenue bonds. The city intends to use TIF to construct a pedestrian bridge to connect the Tri- angle to McCormick Park on the south bank of the Clark Fork River. On May 8, 2017 the Missoula City Council voted unanimously to conditionally approve the Fox Triangle Land Use and Development Require- ments Agreement. As part of the agreement, the City Council approved vacating a portion of Front Street and Owen Street and RTP’s request to vacate an alley. Approval was also granted to rezone the Riverfront Triangle Special Zoning District to OP1 Open Space and CBD-4 Central Business District. Development must include Residential, Office, Retail, and Restaurant along with the hotel / conference center. The two tracts of property is being offered as a whole or can be purchased separately. View of McCormick Park across from Riverfront Triangle and Hotel Fox Aerial Map of Downtown Missoula Interstate 90 Clark Fork River St. Patrick Hospital Riverfront Triangle Downtown Missoula Roam Student Housing Hilton Double Tree University of Montana Aerial Map of Riverfront Triangle Parcels Missoula, Montana A remarkable, vibrant mountain city nestled in the heart of the northern Rocky Mountains, Missoula is a charming, friendly, educated, eclectic, cosmopolitan community that embraces its Western roots. The city of Missoula is the largest city for 200 miles in any direction, thus it serves as the primary center for commerce, goods, services to the surrounding communities and counties. The Riverfront Triangle is a once in a lifetime opportunity to own infill land in the Central Business District of downtown Missoula with over 600 linear feet of Clark Fork River frontage. Missoula’s economy is defined by a diverse group of industries including government, education, the regional U.S. Forest Service headquarters, a thriving medical community, retail, residential and commercial real estate development, and a flourishing high-tech industry. Notable high tech firms with global presence in Missoula include ATG, a division of Cognizant (Nasdaq: CTSH), ClassPass opened its third North American office in early 2018 and has 200 plus employees, 4Cast, an Israeli firm who opened its first U.S. based operation in Missoula, Submittable, a 100+ person home-grown firm, LumenAd, a 100+ person media architecture firm, and onXmaps, a built-in Global Positioning System which attracted $20.3 million in venture capital as it expands its backcountry mapping software. According to the Montana High Tech Business Alliance, high-tech companies throughout the state generated a record $2.0 billion in revenue in 2018, which doubled the revenue from 2016 of $1.0 billion. “Montana had the highest, fastest, median income growth in the nation from 2016 to 2017, almost 5%, which is 2.5 times faster than the rest of the country,” Montana Governor Steve Bullock attributes the pace of income growth primarily to high-tech firms moving into the State (Missoulian, 2018). One of the high-tech companies, ClassPass, opened an office in downtown Missoula in the winter 2018, hiring over 85% of employees from Missoula. In less than a year, ClassPass celebrated their 100th hire, enhancing the Missoula economy. In 2019, Montana high-tech companies are expected to increase wages by 5% (Missoula Current, 2019). Direct Flights to Missoula, MT Seattle, WA Phoenix/Mesa, AZ Portland, OR Salt Lake City, UT Las Vegas, Nevada Minneapolis/St. Paul, MN Los Angeles, CA* Chicago, IL* Oakland, CA* Atlanta, GA* San Francisco, CA* Dallas, TX Denver, CO *Seasonal Missoula Economic Overview High Tech According to the Montana High Tech Business Alliance, high-tech companies throughout the state generated a record $2.0 billion in revenue in 2018, which doubled the revenue from 2016 of $1.0 billion. “Montana had the highest, fastest, median income growth in the nation from 2016 to 2017, almost 5% which is 2.5 times faster than the rest of the country,” Governor of Montana Steve Bullock attributes the pace of income growth primarily to high-tech firms moving into the State (Missoulian, 2018). One of the high-tech companies, ClassPass, opened an office in downtown Missoula in winter 2018, hiring over 85% of employees from Misssoula. In less than a year, ClassPass celebrated their 100th hire, enhancing the Missoula economy. In 2019, Montana high-tech companies are expected to increase wages by 5% (Missoula Current, 2019). In February 2018, onXmaps, a built-in Global Positioning System, attracted $20.3 million in venture capital as it expands its backcountry map- ping. This Missoula-headquarted high-tech company hired Laura Orvidas as its CEO. Previously the