1825 W. Kagy: 162 Affordable Apartments Proposed

Summary: A five-story building with 162 affordable apartments is proposed for 1825 W. Kagy, the former Bozeman Church of Christ site at 19th and Kagy. The City of Bozeman’s October 23, 2026 project report found the site plan (Application No. 26289) in substantial compliance with city code. 

What’s proposed for the 1825 W. Kagy development?

The application proposes a five-story apartment building with 162 units, all of them affordable housing. On the architect’s plans, the building is referred to as Woodward Flats. 

The proposed unit mix is:

• 59 one-bedroom units
• 59 two-bedroom units
• 44 three-bedroom units

As planned, the building would wrap the west and south sides of the 3.36-acre site, facing S. 19th Avenue and W. Kagy Boulevard. At a proposed height of 52 feet, it would come in under the 60-foot limit for the R-D zone. The 153 parking spaces would sit behind the building, off both street fronts.

The plans include:

• A community room and fitness center
• A plaza and shared green space on the north side of the building
• Private outdoor space at ground-floor unit entrances

The existing church building would be demolished. Kaas Wilson Architects designed the proposed building.

How affordable would the 1825 W. Kagy apartments be?

Every one of the 162 units is proposed at 60% of Area Median Income (AMI). That would qualify the project for the city’s Type-C affordable housing incentives, which lower the parking and bike parking requirements. To use those incentives, the units would have to stay affordable for at least 50 years. The developer still needs to submit a compliant affordable housing plan covering that period before a building permit can be issued.

Under the parking rules that apply to applications deemed complete after October 1, 2026, deed-restricted affordable housing isn’t required to provide any parking. The proposed 153 spaces would go well beyond that minimum, and the plans also include 97 bike parking spaces.

If it moves forward, it would join Hidden Creek, which broke ground in May 2026 with 182 apartments, on the list of sizable affordable projects in Bozeman this year.

How has the 1825 W. Kagy plan changed since 2023?

The October site plan proposes 162 units, two more than the May 2026 application. Here’s how the filings compare:

• 2023 application: a 450,000-square-foot student housing building with a 324-space parking garage
• May 2026 application: about 182,000 square feet and 160 units, switched to affordable housing, with a surface lot in place of the garage
• October 2026 site plan: 162 units in a five-story building with 153 surface parking spaces

Traffic, access and the Kagy Boulevard reconstruction

According to the project’s traffic impact study, the development would generate about:

• 770 trips on an average weekday
• 58 trips in the morning peak hour
• 74 trips in the evening peak hour

The plans call for a right-in, right-out access on S. 19th Avenue near the north property line, with full access onto Kagy through the Hawk’s Ridge private drive to the east. The sidewalk along S. 19th would be widened into a 10-foot shared-use path.

If the project moves forward, construction would overlap with the Kagy Boulevard rebuild. The Montana Department of Transportation expects that reconstruction to start in spring 2027, and the developer would pay a share of its cost.

What does the developer still need before final approval?

The city’s report lists five conditions the developer must meet before final site plan approval. The developer would have to:

• Combine the two lots on the site (that request is in review with the city)
• Record an access easement through the Hawk’s Ridge drive, plus utility easements
• Pay cash in lieu of parkland
• Pay a $124,953 cash-in-lieu-of-water-rights fee
• Pay its share of the Kagy Boulevard reconstruction cost

The affordable housing compliance document would also have to be recorded before a building permit is issued.

Who is behind the 1825 W. Kagy project?

Reuter Walton, the developer behind the 2023 student housing plan, is still tied to the project. The property owner is 1825 W Kagy LLC, based in Minnesota and connected to Reuter Walton CEO Nick Walton. The Bozeman Daily Chronicle reported in 2023 that Reuter Walton was behind the original student housing proposal at this corner. The applicant is TD&H Engineering in Bozeman.

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