A private developer broke ground on a portion of a mixed-use development near the Southgate Mall Tuesday afternoon, roughly two months after the Missoula City Council approved the contract and amid an active lawsuit against it filed by local residents.
Miramonte Companies is underway with extending Harve Avenue adjacent to Paxton Street to add water, sewer and street infrastructure to build townhomes as part of the first phase of the $100 million project.
"That project is delivering diverse home types, new connectivity and new public park space," Missoula Mayor Andrea Davis said during a budget hearing Wednesday. "The private sector is beginning construction as we speak, starting with public infrastructure."
The City Council approved selling 15 acres to Miramonte in May for $7.2 million, along with spending $10 million in Tax Increment Financing dollars for public infrastructure.
About $5 million is planned to be paid back by the developer, who envisions building market-rate single-family homes, townhomes, condos and apartments alongside commercial buildings and a 1.6-acre public park.
The first phase of work removed several trees and plants on the section of land, including a large tree at the intersection of Ernest Avenue and Schilling Street, city engineer Troy Monroe told the City Council in an email Tuesday that was forwarded to the Missoulian.
The trees were approved for removal by the city urban forestry department, Monroe said.
The entire 15-acre property is expected to add somewhere between 225 to 250 housing units, but only a portion has been officially transferred to Miramonte, according to city attorney Ryan Sudbury.
Sudbury told the Missoulian Wednesday morning that the section of land behind Bob Ward's and another 2.9-acre parcel near Mary Avenue are now owned by Miramonte.
The move comes amid an active lawsuit challenging the sale of the land by nearby neighbors, who argue in court filings that the public did not have the proper ability to participate in the project, among other claims, the Missoulian reported.
Carrie Schreiber, a neighbor to Midtown Commons who opposed the deal, called the work upsetting and brazen to move forward while the lawsuit continues.
"The destruction of the trees on the Midtown Commons project began yesterday before any vacating of easements and before the legal claim has even been read out by the judge," Schreiber told the council during public comment on Wednesday. "I am sorry I am really frazzled at this point."
No hearing has been set by the judge in the case.
Most of the area, which residents call "the grove," is still under city ownership.
City officials previously planned on approving boundary line relocations on that section of land to plat new roadway connections before deeding the property to Miramonte. No hearing has been set for the boundary line relocation.
Miramonte Companies is an Arizona-based homebuilder with a growing Montana portfolio.
A phone call to a representative for Miramonte Companies and a phone call to Concept Construction Company, a Missoula business listed on Miramonte's website, was not immediately returned.