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5/26/2025
Early discussion takes aim at downtown development
Downtown Great Falls is a gem, said Planning and Community Development Director Brock Cherry last week. It’s one of the elements that persuaded him to move to the area years ago.
Cherry led a meeting in the Civic Center to discuss a draft program to help fund housing development downtown using tax increment financing (TIF). The target of this funding would be so-called “workforce housing,” which is aimed at lower-middle-income families that make 60% to 140% of the area median income. For a single person, that is about $39,000 to $91,000 per year, according to one measure of area income. That figure increases for dual-income households.
The same demographic could also be called “missing middle,” a term that NeighborWorks Great Falls Director Sherrie Arey used last year when describing a new loan program for prospective home buyers. It’s all part of a broader effort to increase the housing supply in Great Falls.
A 2024 housing market report from Great Falls Development Alliance showed that half of the housing in the Great Falls region fell within the range of $150,000 to $299,999. An analysis in the report suggested that many buyers could afford more expensive housing but settle for less expensive homes because that’s what is available. This could create more competition for lower-income buyers who are limited to the lower price point. The report estimated that future housing demand will be concentrated in households earning above $50,000 annually, which is reflective of the workforce demographic.
The goal of last week’s meeting was to workshop the details of a potential policy to support the development of workforce housing, which became an eligible TIF expense in 2021 but still requires the city commission to approve a local program. The use of TIF funds for housing development is currently focused only on the downtown urban renewal TIF district. The district already has programs that help fund facade improvements, safety upgrades and other needs.
In short, tax increment financing captures increases in property taxes as property values increase in the district. Those funds are reinvested into the district for targeted purposes that support long-term growth. An increase in renovated residential property is viewed as a way to stimulate a neighborhood economy of shopping, dining and living downtown, where property owners and developers might be hesitant to work on the aging buildings.
“We have a lot of empty vacant space downtown,” Cherry said. “In particular, on the second and third floors.”
While still in draft form, the proposed TIF program has a few key elements. First, it’s a reimbursement program. Eligible expenses would be paid from the TIF district fund once the project is completed and verified to serve residents within the income range. The assistance also requires a match of at least 50% by the developer, which is similar to other TIF programs in the city.
The proposed funding limit per project is $150,000 for workforce housing, and eligible expenses are limited to permanent infrastructure and engineering rather than items like appliances, countertops or paint, according to a draft program document.
“We really try to keep it to the brick-and-mortar construction that’s taking place,” Cherry said.
Developers, property owners and other stakeholders in the audience brought up some challenges with the proposal, including how phased developments of large downtown buildings could be eligible. If a TIF fund recipient is awarded the maximum $150,000, the draft program imposes a 15-year interval before they can make another application. The definitions for “project” and “parcel” will be crucial for developers to make financing plans.
The Great Falls City Commission must pass a final approval of a workforce housing TIF program. Cherry hopes to have a final proposal submitted to the commission this summer.
“So that maybe next building season, we begin to see some projects, some momentum,” he said.
Photo op
Activity has returned to the boat landing at Broadwater Bay as warmer weather moved into the area. The National Weather Service is forecasting some showers early this week with comfortable spring temperatures in the high 60s and 70s.
Calling all photographers: Submit a photo for Great Falls This Week to [email protected].
Verbatim
“It’s not a perfect bill. But I will tell you that this bill was very bipartisan. There was a lot of discussion, and I really appreciated the leadership on the Republican side that worked with the leadership on the minority side to make these bills happen. It’s a good compromise.”
— State Rep. Jane Weber, D-Great Falls (HD 19)
Weber was discussing the package of property tax bills passed by the Montana Legislature this spring that aimed to reduce taxes on primary residential properties while increasing taxes on second homes and short-term rentals. The comments came as part of a legislator town hall on May 28 hosted by Citizens 4 Government Transparency.
Also on stage for the town hall was state Rep. Steve Fitzpatrick, the Republican House majority leader, who also described a collaborative process and a tough balancing act involving all the different property tax classes and the entities that receive tax proceeds.
Might be fun
The fourth-annual Taco Takedown event is Friday at The Heritage Inn. A general admission ticket of $45 covers drinks and tacos from local businesses, who are competing for the people’s choice award for the best taco. More information can be found here.
Public notice
The Great Falls City Commission will interview candidates for the Great Falls Public Library Board of Trustees on Tuesday. Five candidates have applied for one available seat: incumbent board member Jessica Crist, London Griffith, Ray Bukovekas and Janet Denise Thomson.
The interviews begin at 4:30 at the Civic Center. Candidate applications can be found here. At a future meeting, the commission will appoint a candidate for a five-year term.
During its regular meeting, the city commission will hold a public hearing on the Meadowview Village subdivision, which is proposed for 27 acres along 46th Street and Central Avenue. Plans call for 163 single-family homes over 10 phases of construction, according to city documents.
The commission will also hold a public hearing to establish water, sewer and storm drain utility rates for the coming fiscal year. City staff have proposed two options, including a 10% increase in rates or a 27% increase, the latter of which aims to build a fund to support infrastructure development.
The regular city commission meeting begins at 7 p.m. Tuesday at the Civic Center. You can read more information about Meadowview Village and the proposed utility rates here.
