Whitefish City Council May 21 reluctantly approved a development that looks to add 60 condominium units to the city. Council voiced concerned that the units would be used for vacation rentals.

Council approved a request by Schumacher Interests Inc. for a planned-unit development overlay to develop a property on U.S. Highway south of the Mountain Mall pond.

Councilor Andy Feury noted that while opponents of the project are on target saying the units could become vacation rentals and not assist to creating affordable housing in the city, Council had little choice but to approve the project.

“I’m ambivalent about this,” he said. “I want to vote against this project, but it came to us when our rules were different. I find us on shaky ground if we try to deny.”

The vote to approve passed 5-1 with Councilor Richard Hildner voting in opposition. Hildner previously made a motion to deny, but that failed after several Councilors also expressed concerns that they had no other choice but to approve it.

Council in February approved an update to its short-term rental regulations. One of those changes was to remove short-term rentals as an allowed use in the WB-2 zoning district, which is the zoning of the project. However, the project was submitted to the city prior to the changes in the regulations.

During public comment, Rhonda Fitzgerald said allowing residential development in the WB-2 zone is only for creating affordable housing.

“This [development] seems contrary to everything the city is working toward,” she said. “Things are badly out of balance and this will continue that.”

The developer was required to do a PUD to place a residential development on the property and as a community benefit will provide funds of $30,000 toward a future signal at Highway 93 and Akers Lane. A hotel could be developed on the property as a use-by-right.

“At least there is the opportunity for some people to make a home there [with the condos],” Councilor Melissa Hartman pointed out versus a hotel.

The condos would be constructed in 10 buildings with a range of five to 10 units per building. The density of the project is 7.8 units per acre. Access will be via private driveways off Akers Lane.