Housing trust purchases 99 acres for $39.75 million, one of the largest community land trust projects in the country
By Jen Clancey STAFF WRITER
A big deal closed in the first week of 2026 in Big Sky.
On Jan. 7, the Big Sky Community Housing Trust announced they had finally acquired the land for one of the country’s largest community land trust projects to date for $39.75 million. The Cold Smoke project consists of 99 acres reserved for 389 permanently deed-restricted homes and was valued at an average of $46.4 million after three third party appraisals were commissioned by Lone Mountain Land Company, BSCHT, and the Big Sky Resort Area District. LMLC sold the land at a 14% reduction.
Board members and the audience at the first BSRAD board meeting of the year applauded David O’Connor, executive director of BSCHT, when he announced the acquisition on Jan. 7.
“Closing happens today, recording will happen this afternoon and I’m here to report: mission accomplished,” O’Connor said. When completed, the Cold Smoke development will construct 264 apartments and 125 single-family for-purchase houses for year-round local workers. Neighborhood infrastructure for the apartments will begin as soon as weather allows this year, he said, and the land for single family homes needs about 18-24 months of work on infrastructure before construction.
Already, towns around the country with similar housing struggles have reached out to BSCHT to learn how to organize a project like Cold Smoke. O’Connor credits a united community and group of organizations in Big Sky who paved the way for 10 years to make the project possible.
“The answer to how we pulled that off is this community,” O’Connor said. “This event celebrates Big Sky, the community of Big Sky, this is something that we all did together.”
Sarah Blechta, board chair of BSRAD, explained that in her 35 years living in Big Sky, this is the most proud she’s ever been in the community, and described how this accomplishment will change the lives of thousands of people.
“There are people who have left here because they couldn’t be here,” Blechta said, noting residents who’ve had to move because the cost of living was too high. “… This is work that helps mental health. This is work that helps our community. This makes us stronger and better and I couldn’t be more proud.”
Several steps had to take place to enable Big Sky to plan and fund such a large project. In the Montana legislature, a bill broadening the use of the 1% additional resort tax allowed communities to use those collections for workforce housing. BSRAD also needed to get approval from voters in May 2025 to take on long-term debt of up to $60 million to fund the project, which was a success. More than a year of negotiations with Lone Mountain Land Company resulted in a discounted plot of land for the project, which O’Connor said couldn’t have been done without LMLC investing in the vision for this property.
In a Jan. 7 BSCHT press release, Matt Kidd, LMLC president, described their involvement in the project.
“Cold Smoke exists because we believed early on that this land could and should serve the long-term needs of the community,” Kidd stated. “That belief required patience, partnership and a meaningful commitment over many years. We’re proud to have helped create the opportunity for a project that supports the people who live and work in Big Sky and strengthens the community for generations to come.”
Finally, in November 2025, the Gallatin County Commission approved the preliminary plats for the Cold Smoke development, followed by bond sales in late December, and BSCHT closing the the land purchase agreement in the first week of January. A timeline of the project is available on BSCHT’s website, and shows groundbreaking for infrastructure planned for the spring of 2026, vertical groundbreaking in the fourth quarter of 2026, and initial occupancy for apartments and single family homes opening in summer 2028 and 2029, respectively.
Inspired by Blechta’s remarks of the long-term impact of Cold Smoke in Big Sky, O’Connor concluded his announcement in the BSRAD board meeting.
“In three or four decades from now, there will be people sitting around this table, sitting in this audience, standing at this podium, that would not be here otherwise.”
