Missoula’s downtown saw $13.5M in investment in 2023

There were 16 new business openings in the downtown area to go with 22 closings. Many people in the community were dismayed to note that 10 restaurants closed their doors last year, with most owners citing staffing shortages, wages and increasing food costs.

The number of closures is quite a turn from 2022, which saw a record-high 34 business openings to just seven closings.

Still, there were bright spots last year for downtown. The largest private project is the massive overhaul of the Mountain Valley Inn to LOGE Camps, which is still underway. A new restaurant and bar called The Stables is being built next to Cranky Sam Public House, and the new Tres Bonne restaurant opened up on the corner of Higgins and Front. There were large interior renovations at Providence St. Patrick Hospital and Western Montana Mental Health Center. An upgrade to the Northside Pedestrian Bridge, publicly funded by the city, is the largest infrastructure investment in the downtown core for 2023.

“2023 ended leaning towards business as usual,” said Christine Littig, the Missoula Economic Partnership’s business development director. “Some businesses doing well, some not. Growth for some, not for others. No one single explanation answers the pressures and concerns of all industries. Those of us working to support businesses continue to work harder than ever to understand how businesses are succeeding and how we can support businesses still navigating challenges.”

Residential investment declined significantly from 2022 to 2023, with just over $900,000 spent last year. Residential investment in 2022 was dramatically higher at $6.6 million, primarily due to the Hogan Senior Living project at 230 S. 6th Street West and the yet-to-be-built 12 residential units on the 300 block of East Front Street.

Big projects from 2023 include the completion of major housing developments adjacent to downtown, including the 400-unit Villagio Apartment Complex on Scott Street, the completion of The Reed Condos on Third Street and the development of the town homes in the Old Sawmill District.

“Most other private investments were minor remodels and roofing projects,” the Partnership’s report stated.

The Partnership said there are several large projects on the horizon for the coming years, including the development of the former Missoulian building, which is in the planning stages.

The former library block on Main Street will get some sort of mixed-use development once the city decides what is appropriate. In the Old Sawmill District, the developers are planning on building “warehouse-style” housing units after the completion of a town home project.

The city will be redeveloping the former federal building in the coming years, and construction is anticipated to start on a 12-unit condo building on East Front Street in 2024.

“Both the DoubleTree Hotel and the Holiday Inn downtown are continuing with major renovations,” the report stated. “The former site of the Sleepy Inn is on the market and ready for development. Development of the Riverfront Triangle continues to be a challenge.”

The Riverfront Triangle, located on the corner of West Front and Orange, has had many suitors but so far no project has come to fruition.

“In 2023, the City of Missoula was also awarded a $25-million-dollar federal RAISE grant for five specific transportation projects in Downtown Missoula,” the report concluded. “This is the largest acquisition of public funding for downtown Missoula in the last 50 years. Those projects include conversion of Front and Main to two-way streets, conversion of Higgins Avenue to a three-lane from Broadway to Brooks, new gateways to the riverfront parks, widening of the riverfront trail and a new ADA ramp from the Beartracks Bridge to the waterfront trail.”