A Missoula developer has significantly scaled down a proposal for a large apartment complex in Missoula, and city officials say another massive proposed housing complex will also be revised down.

On Thursday, the Missoula Redevelopment Agency approved plans for a scaled-down version of Bissinger Place, which was originally proposed in the spring of 2022 .

An architectural rendering of what Bissinger Place was going to look like before being revised. The concept has been scaled back now to three stories instead of four, but there was no updated rendering presented.

Back then, the MRA board unanimously approved $269,000 in Tax Increment Financing for Bissinger Place to help the developers with asbestos remediation, deconstruction of aging homes on the site, utility relocation and right-of-way improvements. The board also approved $50,000 in Facade Improvement Program grant funds for paint removal, windows, doors, an overhead door replacement and awnings. The project is located at 903 S. 1st W. near Loyola High School's football field.

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Back in 2022, the project was proposed to be a 61,500-square-foot, four-story, mixed-use development with 42 rental housing units and commercial space.

The lot was deconstructed, but no construction has started on the project.

Now, developers Frank Scariano and Mike Morgan of Bricks and Spurs LLC have told the MRA that they're scaling down the project to be quite a bit smaller. It will now be reduced from four stories to three stories and there will be no elevator in the building. Also, it will be reduced from 61,500 square feet to 37,500 square feet, and the basement will be removed.

The number of housing units will be reduced from 42 to 39 and the luxury apartments have been removed. There will be no private rooftop terrace above the historic Bissinger Warehouse.

The developers also are extending their timeline for finishing the project from the end of this year to the end of 2029.

Construction costs have been reduced from $13 million to about $8 million. Now, the estimated annual property tax revenue from the new development is expected to be around $105,000 per year rather than $130,000 per year.

Annie Gorski, the MRA's deputy director, told the board that the developers reduced the project's size due to increased construction costs and reduced market demand for commercial space. She said the commercial space will include office space for Scariano Construction and possibly a coffee shop and restaurant.

She said the board needed to approve the original $319,000 in assistance for the project because it was significantly modified.

"The modified development scope still aligns with goals in the city strategic plan, including...(to) create housing and economic health through strong community partnerships," she wrote to the board in a memo.

Gorski and the MRA staff recommended that the funding still be approved, and the board unanimously agreed.

The site lies within Urban Renewal District II, and in all URDs the MRA controls the new property tax revenue of projects. The expected payback of TIF on the project, from the new taxes compared with what the aging buildings are generating now, will now take four years instead of three, Gorski said.

Melanie Brock, a member of the board, wondered how many other projects that the MRA board has approved for TIF funding will also be scaled down.

Ellen Buchanan, the director of the MRA, said at least one other large project will also likely be scaled back.

She said the Casa Loma project , a massive $30 million, 132-unit housing project proposed near the Missoula County Fairgrounds, will probably undergo a "significant reduction in scope."

"Much more so than (Bissinger Place)," Buchanan said.

She said the developers are having "internal discussions" about that project.

Casa Loma was originally proposed in the spring of 2022 by developers Kelly Gill and Nate Richmond of Blueline Development. They requested $2.2 million in Tax Increment Financing from the MRA for public street and sidewalk improvements, utility relocation and deconstruction of existing structures. After a lengthy discussion, the agency's board in 2022 voted unanimously to grant the funding when the project was completed, which was expected to be this year.

Now, obviously, that won't happen because construction hasn't even started. The board may be asked to approve a modified scope of the project sometime in the future.

Buchanan said that the board must carefully weigh proposals that are scaled down because the city wants to be sure the original investment of TIF maintains "that balance of proportionality."

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