Commission approves demolition of historic building
SEAN BATURA
Enterprise Staff Writer
Livingston city commissioners voted unanimously Tuesday to approve a developer’s request to demolish the Industrial Towel & Cover Supply building (IT&C) at 218 S 2nd St.
The new building proposed to replace the old is to include apartments, a restaurant, and a courtyard for outdoor dining at the restaurant, and parking spaces. The development team has not yet finalized a conceptual design, according to Eric Horn, who is on the team. Feedback from the Livingston Historical Preservation Commission and public comments are being taken into account in the design, he told commissioners on Tuesday.
“Our vision for the project is a dynamic mixed-use development featuring affordable housing, workforce housing, age-restricted units, and market rate residences,” Horn told commissioners. “The feasibility of each component hinges on manageable construction costs, efficient development processes, favorable interest rates and current tariff considerations.
“To that end, we intend to prioritize American-made building materials — hopefully all from Montana — and innovative construction techniques that optimize on site labor efficiency,” said Horn. “This infill development aims to maximize the site’s potential by blending affordable and market rate housing with associated parking and a small neighborhood restaurant. We believe this project will enhance the 2nd Street corridor, serving as an inviting gateway to Sacajawea Park while providing much needed housing in the downtown district.”
The Livingston Historical Preservation Commission had asked the developer to try to preserve a brick facade on the property.

“I’m going to say that we’re going to try to save that facade, but if design doesn’t work for it, there’s no use in saving it,” Horn told commissioners. “And I’m sorry to say that, but it’s just the brutal reality of being a developer. We have to look at all these costs and everything. All these little things add up, especially in today’s market. It costs the same amount to build this project in Bozeman as it does in Livingston, and Bozeman has higher rents.”
“I’m trying to make this thing affordable. I’m trying to put a workforce housing component into it,” continued Horn. “I’m trying to put an age-restricted component into it. These are all things that probably have never been done, but that’s always been my vision since I first talked to Grant [Gager, city manager] about this project about a year ago.”
The city commission moved unanimously to issue the demolition permit with the condition that the east facade on the property be preserved in place unless deemed infeasible by a structural engineer.
Former city commissioner and downtown hotel owner Patricia Grabow expressed support for the project during Tuesday’s commission meeting. She spoke passionately about ensuring a vibrant downtown area.
She has spent 18 years as president of the Livingston Downtown Building Owners and Business Association. She called the Industrial Towel & Cover Supply building “one of the ugliest buildings in town.”
“Livingston has these gorgeous buildings that we are trying to save — that isn’t one of them,” Grabow said. “It’s beauty that we’re after. What he’s trying to do, we’re so thrilled that we could end up with mixed-use housing in that part of town.”
She warned the city against “putting impossible” barriers on developers.
“These [are] wonderful people who have decided to invest in our community,” Grabow said.
“It’s his money, he’s investing, and then we tell him he’s got to have — ‘Oh, you got to save the ugliest facade in town,’ which is 1/9 of the block. ... I’m so grateful that they’re here. After 18 years of wanting them to come, here they are.”
Some other members of the public expressed opposition to aspects of the project. Multiple people objected to approving the demolition permit without knowing the specifics of what is proposed to replace it. The development team has indicated details are still being worked through.
Chris Carrieri, who owns property near the the historic building, indicated he wants to see an architectural rendering of the project.
“The architecture is everything, and I think it would be important to know what the project entails architecturally before being able to make a decision on the complete demolition of the property,” Carrieri said.
Commission Chair Quentin Schwarz said design documents for the project, when available, will be reviewed by the Livingston Historical Preservation Commission. Because the existing building is in the historic district, the demolition permit must be considered by the preservation commission.
The commission already considered the demolition permit, having voted unanimously Feb.
11 for a motion to support the permit with the condition that the developer preserve the existing brick facade/wall or come back to the HPC to justify demolition of the facade.
But that condition violates the city code in that the developer wasn’t provided “clarity regarding how the application would be acceptable if the wall is incapable of being preserved,” according to a staff report to the city commission. With Tuesday’s vote of the city commission to approve the demolition permit, the developer doesn’t have to go back to the preservation commission for approval.
Schwarz noted that the preservation commission doesn’t have the real-time guidance of the city manager and the city attorney like the city commission does.
“So, I fault no one on the board for that at all,” Schwarz said. “I think we all want the same thing.”
Melissa Nootz, vice chair of the city commission, thanked the volunteers on the historical preservation commission for their service.
“I personally don’t fault you for anything,” Nootz told the board members who were present Tuesday. “I think there’s nothing more honorable than public learning and sharing what we can, what we’re learning with each other. I think land use can be really tricky and hard, and you guys don’t deal with these decisions all the time.
We [city commissioners] don’t even deal with them all the time, which is why there’s an attorney to help us. So, I appreciate your vulnerability coming tonight.”
The development team is exploring ways to repurpose some materials such as 1) reclaimed bricks from the alley side for landscaping features and decorative walls within the new development 2) donating surplus bricks to the city for local community projects, and 3) possibly repurposing timber in a decorative fashion.
“To cover the additional costs for the development, we will apply for a grant from the URA [Livingston Urban Renewal Agency],” reads the developer’s Feb. 5 letter to the city planning office. “We will also be applying for an affordable housing grant from the URA as stipulated in their charter. In summary, this development will offer much-needed modern housing, address affordable housing needs in Park County, and support the city’s growth objectives, all while minimizing the burden of an outdated structure.”
The general contractor on the project is Build Group Inc., according to the demolition permit application. Build Group Inc. has offices in Livingston and in California and Seattle, according to its website.
Also associated with the project is Chris Salacinski, who was involved with the Yellowstone Granary Apartments project. Architectural and engineering work is being handled by 45 Architecture and DCI Engineers, respectively.
Schwarz said the developer on the project “went way above and beyond what they had to do at this juncture with the application.”
“I commend them for doing that even though they didn’t have to,” Schwarz said.