Whitefish is sticking with plans to remove a former bank building in Depot Park after city offices vacate the space next year.

City Council on Oct. 3 voted 4-1 to reject a proposal from the Whitefish Chamber of Commerce to lease the building in the downtown park. Instead the city will continue with long-held plans to demolish the building that currently houses the city parks and planning departments.

Council’s decision came down to following through with plans of increasing green space in Depot Park and the potential financial impacts of keeping the building.

Councilor Richard Hildner said making sure Depot Park provides open space in downtown is too important to forgo.

“The park is a beautiful face in Whitefish,” he said. “If we leave that building, it’s like a pimple in the middle of the nose.”

Councilor Jen Frandsen said revenue from renting the building wouldn’t offset maintenance costs of the building. She also worried about where the city might find funds later to remove the building once the tax increment finance district sunsets.

“There’s an overwhelming need to accomplish the park master plan upon our exit from that building,” Frandsen said. “If the TIF funds set aside for this aren’t used for the park then I can’t imagine how we will come up with those funds.”

In July council reaffirmed plans to remove the building as outlined in the Depot Park master plan. However, council also decided to entertain proposals from groups interested in leasing the space.

The Whitefish Chamber returned last week with a proposal for a 10-year lease on the building at an annual rate of $34,000. The chamber planned to locate its offices there, along with operating a visitor information center and providing office space for unnamed nonprofits.

“We believe this is one of the best locations we can have to promote our city for tourism and for businesses,” chamber Executive Director Kevin Gartland said.

Councilor Katie Williams lobbied for keeping the building. She said a balance could be struck between having green space and using the building as a visitor center.

“It’s a sound decision to keep the building and it does have use in the long-term,” she said. “This building would be valuable to the chamber to interact with tourists.”

THE DEPOT Park master plan, approved in 2012, calls for removing of the building as part of a goal to create more green space. The planning and parks departments are set to move into the new City Hall once it’s constructed in 2017.

However, some city officials have said the Depot Park building could be a source of revenue for the city, and at some point the city may need the space again.

After the meeting, Mayor John Muhlfeld said he disagrees with council’s decision.

“Any master plan adopted by this governing body is a general guide,” he said. “We see deviations from the adopted downtown master plan, but look at the benefits that planning document has reaped for the city.

“Not only would the lease revenue benefit the city coffers in the short-term, but the option to relocate the parks department to this building in the future would, at a minimum, give the city and future City Councils an alternative to building a third story on City Hall, a significant savings to our taxpayers.”

He added that the building is one of a few assets the city owns that can generate revenue.

“From a strictly fiscal standpoint, I think the decision was a bit short-sighted and irresponsible. But we carry on as a city, and I will honor and respect the council’s decision,” he said.

Public comment on the future of the building was split.

Marcus Duffey, general manager at Great Northern Brewery Co., asked council to let the master plan evolve based on current needs.

“The economic priorities have changed — you have a building and a willing tenant,” he said. “People come in all day, every day to see us and find information they can’t find on their smartphone.”

Chris Schustrom, with the Heart of Whitefish merchants association, asked the city to honor the park’s master plan.

“To not remove the building would set back implementation of both those plans,” he said. “I ask you to stay the course.”