BILLINGS — The troubled and historic Colonial Apartments in downtown Billings are expected to be demolished by the end of December as the city and the former owner's estate work toward finalizing a deal.
Riverstone Health plans to purchase the property for $500,000 and transform the site into a community resource facility.
Learn more about what happens to the handful of tenants still present at the property:
The Colonial Apartments have been plagued by repeated crime that have drained emergency resources for years, initiating a litigation with the city of Billings in 2023. The property has multiple code violations, including peeling paint and broken windows.
"It is in absolute disrepair," said Terri Todd, the chair for the Continuum of Care. "It is not fit for human habitation."
Despite the building's condition, a handful of people are still living inside and will need to find new housing before demolition begins. That's where the Continuum of Care comes into place. It's a coalition of 16 Billings nonprofits and organizations, aiming to find secure housing for those in need.
"So, we've just been trying to make sure that we have community resources for anybody who is going to be displaced," Todd said.
Todd, who has already helped dozens of Colonial tenants move out, emphasized that each current resident will be taken care of before demolition begins at the end of the year.
"It's not a case of the community just turning a blind eye," she said. "It's a case of, we have a property that's a nuisance property, that is not habitable."
A status hearing was held this week, as Michelle Ostrye, the attorney for the Colonial's trustees, is working to finalize the deal by the end of the year. She said that the Yellowstone County District Court has ordered eviction notices for each of the tenants, which are being delivered by the sheriff's office.
"Yeah, it's been difficult," Ostrye said. "Some people don't want to move out. You know, they want to stay. And of course, some people don't have any place to go."
The Colonial was owned for a long time by John Skauge, who died this year. At the time of his death, he was fighting a lawsuit filed by the city of Billings that sought to force him to improve the building or risk fines. His children inherited the property and the lawsuit.
On top of the $500,000 purchase price, RiverStone Health must also pay for asbestos abatement and demolition fees. Jon Forte, the CEO and Health Officer for Riverstone Health, said he envisions a new community resource facility after the building is demolished.
"I think our ultimate goal with the property is to create and transform a community issue into a community solution," he said.
Once all tenants are evicted and the building is demolished, Forte said he plans on rebuilding a new facility on the RiverStone Health campus that would provide food assistance and food education.
"The South Side is a food desert," he said. "And so creating some affordable grocery options and some nutritious options for folks could go a long way in improving resiliency and just the community here for our neighbors."
Forte said that RiverStone Health is teaming up with the Continuum of Care to ensure that each of the current residents find a safe place to live before progressing forward.
"We're going to support everybody there, whether they were tenants originally, or whether they're squatting currently," he said.
The final chapter on the infamous building will soon close in court, eventually paving the way for a brighter future for the downtown Billings historic apartments.
"We're taking the time, and we're going to do it right," Ostrye said.
This story was reported on-air by a journalist, and portions of this article have been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
See MTN's previous reporting:
City of Billings in court to demolish Colonial apartments
Colonial Apartments face closure and new vision from RiverStone Health
Death of Colonial Apartments owner may delay trial in Billings
Billings 'crime-ridden' Colonial Apartments case to go before jury in January
City demands owner fix dilapidated Colonial Apartments or demolish them
Owner of Colonial Apartments charged with two felonies for pushing woman downstairs
Billings city officials announce agreement in legal case against owner of Colonial Apartments
