Whitefish City Council shot down a proposal Oct. 5 to construct a building on Whitefish Lake containing six condominium units.

Siding with neighbors, who said the project is too dense and poses a risk to the lake, council unanimously denied a conditional use permit request on the project.

“Given the plans presented and the numerous concerns — from having guests staying above the garage to potential lakeshore impacts,” Councilor Jen Frandsen said. “I can’t comfortably approve the application as presented.”

Lakeshore Group LLC is requesting a conditional use permit to construct a building along the lake at 1340 Wisconsin Avenue on what is currently undeveloped property. An accessory building is proposed along the north of the property with six enclosed garage parking spaces and an area on the second floor defined as “bonus space.” The project is set on .8 acres and includes a total of 14 parking spaces.

The property is zoned WR-3 which is for one-family or multi-family housing. According to city planning staff, the zoning would allow for up to four units, but because the developer is proposing more, a CUP is required.

Aaron Wallace, with Montana Creative which represents the developer, said the number of units proposed is minimal for what could be constructed on the property.

“If you take a look at the zoning in Monk’s Bay there is only two other additional properties that allow for any sort of mixed use,” he said. “All the rest is single family home zoning, so there isn’t much opportunity to do much of this type of development.”

Neighbors of the project claimed it contained too many units and could have an impact the lake.

Donna Emerson said she’d rather have only four units on the property, which is allowed without a CUP.

Koel Abell pointed to two nearby lots that now contain single family homes, but could be developed one day.

“My concern is this is setting a precedent,” he said. “This could lead to giving another CUP to a very similar size lot and not maintain the WR-3 zoning.”

He pointed to the developers assertion that the project is appropriate for the site because the Wildwood condominium development to the south is more dense with 16 units.

“We have regulations that fix mistakes of the past,” he said. “We shouldn’t be allowing people to apply for more than a four-plex here.”

Marcia Scheffels asked the city to protect the lake noting that Monk’s Bay is shallow and density has already increased there.

“We have to look to the future,” she said. “We have a high density bay right now and we don’t have much water left in that bay right now.”

Councilor Richard Hildner said he was originally in favor of the proposal, but after hearing the neighbors concerns he had concerns.

“I came in here thinking I was ready to approve this,” he said. “I’ve since been confronted with a whole new set of issues.”

Hildner said he heard sound arguments for why the property should be developed only with four units.

Councilor Andy Feury said he couldn’t see how it would be possible to service six boats on the dock off the property.

“The impacts on the critical areas such as the lake can’t be mitigated,” Feury said. “That area is pretty impacted already. We would be doing the lake and our community a big disservice [to approve this].”

Developers originally requested to develop the property with nine condominiums in four buildings, but revised the plan after going before the city planning board in August.

Wallace told council last week that the developer again wanted to change the plan so that the three “bonus spaces” planned for above the garages could be constructed with full baths and kitchenettes.

“The bonus spaces will be entitled to one of the other units,” he said. “They will not be rented out separately.”

The city planning board previously recommended limiting those spaces to only containing a half-bath to discourage people from using the space as a bedroom.

Fire Chief Joe Page said he would be against allowing plumbing to the bonus spaces because not having a bathroom is the best way to prevent occupancy of the space.

“An official bedroom has to have the proper doors and windows,” he said.

The bonus spaces quickly became a sticking point for council.

Frandsen said those bonus spaces would quickly turn into guest houses or rental units, which she pointed out are not permitted under the city’s zoning code when part of a multi-unit development.

“If we approve this as is, the owners could have people staying up in that area. That puts the city at-risk,” she said.