Whitefish City Council April 17 approved a conditional use permit for three-story mixed use building to be constructed on East Second Street.

Mark Panassidi proposes to construct the building on an empty lot adjacent to the Whitefish Community Center. The building is planned to include residential units and commercial space.

The building, being called Panassidi Flats, is expected to include ground floor commercial space and one residential unit. Six residential units would be located on the second and third floors.

Architect Ken Huff spoke to Council on behalf of the applicant.

“The developer under no circumstances wants a restaurant in there,” he said. “We are planning for some small retail — bookstore, ski shop, clothing store or maybe a coffee shop.”

During public comment, Rhonda Fitzgerald noted the lot has been vacant for a long time, but said she has concerns about the building including residential units on the first floor and how those units would be used.

“I’m happy to see investment in our downtown corridor,” she said. “Through our commercial core we’re trying to get retail not residential. I’m concerned about the term dwelling unit, because what we are seeing is a lot of short term rentals. What we really want to see is more downtown residential and there is demand for that.”

Access is proposed off O’Brien Avenue to the south of the building where eight parking spaces are proposed. Outdoor spaces include a concrete terrace on the ground floor and private balconies on the second and third floors.

The property is zoned general business district and is in the Old Town central district and the Old Town railway district.

Council approved the project with 14 conditions.