It was a close vote, but the Whitefish City Council chose to negotiate a developer agreement with Housing Whitefish to complete the Depot Park Townhomes project. The council will consider the agreement at a future meeting. 

The deadline to complete the project is May 2027. According to the staff report, "unforeseen barriers,” including turnover, limited staffing and a recent legal judgement against them, have made it unlikely the Housing Authority will be able to meet this deadline. 

The council voted 3-2 in favor of drafting a new agreement with Housing Whitefish to complete the townhomes. Councilors Rebecca Norton and Giuseppe Caltabiano voted in opposition. Mayor John Muhlfeld and Councilor Frank Sweeney were absent.  

Housing Whitefish provided a proposal that calls for a phased approach to construction and a partnership with the Northwest Montana Community Land Trust. 

“Where we would come in is at the end when you’re actually ready to sell the houses,” said Kim Morisaki, executive director of the Northwest Montana Community Land Trust. “How much we brought per house, to the project, would really depend on the AMI of the people buying the house.” 

Caltabiano suggested sending the project out for an RFP, or request for proposals. He said neither the Housing Authority, Housing Whitefish nor the city are developers, and he would like to go through the public bidding process. 

Councilor Andy Feury said he agreed, somewhat, with Caltabiano. 

“We’ve gone from a $6.6 million cost now to a $12.3 million cost in five years,” Feury said. “I think it is a valid question at this point ... to look at more density on that site to make it more affordable.” 

Whitefish City Manager Dana Smith said infrastructure has been completed, so the density cannot be changed. 

Councilor Steve Qunell said while a reset sounds helpful, all the work done to this point would be lost. 

“We’ve spent $2 million getting to final plat,” he said. “[If] we go back out and change all that, that money’s just gone. 

“I can’t think of a single developer that’s going to come in and build something there and be able to sell it affordably,” he added. “Our best chance at getting any sort of affordability in that spot in downtown ... Daniel [Sidder of Housing Whitefish] is our best bet at this point.” 

Councilor Ben Davis said it would be “insanely difficult” to change the project at this point. 

“A lot of the really difficult and technical parts of this project are already completed,” Davis said. “It is designed, it’s engineered, it’s budgeted, it’s entitled. There are pipes and roads. 

“I think Housing Whitefish should, easily, be able to finish this project,” he said. 

Norton expressed concern about legal issues, including a $1.5 million judgement lien on the property because of a jury verdict against the Housing Authority. 

Five years ago, the city donated the property known as the Snow Lot to the Whitefish Housing Authority so it could build the Depot Park Townhomes, an affordable housing development. 

One year later, the city committed an additional $2,000,000 to the project. The preliminary plat was approved, and construction commenced. Last year, the Housing Authority adjusted the range of area median incomes the housing would serve, citing high building costs and rising interest rates. 

So far, $1,985,179 of the city’s $2,968,500 total cash contribution has been spent.

    A sign posted at the site of the Depot Park Townhouses on Columbia Avenue and Railway Street. (Julie Engler/Whitefish Pilot)