A plan to redevelop the Caird Engineering property into a low-income senior housing complex with a potential mix of commercial development comes to a crucial moment Monday night, after spending years on the market alongside Helena's busiest intersection.

Rocky Mountain Development Council officials will for the second time ask city commissioners to sponsor a $2.07 million application for federal housing-stabilization money. If the commission again rejects their request, the idea will not move forward.

"If we don't get that money, the project's not doable," RMDC Director Gene Leuwer told Independent Record editorial board members last week.

Just last month, three of the five commissioners said they likely wouldn't vote for the request - comments that came after RMDC received promising results from the most extensive environmental survey of the century-old industrial site to date. And two of those commissioners said late last week they're still leaning toward denial.

RMDC officials say they believe they've addressed each of the concerns raised by opponents. They also cite the significant need for more low-income senior housing in Helena.

The organization is hopeful the latest wrinkle in its 10-month campaign will tip the scales in a debate that's drawn a mix of sharp criticism and support from neighbors and other city residents.

Cliff Erb, who owns Better Body Fitness of Montana Inc. with his wife, Mona, is seriously considering joining the project to build a new retail showroom and corporate headquarters for his company as part of a mixed-use development along Montana Avenue, which also would include several spots for other retailers and second-story apartments.

Commissioners will meet at 6 p.m. Monday in the third-floor chambers of the City-County Building. The request is the last item on the agenda.

If the commission grants the request, there's still no guarantee the project will ever see fruition - about $28 million in requests have been filed statewide for the $19.6 million in Neighborhood Stabilization Program funding given to Montana - but it would be a first step in a long process.

If the plan is approved, RMDC would have to pursue other opportunities to finance the $6.96 million first phase - which would include 30 units of low-income senior housing - and eventually approach the city once more to request a change to allow the commercially zoned site to include housing.

The organization's plan for the 2.4-acre site has changed a few times since it was first publicly announced in January. RMDC initially wanted to build 58 units of low-income, multifamily housing on the property, but with a per-unit cost of about $425,000, unknown environmental cleanup costs and a lack of support from the neighborhood, the state Board of Housing denied a funding request last spring.

RMDC came back this summer with a retooled proposal, including the 30 units of senior housing in two buildings. The development cost was cut significantly due to the agency's choice of senior residences, which require only one parking space for every three units - a significant factor when officials planned to use underground parking to allow for more landscaped open space at the complex.

The cost dropped to $231,000 per unit for the first phase, but City Commissioners Alan Peura, Paul Cartwright and Robin Shropshire voted to turn down RMDC's first application request this summer, citing the still-unknown environmental costs and their belief that the site was best suited for commercial development.

Echoing concerns of residents in the surrounding neighborhood, the trio said the property, located next to the busy intersection of Montana, Helena and Lyndale avenues and a long walk's distance from essential services such as grocery stores, was a poor choice for housing of any sort.

Two things have happened since: RMDC received positive results from an environmental assessment, which showed the minimal contamination at the site could be cleaned up for less than $130,000; and Erb came forward with his commercial proposal.

There's no deal in place yet, but Erb is hopeful his partnership with RMDC could result in a mixed-use development that addresses the concerns raised by opponents. He would significantly renovate the large gray building on Montana Avenue that's still occupied by Caird's workers, removing a portion of the building to provide a buffer from the roadway.

He would tear down other buildings on the property and build new structures to house a half-dozen other retail spaces, with one- and two-bedroom apartments available at market prices on the second floor. He said the complex would be designed with architectural elements mimicking the look of Helena's railroad district and would serve as a gateway into the Sixth Ward.

"It's not just going to be a strip mall stuck in there," he said, noting the development would include an open, park-like space he's dubbed "Foundry Corner," along with historic pieces left over from Caird's days as a much larger operation.

Erb said he's been looking to expand and centralize his operations for some time - and he's always had an eye on the site.

"Really, we've always viewed the Caird property as something we would always be interested in if the right opportunity arose," he said.

The business, he stressed, would not be another fitness club - his operation sells and maintains exercise machines to individuals and clubs.

Asked whether the environmental results and the first solid commercial proposal for the site in years have swayed their opinions, Commissioners Peura and Cartwright said they're not convinced, though they both noted they would listen carefully to the proposal Monday.

"Honestly, the irony of this interest by Better Body Fitness bears out exactly what I've been saying all along now," Peura said. "Now that we have a clear (cost for environmental cleanup) there will be much more, and probably quite a bit of interest in developing this commercial property.

"To me this proves that we should be more patient … and give some commercial and private interests time to consider the options," he added.

"Let's not jump into a proposal that is OK and not as good as I think we can do," Peura said. "While I know a lot of Helenans say this property has been empty for a long time, this is a big deal … we just learned some pretty important data."

Cartwright agreed that the low cleanup cost - long a significant, unknown factor any developer would consider before buying the property - could spark more interest.

"The concern that nothing would be developed there could be based on the unknowns," he said. "I think the property's much more valuable than it used to be, and Rocky gets credit for that."

Peura and Cartwright noted they realize there's a need for more senior housing in the community, and more low-income housing for other age groups, but they don't think this is the right place. They both said they've had some preliminary conversations with officials at the University of Montana-Helena, and there's potential interest in the school eventually expanding to the site.

Shropshire couldn't be reached for comment.

Mayor Jim Smith, who has consistently voted in support of the project, was flabbergasted when he heard his colleagues' position.

"The door's open - it's right in front of them," he said. "Opportunity's knocking, and we don't get another opportunity.

"I see this thing as a win-win," Smith added. "A: We get the place cleaned up and sold with full knowledge of what the environmental condition is. B: We can end up starting to meet our housing needs in this community, and C: We can have the commercial development along Montana Avenue. I'm hoping people are supportive of the project."

Commissioner Matt Elsaesser also has voted in favor of RMDC's proposal and said he sees no problem with sponsoring a grant application for a project that has more hoops to jump through.

During a recent tour of the Caird site, with workers handling structural steel among the rusting remains of Helena's industrial history, co-owner Tom Plovanich - dressed in grimy overalls as he handles as much of the work as his employees - said he's unsure of the company's future. The operation could move to another location or simply close up shop.

After years on the market, he's relieved to see some serious interest in his property.

"It'd be nice to get this cleaned up," he said. "Everything's got to change - you hope it's for the better."

Reporter Larry Kline: larry.kline@helenair.com or 447-4075

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