Targeted Economic Development Districts
Tax Increment Financing (TIF) allows local governments to generate revenues in areas designated as infrastructure deficient and are unable to support new industry or development due to this deficiency. Infrastructure includes public services like roads, sewer, water and utilities.
To do this, counties first establish the boundaries of the infrastructure-deficient area, called a Targeted Economic Development Districts (TEDD). As improvements are made within the TEDD, and as property values increase, the incremental increases in property tax revenue are set aside in a fund that can only be used to pay for further improvements within the TEDD (instead of coming to the County for general use). TEDDs are temporary and typically sunset after 15 years, after which all the revenue they generate goes back into the general county coffers.
Private businesses can request TIF funding to help pay for public infrastructure needed to further grow industry in the TEDD. For example, a business may need access to more water than is currently available in the TEDD, so they can request TIF funding to finance building a water system. In turn, that added public infrastructure attracts additional businesses to the district, spurring economic development.
Click the arrows below to learn about the TEDDs in Missoula County.
The Bonner Mill industrial district is located at the former site of the Stimson Mill in Bonner. The site provides an excellent location for industrial activity that takes advantage of existing infrastructure including rail service and large industrial buildings associated with the site’s former occupant. The tax increment industrial district was formed in 2012, and since that time over 650 industrial jobs have been created.
In 2021, Missoula County partnered with the property owner to use $3.7 million in tax increment financing to remove over 40,000 cubic yards of PCB-contaminated material, which covered 2.8 acres of land.
Click here to read the Bonner Mill Tax Increment Financing Industrial District Plan.
The Bonner West Log Yard TEDD was established in 2014 in Bonner. The TEDD encompasses approximately 117 acres and is located east of US Highway 200. As of 2020, the property is under new ownership and was subdivided into 28 lots. Lots 1 through 27 are zoned industrial and Lot 28 is zoned agricultural working lands. The site's proximity to both Highway 200 and Interstate 90, as well as the rail line, make it a logical site for industries relying on good access to regional and national markets. The existing warehouse building is currently being operated by a film studio but may be available for sale in the future.
In 2023, Missoula County worked with the nearby community of West Riverside to understand their concerns related to infrastructure in their area, to learn the neighborhood’s vision and establish a path to work together. Click here for more information.
Click here to read the Bonner West Log Yard Comprehensive Development Plan.
In 2016 the Airport Industrial Development District sunsetted after 25 fruitful years. Substantial new industrial tax base was created because of the existence of the TEDD. When it sunsetted, taxing jurisdictions, like schools and rural fire, received a windfall in tax revenue that was only possible because of the district.
In 2017, the City of Missoula annexed the Airport Industrial Development Park, creating additional tax revenue for the City of Missoula. City laws and zoning govern the district, and the City of Missoula provides services to the area. If you are interested in developing your business to this area, please contact Development Services at the City of Missoula.
Exiting Missoula County interests from the Missoula Development Park within the City limits is an ongoing process. To follow that transition please visit missoulacountyvoice.com.
The Missoula Technology District is a donut hole within the Missoula Development Park that is still under County jurisdiction. It has peculiar zoning because of state statue it was created under, which has since been repealed. The Technology District will sunset in 2025 and is expected to be annexed by the City of Missoula at that time.
The Wye area has been identified by County planning and zoning as a key area to focus growth in Missoula. In general, it takes its name from the "Y"- shaped intersection of Interstate 90 and U.S. Highway 93, approximately 8.8 miles northwest of the City of Missoula.
Existing conditions at the Wye that encourage growth include relative proximity to the City center, hospitals, employment centers, Interstate 90, Highway 93, Missoula Airport, rail, rural fire, schools, access to open lands and sewer service. It is also worth noting that this area is attractive for growth because it is not prime farmland in need of preserving. In looking at long-term population growth projections over the next 10 to 20 years, it is clear the Wye needs a street network, storm and ground water management, a central water and wastewater system, and workforce housing to support value-adding enterprises that will, in turn, contribute to the overall economic well-being of the County.
In 2020, Missoula County created the Wye Targeted Economic Development District in support of retention, expansion and recruitment of value-adding economic development projects based on a previous finding of infrastructure deficiency for industry in the area.
Following the 2022 adoption of zoning that calls for even greater industrial growth in the area, Missoula County adopted another resolution of infrastructure deficiency in August 2023 which laid the groundwork for the creation of an additional TEDD at the Wye, surrounding and separate from the existing Wye TEDD created in 2020. To differentiate it from the existing Wye TEDD, the area being considered is referred to as the Wye 2 area.
The Missoula County commissioners adopted an ordinance creating the Wye 2 Targeted Economic Development District on Nov. 9, 2023. Click here for more information.
Click here to read the Wye 1 Comprehensive Development Plan.
Click here to read the Wye 2 Comprehensive Development Plan.
The Missoula County commissioners established a Targeted Economic Development District at Grant Creek Crossing in Nov. 2024. This site encompasses a former gravel site between Reserve Street and I-90. This designation allows the County to address infrastructure gaps that have hindered economic development in the area. Through the TEDD, Missoula County aims to enhance infrastructure like transportation, water, wastewater, and broadband to attract and support value-adding economic development, such as manufacturing, tech research and tourism, which will contribute to local economic growth. Click here to learn more.
Click here to read the Grant Creek Crossing Comprehensive Development Plan.
Public comment
Local government works best when we hear from people like you! Resolutions regarding TEDDs come before the Missoula County Commissioners at public meetings.
Here's how you can submit public comment:
- Looking for a specific project? Visit Missoula County Voice, the County's engagement platform to submit comments and questions.
- Attend a public meeting, either virtually or in-person.
- Call the commissioner's office at 406-258-4877 to leave a voicemail for a commissioner directly.
- Send a message to the Commissioners' Office.