Vice President of Amazon’s U.S. Consum- er Electronics division, Orvidas was drawn to the opportunity to transition her skills into a company that was growing, that had great product market fit and a great work-life balance, like many high-tech companies these unique characteristics forecast the enormous growth potential of Missoula (Missoulian, 2018). Education Educational Services employ 7,437 and the University of Montana (UM) is the largest employer in Missoula with 2,851 employees, and a student body enrollment of 9,323 (UM, 2019). Academic units include: College of Humanities and Sciences, Phyllis J. Washington College of Education and Human Sciences, W.A. Franke College of Forestry and Conservation, College of Professions and Biomedial Sciences, College of Business, School of Journalism, Alexander Blewett III School of Law, College of Visual and Performing Arts and the two-year Missoula College. Missoula County Public Schools (MCPS) serves 8,500 students and has over 1,000 employees. Healthcare In 2017, the Health Care and Social Assistance sector employed 9,095. Providence St. Patrick Hospital, located directly across from the River- front site, is the second largest employer in Missoula County, employing 1,600 healthcare professionals. Providence is a Level II trauma center with 327 beds, with talks of an expansion plan with over $100 million in funding to date (Providence, 2019). Community Medical Center employs 1,245 at their 30-acre campus in Missoula with competencies in primary care, women’s care, pediatric care, oncology and rehabilitation services (Community Medical, 2019). Retail Trade The proximity to recreation makes Missoula a hub for tourism with retail trade employing 11.5% of the employed population. According to the Missoula Current, tourism contributes to $310.0 million a year to the economy (Missoula Current, 2017). The University of Montana Bureau of Business and Economic Research recognized tourism as one of Montana’s top economic drivers with 12 million non-resident visitors, $3.5 billion in spending, and 52,000 jobs per year. Overview of Hotel Fox Hotel Fox Partners, LLC is developing a 195-key, four-star hotel with ancillary meeting rooms, catering services, fitness facilities, leisure and spa amenities and a 46,000 square foot conven- tion facility funded by the City of Missoula. In addition, 48 for sale condominium suites, 35 in- cluded in the hotel rental pool will be located on the upper floors. The Missoula Conference Center and Hotel will serve as the centerpiece for the Fox Triangle Development, setting the tone of the mixed-use Lifestyle destination. As a dynamic aspect of the Triangle’s riverfront improvements, the Hotel and Conference Center will attract other businesses and professionals wanting to be a part of this burgeoning urban experience. The Plaza and Riverfront public developments will draw visitors beyond the hotel, conference center and office building guests to further spur activity in the vibrant and fresh Triangle area, enticing retail, residential and restau- rant opportunities for our development and surrounding areas. Unique in Missoula’s downtown, the Conference Center and Hotel’s architectural aesthetic is a departure from the more typical traditional varia- tions of historic-themed buildings. Slanting to a more contemporary architecture, the design elements feature clean and simple lines, extended flat roof overhangs, unique forms, expansive windows bringing outside in. But in keeping with a sense of place and Western culture reference is made to timber craftsmanship, the solidness of black steel, the natural warmth of cut and fitted stone, and the integration of the surrounding natural landscape. While no clear definition is applicable, the look could be described as “Modern Mountain”. Conference Center/Hotel Clark Fork River Orientation Condominium Floors 8 - 10 Hotel Floors 2-7 Triangle Plaza Pedestrian bridge Indoor Pool Plaza Restaurant/Whiskey Bar Riverview Patio Public lawn sloped to conceal garage River walkway Event Deck Gaming Room Great Hall River Prefunction Elevated Event Lawn Conference Center and Hotel with Clark Fork River frontage Conceptual Project Rendering and View of Downtown Missoula Conceptual rendering looking to the north over the Clark Fork River View of Missoula looking east toward the University of Montana SCOTT STRELLNAUER Owner-President-Broker [email protected] Cell: 406.249.3557 Scott has been a licensed Realtor in Montana for over 30 years. He has worked on a variety of projects throughout his career ranging from commercial/retail development to high-end residential sales.