MRA: What You Should Know

How the MRA Works with Developers and Non-Profit Agencies 

The Missoula Redevelopment Agency partners with private developers and non-profits to eliminate blight in Urban Renewal Districts. Under state law, Tax Increment Financing (TIF) can assist developers with the cost of public improvements such as curbs, gutters, sidewalks, streets, utility main extensions, and deconstruction.  

As of 2021, a state legislative change allows tax increment funds to be used for income restricted workforce housing.  

How the MRA Works with Commercial Businesses 

The Missoula Redevelopment Agency has used TIF to fund public improvements at commercial businesses, like hotels and local banks. TIF contributions are used for things like deconstructing vacant buildings, improving sidewalks in the public right-of-way, and burying utility lines. In one instance, this allowed for a multi-story building to be built on-site for a local bank.  

If not for the increased taxes paid by commercial businesses after redevelopment, there wouldn't be adequate money (tax increment) to help other public improvement projects in Urban Renewal Districts (URD), projects like income restricted workforce housing. 

How Property Taxes Outside an URD Compare to Property Taxes Inside an URD 

Property owners pay the same property tax rate as those outside the District; however, as property values increase over time the difference between the base year and current year property taxes are captured by the District to reinvest into public improvements.

How Long an URD Can Last 

As outlined in state law, URDs can exist for 15 years, unless bonds are issued. If revenue bonds are issued, 40 years is the maximum length of an URD.  

How the MRA Operates 

The Missoula Redevelopment Agency is a department of the City of Missoula. Its budget goes through the same process as other departments and is approved by City Council. As a practice, the Missoula Redevelopment Agency also receives an additional layer of approval from the Missoula Redevelopment Agency Board, whose members are appointed by the Mayor and approved by City Council.