The Montana Board of Investments completed a $6.32 million purchase of 114 acres west of Laurel on Friday, clearing the way for construction of a new forensic mental health facility — a project that has drawn sustained resistance from local residents, the Laurel school board, and community groups since it was first proposed.
The Purchase and the Plan
The Board of Investments acquired the land from Miller Trois LLC, a Billings-based corporation that previously held the John Ostlund Building now operated by county government. The state’s Department of Public Health and Human Services intends to build a 32-bed secure forensic mental health facility on the site, with plans that could eventually expand capacity to 82 beds.
A construction contract for the project has already received Board of Investments approval, signaling the state intends to move forward without further delay despite unresolved community objections.
Community Opposition
The Laurel site has faced significant pushback since it was identified, including formal opposition expressed at two separate public hearings. The Laurel school board voted to oppose the facility earlier this year, citing the proximity of the proposed construction site — the nearest school sits approximately half a mile away, according to the state’s own environmental assessment.
The state conducted an environmental assessment in response to community concerns and acknowledged that opposition comments were heard and reviewed. However, the assessment concluded that the feedback did not alter the state’s determination that Laurel represents the best available location for the facility.
The assessment stated that “this expansion directly addresses a documented and worsening public health emergency,” framing the project as a response to a statewide shortage of forensic psychiatric beds rather than a discretionary siting decision.
The Case for the Facility
State health officials have pointed to a waiting list of 96 individuals currently held in county jails across Montana without access to adequate psychiatric care. That population — people who have been ordered by courts to receive psychiatric evaluation or treatment but cannot access a bed — sits at the center of the state’s argument for urgency.
The Department of Public Health and Human Services has emphasized that the Laurel facility will be secure, addressing concerns about public safety that featured prominently in community opposition. A forensic mental health facility differs from a standard psychiatric unit in that it primarily serves individuals involved in the criminal justice system, typically those found incompetent to stand trial or not guilty by reason of insanity.
Montana’s existing forensic mental health capacity has long been considered inadequate relative to demand. The growing jail waitlist has been cited in legal and policy discussions as evidence that the current system fails both the individuals awaiting care and the local jail systems that must house them.
What Comes Next
With land acquisition complete and a construction contract already approved, the state is positioned to begin site work. The timeline for groundbreaking and completion has not been publicly detailed, but the Board of Investments’ actions suggest the project is moving into an active construction phase.
Community opposition is unlikely to disappear, and local officials may continue to press the state through public comment or other channels. The school board’s earlier objection, like the broader community pushback, did not shift the state’s site evaluation, and the environmental assessment’s conclusions give state agencies a documented basis for proceeding.
Whether the facility ultimately expands to the planned 82-bed capacity will likely depend on legislative appropriations and ongoing demand — the current 96-person jail waitlist suggests the pressure for additional beds is not going away.
The Laurel purchase is among the more visible state infrastructure decisions in recent months, arriving alongside other scrutiny of state government spending and management. A recent audit of the Montana Lottery found significant financial miscalculations and internal control failures, adding to broader questions about oversight of state agencies and boards as Montana heads into an election year.
