The Montana Board of Investments has executed a buy/sell agreement for a 114-acre property west of Laurel as the proposed location of a new behavioral health facility.

In a letter to the Laurel City Council, BOI Executive Director Dan Villa wrote that with the agreement in place, the Board will begin the “formal process of requesting annexation and assignment of zoning” from the city.

The property is located west of the city along Old U.S. 10 between 8th Avenue and Golf Course Road.

The state Department of Health and Humans announced over Thanksgiving that it had selected the city as the location for the new health center, despite not having an exact location figured out.

During the 2025 legislative session, a long-range planning bill set aside $26.5 million for the 32-bed forensic mental health facility, though recent estimates indicate it will cost significantly more than that.

In a November 26 letter, DPHHS indicates that it is prepared to utilize additional funding from the Behavioral Health Systems for Future Generations state special revenue around, which currently holds around $42 million, to cover costs that exceed the Legislature’s appropriation.

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