BILLINGS - The future of the crime-ridden Colonial Apartments on the Billings South Side may soon be determined.
After failed mediation attempts, the dispute between the City of Billings and the property owner is tentatively set for a jury trial in January.
The case, filed in 2023, will continue in Yellowstone County District Court.
While the City of Billings declined to comment on the Colonial Apartments due to the ongoing case, court documents show the city is pushing to either repair or demolish the historic building.
In response, the building's owner, John Skauge, and his legal team argue that the property provides crucial low-income housing for Billings residents.
A Hotspot for Crime
For many in Billings, the Colonial Apartments have become synonymous with crime.
Anika Lollar, a DoorDash driver who frequently travels through the area, described witnessing a crime scene in broad daylight.
“There were about 10 to 15 cops that pulled up,” she said. “They took somebody into custody, did a little bit of investigating, and then drove away.”
Lollar’s frustration with the building at 223 S. 27th St. is not unique.
She once lived nearby and recalled a terrifying experience when a bullet struck her home.
“I am just wondering when enough is enough,” she said.
New numbers released from the Billings Police Department back up her concerns.
In 2023, there were 235 reported incidents at the Colonial. In 2024, there have been 152 calls so far.
These numbers, though lower than previous years, remain high.
In 2021, there were 457 calls, the highest in recent years. Other yearly totals include 332 calls in 2019, and 373 calls in 2020.
And crime remains persistent as police have responded to the Colonial about 20 times in the last six weeks, including a November incident where a man was found stabbed on the main floor.
Police believe the crime occurred elsewhere, and the man was uncooperative with investigators.
The City’s Aggressive Action
Years ago, the City of Billings revamped its approach to code enforcement to tackle blight and deteriorating properties across the city.
The Colonial Apartments have been at the center of this effort, culminating in litigation against Skauge for multiple code violations.
City officials accuse Skauge of maintaining a dangerous structure.
In court documents, violations range from minor issues such as peeling paint, broken windows, and diseased trees to major concerns, including roof and foundation damage.
Court documents also allege that some basement rental units even have windows nailed shut, posing a safety hazard in emergencies.
The lawsuit aims to address these violations, and the ongoing crime associated with the property.
However, Skauge contends he has made improvements, including installing a new fire escape and evicting problematic tenants.
He insists the Colonial offers essential housing for low-income residents and argues that if the building is demolished, he should be compensated at fair market value.
MTN News has repeatedly reached out to Skauge for comment without success. His attorney, Geoff Cunningham, provided a statement:
“The Colonial is a historic building directly linked to Billings’ success,” Cunningham said. “We look forward to continuing to work with the City of Billings to keep its doors open and provide housing to an unrepresented community.”
Billings Mayor Bill Cole addressed the efforts to remedy the issues at the Colonial to a concerned resident who emailed city leaders back in November.
At that time, Cole disclosed in that email correspondence concerns the building might contain significant quantities of asbestos and noted a firm had been hired to investigate that issue, saying resolution on that may delay trial.
Balancing Housing and Safety
The future of the Colonial Apartments is controversial as Billings grapples with a low-income housing crisis.
Former city councilor Frank Ewalt emphasizes the need for caution, warning that demolishing the building without a plan for its tenants could worsen the situation.
“You need a place to live. Those people need to go someplace,” Ewalt said.
While acknowledging frustrations over crime, Ewalt believes the Colonial offers a better option than homelessness, and he calls on the city to consider what, if any, other options are available for those living in the apartments.
“That’s a warmer place than being outside,” he said. “Even though it’s not what I’d like to live in, or you’d like to live in, or the mayor wants to live in, it’s better than living on the street.”
A Historic Building at Risk
Cunningham says the Colonial Apartments, once a symbol of Billings’ prosperity, housed workers who built the city's railroads and refineries.
But today city leaders say it represents a difficult challenge between balancing the need for safe, affordable housing with addressing persistent crime.
As the trial is scheduled for January, the city faces a tough decision, but for now, the fate of the Colonial Apartments remains uncertain.
