Midtown brewery

A three-story building is proposed for the northwest corner of Durston Road and North Seventh Avenue.

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A three-story building with a brewery, two floors of apartments and a rooftop gathering spot could go up in the Bozeman corridor dubbed as Midtown.

The building is proposed for the northwest corner of Durston Road and North Seventh Avenue where a Subaru repair shop once stood. The project includes ground-floor commercial space and 16 residences on the upper levels.

The applicants are Bozeman company Lifestyle Solutions Real‐estate.

Colin Ruh‐Kirk, the property management developer, said plans first shaped around a new beer hub in Montana called LBP Brewery — a name that stems from Montana’s claim to be the “last best place.”

When the developers found the spot in Midtown, they expanded those plans.

“It was important to us to create a multi-purpose building ... to bring life back to the Bozeman center and help steer away from and alleviate the urban sprawl development pattern that has encompassed city growth for the last several year,” Ruh‐Kirk said.

The front of the building’s design combines brick with steel, which Ruh-Kirk said was an attempt to give it a “downtown Bozeman feel.”

The development is proposed in a part of town city officials have worked to revive for more than a decade. Some view North Seventh Avenue as a place that can take taller buildings with a mix of use — like combining housing with shops and places to eat — as other spots in Bozeman fill up.

In 2006, Bozeman leaders designated the area as an urban renewal district. In 2017, commissioner created the Midtown Tax Increment Financing District to use property taxes to support investment in the area.

Even so, development has been slow to arrive.

The Ruh Building applicants and Bozeman city staff are negotiating what support the project could receive for picking the district as the place to build and how that development will unfold.

The building would be the third and largest project to receive an award through the program. City staff have recommended an incentive award between $635,600 and $726,666.

An urban renewal board runs the Midtown program, but has to seek commission approval for grant awards beyond $50,000. On Monday, city commissioners could set a public hearing on a resolution to designate the Ruh Building as one of those investments.

David Fine, city economic development specialist, said the project is a sign of developers having more interest in the corridor.

“This is not about enriching developers,” Fine said. “This program is about making North Seventh the kind of corridor we’ve been talking about it being for 13 years.”

With data from the property owners, Leland Consulting Group estimates the building would provide an annual net tax revenue increase of $76,679 for the district. The projected increase in the property value hits roughly $5.6 million.

Ruh‐Kirk said once the development agreement is in place, the next step will be to secure a permit to build. He said construction could take eight months and begin as early as March.

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Katheryn Houghton can be reached at khoughton@dailychronicle.com or at 582-2628. Follow her on Twitter @K_Hought.

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