City of Missoula moves to dismiss Midtown Commons lawsuit

Attorneys for the City of Missoula asked a judge last week to dismiss a lawsuit over a public-private development deal in Midtown, arguing the city provided opportunity for the public to voice their opinion on the land sale. 

The lawsuit centers on 15 acres of land, known as Midtown Commons, that the city sold to private developer Miramonte Companies in May to build new homes, commercial buildings and a public park by the Southgate Mall. 

Neighbors of the development, who formed a group called Rooted in Environmental Justice, sued the city in July because they contend the process did not include enough public participation, the Missoulian reported.

The neighbors' lawsuit also argues removing existing trees in the area violates the Montana Constitution's right to a clean and healthy environment. In their suit, they're asking for an environmental review and a hold on the sale.

Attorneys for the city wrote in an Aug. 11 brief that local government provided ample opportunity for public comment throughout the process.

"The City went through an extensive public review process that ultimately led to the sale after a properly noticed public meeting at which the public, including members of REJ, had the right to voice their objections to the sale," the brief stated. 

The land near the Southgate Mall had sat vacant for decades and was privately owned, but neighbors often used the open space to recreate. The city said residents effectively trespassed on the land. 

The city purchased the land in 2024 and then entered into an exclusive negotiating agreement with Miramonte, who planned about 250 new housing units on the land. 

The city argues that it offered several avenues for the public to comment on the development deal over the next year, including a design workshop for a 1.6-acre public park. 

"Clearly the public had ample opportunity to participate, and members of REJ exercised these opportunities," the attorneys wrote. 

The brief also contends a special city task force created by Mayor Andrea Davis that created a new policy for excess city lands did not have to provide public access to its meetings. 

Another section of the case centers on a 2.2-acre parcel that the city also purchased in the area and then transferred to Miramonte, which the attorneys argue followed state law. 

Rooted in Environmental Justice also contended the city violated the neighborhood's right to a clean and healthy environment by not conducting a proper environmental assessment on the land. 

The city argues that an environmental assessment is not required under the Montana Environmental Policy Act (MEPA), which regulates state agencies, not municipal governments. 

"The City, just as a private citizen, was free to purchase and sell the subject properties pursuant to its land use development plan without preparing an environmental assessment or environmental impact statement under MEPA," the attorneys wrote. 

Additionally, the city's brief argues that Miramonte, which was not a party to the initial lawsuit, must be included in the case because they have already received some of the property for the development.

The motion from the city asked Missoula County District Court Judge Shane Vannatta to dismiss the case. No decision had been made as of Monday afternoon. 

The lawsuit comes as Miramonte broke ground on a portion of the development near Harve Avenue, where townhomes and a public street are planned, the Missoulian reported.

Members of Rooted in Environmental Justice have also spoken at several public events asking the city to stop the development, including IndigiPalooza and the Reserve Street Public Working Group. 

Mary Giuliani, one of the members of the lawsuit, said at a meeting Friday that she was feeling confident about their prospects, although she noted she is not an attorney. 

"I still think we have a very strong complaint going forward. I do not think they addressed several of our most important issues," Giuliani said. 

While some of the land has been sold to Miramonte, the city still needs to hold an additional public hearing to formalize roadway and park connections on the rest of the property before officially transferring the land.