MISSOULA, Mont. — A targeted economic development district is coming to part of Missoula’s Grant Creek neighborhood after more than a month of consideration.

The 86-acre parcel and former gravel pit are located off North Reserve Street, bordered by Schramm Street on the south end and along Michael Road, which runs through the property.

Missoula County commissioners approved TEDD after three public hearings, during which entities like the Missoula Rural Fire District expressed ongoing concerns.

“Currently, our residents pay taxes to the fire district in exchange for public safety services,” said Ben Murphy, chairman of the Missoula Rural Fire District Board of Directors. “With the implementation of TEDD, some of our taxpayers will pay for services rendered to other residents of the fire district who will not pay for those services.”

Murphy was referring to tax increment financing. This involves funding TEDD zones, like the one now approved off the northern reserve. TIF takes new taxable revenue from an area and reinvests it directly into that area to encourage development.

The 86-acre property represents “a unique opportunity for infill development,” said Andrew Hagemeier, the county’s community and economic development director.

“This property is not dirty, but it is a little difficult to develop,” Hagemeier said. “There is a lack of sewage, storm water and the roads to access the property are in poor condition. They are substandard for the type of development that could occur.

The necessary public infrastructure improvements will cost more than $10 million, Hagemeier said.

TEDD’s development plan states that the property “has potential for industrial and commercial development.”

Typically, entities serving TIF lands do not see an increase in revenue over the duration of the funding period. One of the biggest concerns for rural fire districts is increasing demand without increasing revenue.

County commissioners countered that concern by citing a written commitment from Missoula Fire Chief Gordy Hughes to provide services to the area.

County Commissioner Dave Strohmaeir read Hughes’ letter: “Missoula Fire Department Station Number 4 is the closest fire station and will continue to respond once TEDD is established. Additionally, the new station number 6 will likely be cited in a location that will likely improve response capability in this area.

Missoula County has reduced the number of voted levies submitted to TEDD in response to concerns from the Hellgate Elementary School District and the Missoula Rural Fire District.

Levies voted by the Missoula Rural Fire District, permissive levies and approximately 10% of general plants will be excluded. A factory costs $1 for every $1,000 of assessed value.

Permissive school district levies for transportation and tuition should also be excluded. This reduces the “potential for increase” by 12%, Hagemeier explained.

The increase is the additional tax revenue generated once new development begins in an area receiving tax increment financing, which funds future development in the area.