Block B | A 7-Story Development Near the Bozeman Public Library

Summary: A seven-story mixed-use development known as the Block B Project has received preliminary approval from the City of Bozeman. The proposal would redevelop multiple parcels in downtown Bozeman, replacing existing residential buildings, including a 20-unit apartment complex, with new housing, commercial space, and structured parking. 

Where is Block B located?

The proposed Block B development is located at 511-541 E. Babcock, just across Babcock Street from Vienne and Little Star Diner in downtown Bozeman. The project would redevelop five parcels within the city’s B-3 (Traditional Core) zoning district.

What Does the Block B Project Include?

According to documents submitted to the City of Bozeman, the application proposes the demolition of several existing buildings, including three residential dwellings and a 20-unit apartment complex that is currently vacant. 

In their place, the developer proposes constructing a seven-story mixed-use building totaling approximately 174,216 square feet.

Proposed Building Components

• 46 residential units located on floors two through seven

  • Unit mix includes two-, three-, and four-bedroom residences

  • It is not yet specified whether the units will be rentals or for-sale homes

• Ground-level:

  • Commercial space

  • Residential lobby and amenities

  • Building access and parking

• Underground parking garage with approximately 80 parking spaces

   

What Happens to the Existing Apartments?

One of the most discussed aspects of the project is the removal of the existing 20-unit apartment complex.

• Many of the apartments were studio units

• They were most recently listed for under $1,000 per month

• The property sold in July 2023 and is now vacant

The demolition of these units raised concerns during public comment about the loss of affordable housing in the downtown core.

Why Is the Building Allowed to Be Seven Stories Tall?

The property is zoned B-3, which typically allows buildings up to 70 feet in height. By using incentives available through the city’s Affordable Housing Ordinance, developments in this zoning district may reach heights of up to 100 feet. 

The proposed Block B building would stand at approximately 90 feet, which falls within the maximum height allowed under these incentive provisions.

How Does the Affordable Housing Ordinance Apply?

Instead of including affordable units within the building itself, the developer is proposing to use the Land Donation Alternative (Bozeman Municipal Code Sec. 38.380.050).

Under this option:

• The developer donates one or more parcels of land within city limits

• The donated land must be used for future affordable housing development

• In exchange, the project receives additional height allowances

   

City documents note that ownership of the donated land must be transferred and other ordinance provisions must be met before final approval.

Who Owns the Property?

The property owner is listed as S2K Miller Babcock LLC, the same developer behind the Canopy Hotel development in the same area of downtown Bozeman.

Current Status of the Block B Project

As of January 7, 2025, the Block B project has received preliminary approval from the City of Bozeman. Additional requirements, including the formal transfer of donated land, must be completed before the project can move forward to final approval and permitting.

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