Bozeman officials raise concerns about sale of federal building
BOZEMAN, Mont. — Plans to sell Bozeman’s federal building and downtown U.S. Post Office are drawing new reaction from city and county officials concerned about what the move could mean for local postal services.
The U.S. General Services Administration has announced plans to sell the federal building and U.S. Post Office in Bozeman.
GSA Administrator Edward Forst said the building’s disposal would reduce costs for taxpayers and benefit the community, as the agency looks to “offload properties that don’t align with the government’s real estate needs.”
Earlier this week, the Gallatin County Commission sent a letter to Forst outlining concerns about Bozeman residents potentially losing the downtown post office.
The commission encouraged the GSA to consider a transfer of ownership to the city so the U.S. Postal Service could continue lease renewal.
On Friday, city officials released plans to potentially take ownership of the building at no cost through the Historic Surplus Property Program.
The following was sent out by U.S. General Services Administration:
Today, the U.S. General Services Administration announced plans to sell the Federal Building and U.S. Post Office located at 10 E. Babcock St.
The divestment advances the Administration’s broader effort to reinforce the federal real estate portfolio, remove long-term liabilities, and focus resources on properties that best support federal agency missions.
“GSA is taking decisive action to offload properties that don’t align with the government’s real estate needs,” said GSA Administrator Edward C. Forst. “Disposing of the Bozeman Federal Building will reduce costs for American taxpayers by opening the property to new investment while benefiting the community.”
“Today’s announcement from the General Services Administration is a great step forward for the downtown Bozeman community,” said U.S. Senator Steve Daines. “Thank you to Administrator Ed Forst for your dedication and commitment to Montana priorities and I look forward to seeing the impact of this new Bozeman property on our great state.”
Located in the heart of central Bozeman, the historic property offers a significant opportunity for redevelopment that could improve the local economy. No future owner or use for the property has been determined.
GSA has reduced costs and strengthened the federal real estate portfolio by disposing of over 127 properties since January 2025, generating $614 million in proceeds, avoiding $1.15 billion in delinquent maintenance and operating expenses, and eliminating $867 million in costs through lease negotiations and reductions. Recent transactions include the Liberty Loan Building and the GSA Regional Office Building in Washington, D.C., as well as properties in Maine, Minnesota, Texas, California and Tennessee.
Additionally, GSA has listed other buildings for accelerated disposition to ensure taxpayers do not pay for underutilized federal office space. GSA projects that moving these buildings out of the federal real estate portfolio will eliminate $5 billion in delinquent maintenance and annual operating costs.