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After rejecting higher rates, Kalispell Council to consider adjusted impact fee reports

JACK UNDERHILL | Hagadone News Network | UPDATED 5 months, 3 weeks AGO
by JACK UNDERHILL
KALISPELL GOVERNMENT, HOUSING AND TRANSPORTATION REPORTER Jack Underhill covers Kalispell city government, housing and transportation for the Daily Inter Lake. His reporting focuses on how local policy decisions affect residents and the rapidly growing Flathead Valley. Underhill has reported on housing challenges, infrastructure issues and regional service providers across Montana. His work also includes accountability reporting on complex community issues and public institutions. Originally from Massachusetts, Underhill graduated from the University of Massachusetts, Amherst with a degree in Journalism before joining the Inter Lake. In his free time, Underhill enjoys mountain biking around the valley, skiing up on Big Mountain or exploring Glacier National Park. IMPACT: Jack’s work helps residents understand how growth, housing and infrastructure decisions affect the future of their community. | October 6, 2025 12:00 AM

Kalispell City Council will consider adopting police and fire impact fee reports adjusted to the rates imposed over the summer.   

Council meets Oct. 6 at 7 p.m. in City Hall, 201 First Ave. E.  

Council in July decided to keep impact fees significantly lower than the recommended amount outlined in a 2025 report. They remain the same as when they were last adjusted in 2015. 

Though the 2025 recommendations were rejected, Montana law still requires the city to approve a report when an impact fee is imposed, according to a city memo.  

Impact fees are one-time charges on new developments to cover the cost of new infrastructure, like buildings and equipment. The fees shift some of the cost onto the new customers, so the burden isn’t only on existing ones. 

Councilors have long butted heads over whether to keep fees low. Those opposing raising them say the lower rates attract developers and in turn, benefit the housing market. 

The proposed adjusted fees accounted for the growth and upcoming capital improvements to the Kalispell Fire and Police departments. 

The report determined the maximum allowable charge for police impact fees to be $183 per residential unit, but Council kept the rate at $39.  The maximum allowable charge per multifamily unit was $147, but Council adopted $31. The maximum allowable charge per 1,000 square feet of commercial space was $529, but Council adopted $15.  

The maximum allowable charge for fire impact fees per residential unit was $745 and Council adopted $460. The maximum allowable charge per multifamily unit was $596, but Council adopted $368. The maximum allowable charge per 1,000 square feet of commercial space was $1,113, but Council adopted $333. 

Council dropped a 5% administrative charge on the fees in August to comply with Senate Bill 133, which passed during the last legislative session.  

COUNCIL WILL also consider a zoning text amendment allowing residential eaves to extend up to two feet into setback areas in residential zones.  

A setback area is defined as the horizontal distance required between a structure and a lot line. The city has traditionally required a five-foot setback area, but the amendment would shorten that gap.  

The Kalispell Planning Commission held a public hearing on the proposal in September before moving the recommendation to Council. 

Oregon-based developer Hayden Homes submitted a petition for the amendment.  

“By allowing for more efficient use of land, the city can foster more housing diversity, affordability and thoughtful growth,” read the petition.  

Hayden Homes is planning to build 47 new homes in the Aspen Creek community south of Three Mile Drive off Camp Crook Avenue. The neighborhood will see detached single-family homes and attached townhomes priced for middle-income earners, according to a press release.  

COUNCIL WILL appoint one of two applicants to the Tourism Business Improvement District board.  

Home2 Suites General Manager Emily Schroeder applied for the vacant position along with Nathan Black, marketing manager at the Hilton Garden Inn. 

Council is expected to re-enter into an agreement between the city and the Flathead Valley Hockey Association, which has been operating a seasonal ice rink at Woodland Park since October 2007, according to a city memo.  

Council will also confirm nine firefighter/medics for the Kalispell Fire Department. Each member has completed their one-year probationary period, according to a memo from Fire Chief Jay Hagen.  

Reporter Jack Underhill can be reached at 758-4407 and [email protected].

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