BILLINGS- After years of crime, decay and legal battles, the notorious Colonial Apartments on Billings South Side may soon see new life or be shuttered for good.
The daughter of the late owner, John Skauge, has informed the city she plans to vacate and board up all South Side properties tied to her father’s estate by the end of September.
Watch reaction to the future of the Colonial:
Meanwhile, RiverStone Health is in early talks to purchase the building, with plans to potentially transform it into a space focused on community well-being.
Still, with ongoing litigation, the road ahead remains uncertain.
The problems at the Colonial are impossible to ignore. The building is riddled with broken windows, graffiti and peeling paint.

“It's scary in there,” says Terry Todd. “It’s just not made for human habitation anymore.”
Todd, who serves as the chair of Continuum of Care Billings, is also part of a coalition of community partners working behind the scenes to help tenants relocate.
“It doesn’t have to be that way anymore,” she said.
Todd says back in June, local agencies stepped in quietly to assist residents of the Colonial in finding new housing.
“There were 14 agencies who came down on their own time, own dime. We didn’t seek to publicize it. We just wanted to be about client care,” she said.
The ownership of the building shifted earlier this year after Skauge’s death.
See previous Q2 coverage:
His daughter, Martha Livingston, sent the Billings City Council an email outlining her intent to close the building. When contacted for comment, Livingston declined through her attorney.
Todd called the situation “complicated.”
“You have a family grieving because they just lost their father, you have clients who are confused because they don’t know where to go,” she said. ‘But you also have a spot that has historically been crime-ridden, and something has to be done.”
That "something" could be RiverStone Health.
The public health agency reveals it signed a letter of intent to purchase the property, though the deal is still in early stages.
“We’ve had our eyes on this property for a number of years,” said Eric Owen of RiverStone Health. “We are hopeful that we can envision this as a space that builds resiliency and safety and additional resources for the South Side of Billings.”

RiverStone Health says it’s too early to say whether the building will be torn down or renovated.
Meanwhile, litigation between the city and the former owners continues in Yellowstone County District Court.
City Attorney Gina Dahl said in an email the city is “hopeful a resolution will be agreed upon without the need for trial,” but acknowledged that “complications will need to be addressed.”

In the meantime, nonprofit groups are continuing to help relocate tenants, though Todd says, it's not clear how many people remain in the building, legally or otherwise.
“We have to be able to communicate with the people who are living here legally, as well as the people who may be squatting,” Todd said.
She emphasized this moment could be a turning point for the neighborhood.
“It should be one of those things in our community where we begin to fix these problems 20 years before they become this,” she said.
Related:
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