After years of speculation and previously abandoned projects, a new hotel is one step closer to opening in downtown Whitefish.

Whitefish City Council Monday unanimously approved a plan to construct an 86-room hotel at the corner of Spokane Avenue and Second Street.

“We have for years wanted a downtown hotel,” councilor Frank Sweeney said. “This is a good fit.”

Whitefish Hotel Group — which includes local developers Sean Averill, his brother Brian Averill, as well as an unnamed partner in Florida — requested a conditional use permit to construct the hotel. The permit is required because the proposed footprint of 15,000 square feet doubles the city’s 7,500 square-foot “big box” limit for downtown buildings.

“We think this is the only chance to have a hotel downtown,” Sean Averill said.

The $10 million three-story hotel is planned to have a facade of natural stone, tumbled brick and brick accents. The property is zoned WB-3, which allows hotels as a conditional use.

Concerns arose when the project was before the City Planning Board that developers planned to construct a chain hotel, specifically a Marriott on the site. Developers said Monday that they now plan to develop an independent hotel.

Still some residents questioned the overall mass of the project and several cited concerns with parking.

Leo Rosenthal, who lives one block from the project, said he is worried about the impact on the surrounding homes.

“This is the neighborhood where you take your kids trick-or-treating,” he said. “This is the neighborhood that is going to be degraded.”

Lauren Walker said Whitefish needs a hotel, but that corner would be better suited for an affordable housing project.

“This is one of the worst locations in town,” she said. “Why not do something excellent — not just something for cash.”

However, the project seemed to have the support of the business community.

Jeff Raper, representing the Whitefish Chamber of Commerce, said the chamber’s board of directors is in support of the project.

In a letter to council, Rhonda Fitzgerald praised the project and the decision to not operate as a franchise.

“Visitors to Whitefish are seeking an authentic place,” she said. “I believe an independent hotel is the right choice for downtown.”

One by one, Council Monday attempted to tackle some of the concerns raised by neighbors. Council placed a handful of additional conditions onto the conditional use permit.

Councilor Andy Feury said he is sympathetic to those who have concerns about the project’s impact on the neighborhood. He noted, however, that the new City Hall building is going to be larger than the hotel and it would be hypocritical for Council to say developers can’t put a large building downtown.

“Everybody says we need a hotel downtown and they say this size is economically viable,” he said. “We can say 80 rooms is huge, but I don’t see anything in the regulations that says how many rooms there should be. I do have something that says a building this size is an allowable use. We see all sides of the issue.”

Developers confirmed Monday that they now plan to operate as an independent hotel. Other changes from the original proposal include elimination of the pool, a decrease of three rooms and an increase of two parking spaces.

“This will not be a franchise,” Brian Averill told council.

Council codified that promise, including in the conditions of approval that the hotel could not operate as a franchise. Any retail shop or restaurant inside the hotel also can’t be a franchise, under city code.

“That’s one thing that makes this more palatable,” Sweeney said.

On site parking is set to be 74 spaces. The developers are also entering into a lease agreement for a dozen off-site spaces for employee parking and plan to shuttle employees to the hotel during peak seasons.

“Not one business in town has to have parking,” Sean Averill said.

About 37 employees are anticipated at the hotel, with 10-15 on duty at a time. Access to the hotel parking is proposed from alleys off Third Street and Kalispell Avenue. The alley access onto Spokane Avenue will be closed.

Council chose to create a condition that the hotel will maintain off-site employee parking and bus staff during summer months. Council also directed city staff to look into creating a residential parking zone in the neighborhood adjacent to the project.

Another concern voiced by neighbors was potential noise from a planned rooftop patio. Brian Averill said the rooftop space would be used as a sun deck for guests and would have limited hours of use.

Council created a condition that the rooftop patio not be used for a bar or as an entertainment space.

Developers Monday rolled out an early concept for the name of the hotel — The Empire Hotel. While the name is not definite, developers said they want a name that is reflective of the town’s railroad history and looked to the Empire Builder as inspiration for a name.