City council looks to alter Missoula's tax increment financing system

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Homeword’s 27-unit Sweetgrass Commons is currently the only affordable housing project in the Old Sawmill District and offers apartment sizes from studios up to three-bedroom units. The Missoula Redevelopment Agency spent $488,000 in tax increment financing to purchase a parcel of property for the project and sold it to Homeword for less than half that price.

Kurt Wilson David Erickson

The Missoula City Council has taken a step to change how the Missoula Redevelopment Agency uses tax increment financing in order to allow more input from school districts, the city council and the county commissioners.

The changes would also prioritize affordable housing, child care and infrastructure.

On Tuesday, the city council’s administration and finance committee unanimously approved a resolution that would cap the cumulative total incremental taxable value of all urban renewal districts in the city at 9% of the total taxable value of the city.

In fiscal year 2022, that number stands at 8.7%. Anything over that cap would be remitted to the other taxing jurisdictions, such as school districts

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