Developer Nick Walton, the CEO of Reuter Walton Development, said they thought the lot was appropriate for denser development, since it is in the B-3 zoning area for the downtown district.

“We think it really helps to continue Main Street to the west,” Walton said.

After Walton bought the lot, the restaurant owners decided to retire. Genuine Ice Cream is planning to reopen nearby in Bozeman this spring.

Walton is proposing a six-story apartment building, with 121 residential units and 2,000 square feet of commercial space on the ground-level. Parking is planned to be included beneath the building and partially on the ground floor.

The Community Development Board discussed the project during a meeting this week. Though the proposed site plan is going through the staff approval process, a deviation request from the alley setback standards will go before the city commission in early May.

City Planner Sarah Rosenberg said during the board meeting that the developers are proposing a portion of the building abut the property line on the alley side directly, with no setback.

Board members said they generally support the proposal and the deviation request, though several said they would encourage the developer to continue making more of the ground floor space facing Main Street commercial space.

“There’s a belief that at least, certainly along Main Street, that it would be nice if there were more public space and less private space along the first floor,” Board Chair Henry Happel said. “I think overall this is a good project and in an important location.”

Walton said after the meeting that the units will be a mix of studios, one-bedrooms and two-bedrooms.

Walton said they are planning to have a lot of amenities for residents, like a gym, co-working space and a hot tub. The project is planned to be for higher-end rental units, but Walton said they have not determined price points yet.

Reuter Walton is also working on two other proposed housing projects in the city — a student housing development at the corner of South 19th Avenue and Kagy Boulevard and a below-market rate housing project in the middle of the city.

“What we’ve found is there is a need for the market-rate housing on Fifth, there’s a need for the student housing and there’s a need for workforce housing,” Walton said.

Walton said if they get city approval, they plan to break ground on the 5th and Main apartments this summer, and get the other two projects underway this year as well.