The Columbia Falls City-County Planning Board last week recommended approval of an amended plan for the city square off Nucleus Avenue owned by developer Mick Ruis.

The amendment would allow for construction of first floor residential spaces in a zoning district that currently permits only commercial spaces at ground level.

The request comes after Ruis Holdings overhauled the original development plan for its 1.5-acre downtown property containing the former First Citizens Bank and other buildings.

The original plan, approved by the city in April, would have demolished all three existing structures on the site, replacing them with two new three-story buildings that would have flanked Nucleus Avenue to the east and Fifth Street West to the north and left a section for parking spaces in the southwest corner of the lot. The buildings were slated to be mixed-use commercial and residential, with the north building containing a public gym and pool.

The company’s new plan, drawn up by Whitefish-based architectural firm Montana Creative Architecture and Design, would ultimately scale back construction. The new plan eliminates the three-story south building entirely, instead using and remodeling at least one, and possibly two, of the existing structures. The construction of the three-story north building, after removal of the old drive-thru teller structure, would continue as planned but with some modifications.

The new design reverts most of the north building’s commercial spaces into residential housing. The pool and gym would be removed and replaced by 18 studio or one-bedroom units on the ground floor. Two commercial spaces would remain at ground level on the east front facing Nucleus.

Montana Creative’s principal architect Aaron Wallace stated the main reason for the reconfiguration was concern over minimal financial returns with the original plan. Wallace cited a growing trend in residential demand outpacing commercial demand in cities across the country. Replacing commercial space in the north building with residential would reflect the national trend and reduce financial concerns for the company and any future owners of the condominium-style spaces, Wallace told the board.

The new small residential spaces would most likely be overnight or vacation rentals and comply with the zoning. In fact, said Wallace, downtown is the perfect place for the increased activity generated by high visitor turnover in the apartments.

But board member Robert Smith expressed concerns that, while Columbia Falls does have a shortage of residential space, adding more nightly rentals would not fulfill the need for actual housing in the community.

The company outlined two options to address parking for the new design. The first option would explore building underground parking beneath the north building where there is already tunnel infrastructure from the old bank drive-thru. The second option would be to remove the existing southwest building, for more parking. Both options keep and remodel the old bank, which currently houses Hellroaring Crossfit. The company asked for approval of both options to give the developers discretion.

The new plan would retain much of the green space in front of the old bank.

No public comments were made on the changes. The board approved the revised plan 4-1, with Smith voting against it.

The City Council will hold a subsequent public hearing of the amendment request at 7 p.m. Tuesday, Sept. 8 at Columbia Falls City Hall, 130 Sixth St. W. The public is encouraged to submit written comment prior to, or during, the meeting.