Nearly $1 million in tax-increment revenue has been requested for two business projects in Whitefish.

One of the requests is from Sean and Brian Averill, who have shifted their plans for a downtown Whitefish boutique hotel from the corner of Third Street and Central Avenue to Block 46. They want $513,633 in tax-increment funds for infrastructure on the site at the southeast corner of Spokane Avenue and Second Street.

The other proposal is from the Carrington Co., owner of the Mountain Mall. Mall Manager Tom Kraus, on behalf of Carrington, has asked for $400,000 to renovate the mall facade.

Both proposals will be considered at tonight’s Whitefish City Council meeting. 

The Averills, owner-operators of The Lodge at Whitefish Lake, are doing business as NDI Inc. for the boutique hotel development. A year ago Orlan Sorenson of Landmark Builders asked the city for the same level of tax-increment revenue for infrastructure investment on the same site.

The city was prepared to assist with the infrastructure, but by July 2013 Sorenson and his investors pulled the plug on the project, citing difficulty in securing financing for the proposed $11.9 million facility.

The Averills apparently have a contract to purchase the Block 46 property, according to Whitefish City Manager Chuck Stearns. They met with city officials recently to discuss the relocation of the sewer main line that runs under the property, street improvements and the potential tax-increment assistance for infrastructure.

In his council report, Stearns calculated the 80-room hotel would generate $128,408 in tax-increment revenue annually as long as the state assessed the property at values of $10 million for the hotel and $2 million for furnishings and equipment. By the time the tax-increment finance district sunsets in 2020, the hotel would have generated $513,633 — the amount requested — in tax-increment revenue.

The Mountain Mall proposal to use $400,000 to make improvements to the mall exterior is an appropriate request for tax-increment funds, Stearns said.

Kraus has been working with the city for several months and has stated that if tax-increment revenues plus increased resort tax collections do not equal the $400,000 by 2020, the mall owner would pay the city for the balance.

Stearns pointed out that Kraus’ request is less than 9 percent of one year’s worth of tax-increment revenue; $4.6 million is budgeted for the upcoming fiscal year.

The exterior renovations would complement the design of the recent renovation and expansion completed by Sportsman & Ski Haus, which owns its portion of the mall building.

In other business, the council will hold a public hearing to consider a resolution establishing fees for temporary food vendor permits and establishing a fee of $490 for an appeal of an Architectural Review Committee decision.

The council will interview candidates for various city committees from 5 to 7 p.m.; then begin the meeting at 7:10 p.m. at Whitefish City Hall.

Features editor Lynnette Hintze may be reached at 758-4421 or by email at lhintze@dailyinterlake.com.