Measure seeks more control over MRA; opponents see bureaucracy

Martin Kidston

(Missoula Current) One of the city’s strongest tools to create jobs and drive economic development could fall into the well of City Council politics under a proposal introduced on Wednesday.

As written, the measure would require the City Council to approve any project considered by the Missoula Redevelopment Agency that’s valued at more than $50,000, be it a sidewalk project or a housing development.

The measure’s four sponsors including Sandra Vasecka, Bob Campbell, Daniel Carlino and Kristen Jordan, say that doing so would bring accountability to MRA’s appointed board. But opponents say it would bring the city’s strongest economic driver to a grinding halt and leave it mired in another layer of political bureaucracy.

“If we (City Council) are inserting ourselves into the equation, it’s going to change the trajectory of this program,” said council member Gwen Jones, who opposed the measure. “It’s going to add a level of unpredictability that will impact businesses.”

The four council members behind the proposal in recent years have all been critical of MRA and what they perceive to be a lack of oversight in the agency’s use of tax increment to drive economic growth through redevelopment.

While MRA’s investment of tax increment is set by state law and guided by the goals set by City Council, backers of the measure want more say on where MRA directs its investments. To do that, they want the City Council to approve any expenditure worth more than $50,000.

“As elected city officials, we should have a say in how those dollars are being spent,” said council member Sandra Vasecka. “I am a fan of some uses of tax increment. I just think it would be beneficial to us and the taxpayers if we had this extra level of security.”

Requiring City Council approval of any expenditure over $50,000 could place hundreds of projects before council each year. One council member on Wednesday placed the figure at more than 600.

Regardless of the exact figure, MRA Director Ellen Buchanan said the proposed measure would impact “almost every” project that goes before MRA’s board of commissioners for consideration.

“Virtually almost every project that goes before the MRA board would come before City Council if this resolution were in effect,” said Buchanan. “Almost everything that comes to the board would come to City Council.”

History of investing

MRA historically has invested tax increment into public improvements that coincide at times with private development, such as street lighting or other basic infrastructure ranging from water to power. MRA also has a robust sidewalk program and has helped build out the city’s trail network.

Buchanan said City Council already has sway over most of what MRA does. It must approve any land purchase or the issuance of debt needed to fund large infrastructure projects like parking garages or the current work taking place off Scott Street.

City Council also approves MRA’s budget. It approves all urban renewal districts created by the city, the plans for those districts, and the city’s various master plans, which ultimately guide MRA’s investments.

“Every project that comes through the door is vetted through a number of filters before it even gets to the board,” said Buchanan. “It’s vetted for the legality of tax increment expenditures. It’s vetted for the compliance with the city’s strategic plan. It’s vetted for compliance with the urban renewal plan. If there is a master plan for that particular location, it’s vetted for that. One of the things we look at is if a project meets the stated goals that have been adopted by (City Council).”

While sponsors of Wednesday’s measure said MRA and its investments have proven valuable, several sponsors have worked to block past appointments to the MRA board and have opposed certain investments for political purposes.

Council member Daniel Carlino maintained his criticism on Wednesday, saying that while MRA has done some good, it also has a history of investing alongside projects he sees as undeserving of tax increment.

“I don’t agree when we’re using taxpayer dollars to redevelop banks, taxpayer dollars to redevelop hotels and taxpayer dollars to develop luxury, market-rate housing,” he said. “These are all opportunities we could have used better to invest in the community.”

But other members of council disagreed with Carlino’s take, saying that state law – not local politics – guide MRA’s investments. They also noted that private investment in the community, whether favored or not, provides the tax revenue needed to fund projects that are favored, mainly housing.

Over the last few decades, MRA has invested more than $10 million to complete nearly 2,000 housing units across Missoula, including 850 income-restricted homes. The agency more recently invested $7 million to help create more than 500 additional housing units.

Last year, freed by changes to state law, MRA also adopted a workforce housing program, allowing it to invest tax increment into vertical housing construction for the first time.

“MRA is really our key affordable housing tool, and the reason we have that is because we’ve built a robust program over the years,” said Jones. “And it’s not just affordable housing, it’s business development, which goes to job creation. This (proposed measure) makes it far too political. Politics doesn’t serve that dynamic well.”

The proposed measure failed 7-4 on Wednesday.