Missoula, MT – The city and county of Missoula have agreed to equally share the costs for the operations and maintenance of the John Engen Local Government Building for the current fiscal year, with both entities setting aside substantial budgets to support the building’s ongoing needs and future redevelopment.
On Tuesday, the governing board of the Missoula Local Government Building Special District approved a $293,000 budget for operations and maintenance, as well as a $246,000 budget for capital improvements at the downtown facility. The decision marks a significant step in ensuring the continued use and preservation of the historic building, which was transferred to Missoula by the federal government in 2023 as part of the Good Neighbor Program.
Chris Lounsbury, Chief Administrative Officer (CAO) of Missoula County, explained that while the county had included the operational costs in its fiscal year 2025 budget, the formal adoption of the special district’s budget had been pending. “We needed to do that so it’s an adopted piece of our budget as we close out the calendar year, which is why we’re doing this in May,” Lounsbury said.
The federal government’s donation of the building was a landmark moment for the city and county, who are committed to preserving the historic structure in perpetuity. Initial plans to open the building as a one-stop shop for government services by 2026 had estimated renovation costs at around $40 million. However, these ambitious plans have been delayed due to funding challenges.
John Adams, special projects manager for the city, confirmed that the capital improvements, initially slated to begin this year, will now start in the next fiscal year. “The starting point has been a little elusive as we’re looking for external funding,” Adams stated, acknowledging the difficulty in securing the necessary resources for abatement of asbestos and lead-based paint.
While major renovations will not begin until next year, the $246,000 capital improvement budget will cover essential architectural and engineering work carried out by A&E Design and Jackson Contracting Group. The two firms are working closely with the city and county to plan the building’s future abatement and redevelopment efforts.
The $293,000 operations and maintenance budget includes necessary costs for heat, lights, water, insurance, and elevator maintenance. A significant portion of these expenses, about $149,000, will be offset by an annual lease agreement with the U.S. Postal Service, which occupies part of the building.
Despite the delay in large-scale capital improvements, the city and county have already secured some funding for the project. A $350,000 state grant has been awarded for the renovation of the building’s historic lobby, with additional grant applications in progress. One potential source of funding, the Brownfields grant, could be available in fiscal year 2026.
The John Engen Local Government Building, originally constructed in 1913 and listed on the National Register of Historic Places in 1979, served as the headquarters for the U.S. Forest Service for more than a century. The facility underwent an expansion in the 1930s, and its preservation is seen as essential not only for maintaining the building’s historical significance but also for modernizing it to meet current public service needs.
When completed, the building will serve as a central hub for city and county services, consolidating multiple offices into one location and potentially reducing the need to lease additional downtown properties. The consolidation effort could also result in the sale of other city and county properties, helping to fund the extensive renovation work required to transform the building into a functional public space.
As plans continue to evolve, both the city and county are committed to preserving the building’s legacy while adapting it to meet the needs of modern government services and the public. With funding strategies moving forward, the John Engen Local Government Building remains at the heart of Missoula’s vision for a more efficient and accessible government.
