Construction is on hold at the Rocky Mountain Building at 601 Central Ave. downtown.

Alluvion Health purchase the building several years ago and is planning to renovate it into a full-service clinic.

Alluvion’s initial budget was set around $22 million, but has since been revised to more than $40 million to account for inflationary impacts, Maia LaSalle, Alluvion’s communications director, told The Electric this week.

“With the expanded budget, we are experiencing a brief funding gap, which is not uncommon for a project of this scale,” LaSalle said. “As we all know, businesses go through various cycles, and it is essential to adapt to those changes and be nimble. Alluvion Health is no different. Right now, we are in a position where we need to strategically assess our financial commitments and prioritize our spending.”

Business Bites: Bakery moving downtown; Crooked Tree second location; Buckle planned for Marketplace; Alluvion construction progressing; Les Schwab open

The funding gap suspended the Rocky Mountain Building project  until financing is “aligned and secured,” and the timeline for that depends on many factors, LaSalle said.

A significant piece of the funding package for the 601 Central Avenue is new market tax credits and the allocation for the next round of those tax credits won’t be released until later this fall, LaSalle said.

“Unfortunately, that means our project work at 601 Central will not likely resume until early in 2024,” LaSalle said.

LaSalle said the pause won’t impact Alluvion’s existing services.

Alluvion completes purchase of former Roosevelt school

She said that Alluvion has also had challenges with Medicaid claim processing over the last few months.

As a community health center, Alluvion is designed to serve the Medicaid population, she said, and the issues cause a financial disadvantage.

Over the last few weeks, LaSalle said those issues have become more challenging and Medicaid has indicated it could take 90 days or more to resolve those issues.

Alluvion hosting construction update meetings Nov. 9

In February, the city planning office said it has received a permit application from Alluvion for the third phase of the Rocky Mountain project, which was estimated at $25 million, according to the application, and included the interior renovation.

The first phase was asbestos abatement, the second was exterior and structural work.

Business Bites: Apartments proposed for Dick’s RV Park; Crooked Tree opening second location; Mise en Place open; Great Falls Clinic optical center closing; Gibson, Milwaukee Station, Alluvion construction underway; Malmstrom contract; Prewett Creek RV Park winterized [2022]

In January, Alluvion Health closed on the purchase of the former Roosevelt School from Great Falls Public Schools for $899,000.

In November 2022, Alluvion held public meetings to provide construction updates on the Rocky Mountain Building.

Alluvion receives grant for childcare program [2022]

For those updates, Alluvion said they planned to complete the Rocky Mountain Building in August 2024, when it would reopen as a full-service clinic offering medical, dental, and behavioral health services, as well as pharmaceutical and lab services under one roof in downtown Great Falls.