Resort Tax moves toward acquiring land to improve 191/64 intersection

For sale at $10 million, roughly 4.5 acres are necessary for any engineering; purchase is ‘the right thing to do for the community’ 

By Jack Reaney ASSOCIATE EDITOR 

This article was corrected to state that BSRAD’s board meeting occurred on Feb. 14, not Feb. 13.

The Big Sky Resort Area District is engaged in a fast-developing quest to improve traffic flow at the intersection of U.S. Highway 191 and Montana Highway 64 (Lone Mountain Trail). BSRAD may be faced with a now-or-never opportunity to purchase the land needed for any meaningful improvement, but it’s most likely coming with a $10 million price tag.  

In January, officials from Montana Department of Transportation and BSRAD shared visions of a solution to decongest traffic. Discussion included a potential roundabout to replace the traffic light, but officials continue to emphasize that a roundabout is just one possibility. Regardless of the final solution, one thing is relatively certain: without access to more land northwest of the intersection, no meaningful planning can occur.   

“In order to actually make an intersection enhancement or expansion, because of geographical limitations… simply put, there will be nothing that will happen at the intersection if land is not acquired,” Daniel Bierschwale, BSRAD executive director, told the BSRAD board during a regular meeting on Feb. 14.   

After more than 45 minutes of discussion, the BSRAD board voted unanimously to move toward making a formal offer to purchase the land—two parcels totaling approximately 4.5 acres.

Board members Kevin Germain and Steve Johnson were not present to vote, although Johnson wrote a letter in support and Germain has previously voiced his support for improvements at 191/64. The board’s decision was not taken lightly—BSRAD may need to immediately budget for an additional $10 million expense, one of its larger capital expenditures in recent history.  

Financial feasibility 

BSRAD recently paid to conduct an appraisal of the two parcels, resulting in a value of $9.5 million. However, the landowner remains adamant that the selling price is $10 million, according to Bierschwale and board chair Sarah Blechta, who are among a group of local stakeholders—also including Big Sky Resort GM Troy Nedved and Big Sky Chamber of Commerce CEO Brad Niva—engaged with the landowner. 

Bierschwale expressed confidence that the landowner will be willing to agree to creative terms to minimize impacts on BSRAD’s current grant allocation process for fiscal year 2025.  

“I think there is plenty of opportunity for us to finance this and not have an impact—at least a major impact—on our current grant cycle,” Bierschwale said.  

BSRAD is aiming for a buy-sell agreement in which both parties commit soon—allowing Montana Department of Transportation to continue exploring designs and possible funding mechanisms—but the closing date is postponed “several months” to allow BSRAD’s current funding cycle to play out, Bierschwale said.  

A near-term agreement has another financial benefit: if serious plans begin to move forward, BSRAD and MDT will aim to reallocate $750,000 from remaining TIGER grant work—in summer 2024, construction is expected to take place at the same location.  

The board discussed how BSRAD could finance the purchase. Different long-term financing options are possible, but a buy-sell agreement will be needed to determine specific debt structure.  

“We’ve got $3.5 million in capital reserves, currently. I don’t think that we want to touch that full amount,” Bierschwale said. If absolutely necessary, BSRAD could purchase the land outright in cash—BSRAD has about $24 million in liquid assets—but Bierschwale and Blechta recommend another solution.  

Bierschwale warned that this is a great example of what will happen as BSRAD begins to execute projects recommended in Big Sky’s $777 million capital improvement plan across the next decade. As BSRAD takes on debt service, Big Sky’s nonprofit partners will need to diversify their revenue streams so BSRAD can preserve more capital for community benefit projects.  

“I don’t think anyone is super stoked to be bringing on additional land acquisition on this team. Just being honest with you… Is this the right thing to do for the community? We’re going to probably take some heat for going out there and spending $10 million,” Bierschwale told the board.  

He answered his own rhetorical question: “It’s the right thing to do for the community.”  

With affirmations from the board, Blechta asked for continued feedback from the community.  

“Know that we are not taking this lightly. This has been a heavy lift for the team, it’s been a heavy lift for the board. We all take personal responsibility for these things, and want to do right by the community,” Blechta said.  

The board voted unanimously to pursue a buy-sell agreement in the very near future, and board member Ciara Wolfe commented that she hopes the board will inform the community about this project’s financial impact on Resort Tax grants.   

“As all of our applicants are looking at applications and putting in, just be thoughtful and know that we are going into potentially one of the flattest or least years of growth that we’ve had, and we’ve just improved making our largest investment,” Wolfe said.  

Earlier in the meeting, it was pointed out that this fiscal year (since July), year-to-date resort tax collections are up 4%, but November and December collections were below last year. January is expected to follow the same trend for collections.  

You got to pump it up 

Improving traffic flow is a primary goal for this land acquisition, especially because MDT’s 191 corridor study from 2020 showed that the 191/64 intersection is one of the most congested areas between Four Corners and Big Sky. However, this land acquisition could dovetail with water and sewer infrastructure needs.  

The Gallatin Canyon County Water and Sewer District is working to annex properties in Gallatin Canyon into a sewer collection system that would pump wastewater up the Big Sky’s new wastewater treatment facility. If successful, the project could take a potential 156 septic systems offline—septic systems can be risky for river and watershed health.  

In order to pump the wastewater up the hill from Gallatin Canyon, GCCWSD will need to construct a lift-station within a quarter-mile vicinity of the 191/64 intersection, according to project manager Mace Mangold.  

“We have one to three options in siting the lift station,” Mangold told EBS in a phone call. “And having that area as kind of a locked-down option eliminates some uncertainty. We are coordinating easements on a couple properties… If BSRAD owns that [additional] property, we know we have a reliable fail-safe.” 

Mangold said if BSRAD can secure the property and immediately begins planning for intersection upgrades, it’s possible that construction could align between the two projects. GCCWSD is targeting summer 2026 for construction.  

“The two driving factors on this, really, primarily are the intersection expansion as well as the pump station,” Bierschwale told the board.  

“I see the importance of both projects,” Mangold said. “Both long-term community needs.”