The Montana State Land Board on Monday approved a long-term lease for the Victory Commons  commercial development on state land south of Costco.

The lease for 28 acres is expected to bring in $2.7 million in state revenue over the next 25 years from The Kroenke Group, Spring Prairie Development Four.

Kroenke, based in Columbia, Mo., has been involved with the final two phases of the Spring Prairie development along U.S. 93 in north Kalispell.  

The previous three phases — which included Lowe’s, Costco and Cabela’s — also involved state land parcels in the 25- to 30-acre range. Phase three, anchored by Cabela’s, is under construction and likely to be completed this year.

John Tubbs, executive director of the Department of Natural Resources and Conservation, said phase four is expected to involve development of a hotel, restaurants and more retail shopping.

But Kalispell City Planner Tom Jentz said Victory Commons likely will be anchored by a large retailer and the other ventures will be ancillary. Jentz said he can’t speculate on what particular businesses will be involved with Victory Commons.

He expects that over the next 12 months, The Kroenke Group will pursue subdivision and platting of the land, along with designing infrastructure for development.

“They don’t even have the lots created yet,” he said.

Jentz said lease negotiations have been underway for over a year.

Victory Commons will encompass the former Department of Natural Resources and Conservation property in an L-shaped parcel that mostly includes land along the west side of U.S. 93.

Victory Commons adjoins the Kidsports youth athletic complex.