The Whitefish City Council last week rejected plans for a townhome project around the historic Ray E. Taylor building, known as the castle, on 10th Street. 

The decision on the Taylor Hill project came after a public hearing that lasted nearly 2.5 hours. 

The proposed project included 24 townhomes in seven buildings on almost 3 acres.  

The applicant said the townhomes were designed specifically for the elderly and for people with environmental and chemical sensitivities and illnesses. 

“I do think it’s a beautiful development ... and as an occupational therapist, I have treated chemically sensitive people,” Councilor Rebecca Norton said after making the motion to deny. “However, I don’t believe it meets the criteria in our growth policy that mandates preservation of neighborhood character.” 

Councilor Steve Qunell agreed that the development is not in keeping with the character of the neighborhood due to the “huge building heights.” He added that the project does not provide high quality streetscapes, just a private street with no sidewalks. 

The applicant requested six zoning deviations, including reduced setbacks and a narrow road segment. In exchange for the Legacy Home incentives of an increased building height to 40 feet and a decreased amount of open space, the applicant would pay $907,000 cash in lieu of affordable housing. 

Architect David Koel with Cushing Terrell said early drafts of the project included 30 units and the team backed off, settling on 24. 

The proposed project also included a novel approach to stormwater. The developer would pay for a portion of a regional stormwater facility at West Seventh Street and Baker Avenue to treat stormwater before being released into the Whitefish River. 

A traffic impact study showed 198 vehicle trips would be generated by the project, which would account for just 0.3% of the volume of traffic at Baker Avenue and 13th Street. 

Councilor Ben Davis had questions about nearly every aspect of the project, from the easement and emergency egress to safety railings and building height. 

Applicant Sheri Ross said she has owned the castle property for 20 years. She said the materials used in construction of the townhomes would have no- to low-toxins and that their increased cost makes building affordable housing challenging. 

“My main focus for this project is to create a community for people who have environmental and chemical illnesses and sensitivities,” Ross said. “We also want to create a community where people can age at home.” 

Ross said the units would not be appealing as second homes because, in part, microwave ovens and certain cleaning chemicals are not permitted.  

The Community Development Board did not send a recommendation to the council because of a tie vote on the matter. At that meeting, seven members of the public expressed concerns including protecting neighborhood character, traffic, safety for pedestrians and wildlife, nearby trees and the height of the buildings.  

Whitefish Senior Planner Wendy Compton-Ring said the city received 19 letters about the project, 14 in opposition and five in favor. During public comment, 11 Whitefish residents spoke, only one of whom was in favor of the development. 

“A four-plex that’s 40 feet tall, four stories tall, doesn’t seem like it’s in character with the neighborhood that I've lived in for 26 years,” Lyndsay Schott said, and cautioned the council to be aware of the language used by the developer. “Age in place buildings are not four stories tall. That does not exist.” 

Whitefish resident Ian Griffiths expressed concern for the safety of children, pets and wildlife given more traffic on O’Brien Avenue. He said the buildings will “tower” above Baker Avenue, a sentiment shared by several people, and said he thought the applicant was “jive talking.” 

“I’m not sure these four story, ecological, environmentally friendly luxury units for the elderly is the true purpose for these,” he said.  

The vote was 4-1 to deny, with Councilor Giuseppe Caltabiano the dissenting vote. 

THE COUNCIL voted unanimously to approve updated Legacy Homes Program numbers regarding purchase prices, rental prices and fees in lieu. Updates to the program happen annually. 

The fee in lieu is based on a three-year average of sales in Whitefish, which was about $1.2 million for the average house. The three-year average does not include homes valued at $5 million or more. 

The fee in lieu amount increased from $294,349 in 2023 to $375,443 in 2024. In 2025, it increased to $378,089, a 0.7% increase from last year. 

“The intention of all this work that went into this affordable housing program is for the developers to build the housing in the project,” Davis said, adding that fees in lieu are for exceptional circumstances. “I understand that some projects might be ‘nicer,’ or whatever, but that doesn’t, in my opinion, change that fact.” 

Whitefish Public Works Director Craig Workman said the Federal Railroad Authority awarded the city a Railroad Crossing Elimination grant. 

“Some of the specific projects we’ll be looking at will be an additional grade separated crossing east of the existing viaduct, as well as crossing improvements to State Park Road and Birch Point Drive,” Workman said. 

The budget is $500,000 to be funded by the $400,000 grant, a $75,000 contribution from BNSF Railway and $25,000 from the city. 

The grant requires the creation of a Railroad Crossing Elimination Task Force, and Qunell was appointed to join.