Jul. 7—Whitefish on Monday will consider an agreement to transfer an affordable housing project planned by the Whitefish Housing Authority to a nonprofit.
Though the undertaking has seen several changes throughout the planning processes, the housing authority has been working toward developing the Depot Park Townhomes project at the corner of Railway Street and Columbia Avenue. The city previously donated the land for the project and just under $3 million in funding.
While the housing authority has until May 2027 to complete the project, representatives of the organization recently contacted the city with notice that it would be unable to do so.
Council will consider the changes at its meeting beginning at 7:10 p.m. at City Hall, 418 E Second St.
City Manager Dana Smith says in a memo to Council that the housing authority is facing barriers making it nearly impossible to meet the deadline. Those include turnover and limited staff, along with a jury verdict in Flathead County District Court earlier this year that awarded $1.5 million to the authority’s former executive director.
The proposal would transfer the project to Housing Whitefish, an independent nonprofit that works to address housing needs in the city. In addition, the proposal includes bringing the Northwest Montana Community Land Trust into the project to hold the land in the community trust to ensure affordability and manage the development through sales and homebuyer education.
In addition, the project that includes 22 townhouse units would be constructed in phases.
Smith said while the city appreciates its partnership with the housing authority and work already completed, “it is imperative this project is completed in a timely manner for our community.” She recommends Council approval directing her to negotiate a developer agreement to complete the project.
The housing authority provides housing options for low-income residents in Whitefish through Section 8 and public housing programs.
ALSO ON the agenda, Council will consider a text amendment to the city’s formula retail business standards with changes that include creating specific development standards for such businesses, broadening the definition of formula businesses, and adding the requirement for an economic impact study for formula retail or hotel businesses over 10,000 square feet.
Council will consider creating a timeline for the Community Development Board to update the city’s growth policy named Vision Whitefish 2045. The board needs to meet certain deadlines in order for Council to approve the update and ensure the city is in compliance with the Montana Land Use Planning Act established by the state Legislature in 2023.
If the deadline is not met, the city would be at risk for litigation by developers and funding awarded to the city to complete the project at about $390,000 could be retracted, Smith notes.
At 5:15 p.m. during a work session, Whitefish Lake Institute representatives will present information regarding its aquatic invasive species management program for which the city provides a financial contribution.
Then council will discuss its goals for fiscal year 2026.
Deputy Editor Heidi Desch may be reached at 758-4421 or hdesch@dailyinterlake.com.