SANDPOINT — In one of Bonner County’s more controversial land-use cases, Panhandle Bike Ranch owners are asking for a mutual dismissal of lawsuits between the county and the bike park after saying they plan to file a new conditional use permit application. 

The announcement came Tuesday during a lengthy business meeting, when park co-owner Scott Kalbach told commissioners during public comment that the lawsuit was "pointless" because a new conditional use permit application is in the works. 

The lawsuit stems from the county’s refusal to classify Panhandle Bike Ranch as a “park” under Bonner County Code §12-816, which allows that use on Rural 10-zoned property without a CUP. Instead, the county has classified the bike park as a “recreational facility,” a use that requires a CUP. Property owners Scott and Jennifer Kalbach have argued the park’s nonprofit status allows it to operate as a noncommercial park. 

County officials denied the request, stating that the county’s use table is subject to interpretation by the planning director and that the decision was not appealable. 

"When we asked for an appeal to the board of commissioners, Deputy Prosecutor Nate Adams said the decision wasn't appealable," Scott said. "Everyone we've talked to about this situation, both land use consultants and attorneys, has said that's ridiculous. Of course, a decision from an interim planning director is appealable." 

PBR filed a lawsuit over the matter, and the county later filed an injunction request and countersuit. 

At Tuesday’s meeting, Scott acknowledged that PBR is refiling a CUP application for the proposed recreational facility after county officials denied the request to change the park’s use classification. Because of that refiling, Kalbach said, the lawsuit no longer served a purpose. 

"Why will Bonner County not dismiss the lawsuit so that both parties don't have to waste money on what is basically a pointless lawsuit at this time?" Kalbach asked. "The Bonner County commissioners said no; they would not dismiss it. Then we asked if we could at least discuss a solution via mediation, and again, Bonner County commissioners said no. They refused to even have a discussion about it. So, we're stuck in a lawsuit that we want to drop since we're coming back for a conditional use permit, and it is costing us and the taxpayers a lot of money." 

The dispute now involves two related tracks: PBR’s challenge to the county’s land-use interpretation and the county’s effort to stop the bike park from operating while that interpretation is unresolved. 

Bonner County commissioners have not said whether a resolution is in the works to dismiss or mediate on the countersuit. Per legal advice, commissioners do not actively discuss ongoing litigation.   

The background 

On April 17, 2024, Bonner County hearing examiner Jacqueline Rucker approved the Kalbachs’ request for a CUP that would allow a multi-million-dollar, 170-acre bike park to operate as a recreational facility. Two months later, the approval was upheld after both the applicant and opponents appealed the decision. 

In July of that same year, county commissioners denied a request for reconsideration. The appeal of the commissioners’ approval reached District Court in April 2025. By that time, the park was expected to open June 13. 

In a June 2, 2025, ruling, according to an administrative appeal document, District Judge Casey Simmons affirmed the appellants’ claims, agreeing that the 2024 county board failed to “identify any facts it relied on in determining the application (CUP) was for a Recreational Facility.”   

The current Bonner County commissioners then requested a full review of the file. Around that time, the bike ranch owners allege that county planning staff "floated around the idea" of operating on a donation basis and said that model would not require a CUP, according to the ranch’s website.  

The park then began operating on a donation basis and transitioned to a 501(c)(3) nonprofit, under the impression that it could operate without a CUP. 

With a new board and nonprofit operating model, PBR asked the county to recognize the property's use as a "park," which is allowed in the Rural 10 zone. The group also submitted a building location permit application for a welcome center and bathroom facility. 

Then-interim planning director Alex Feyen administratively rejected the zone interpretation, a decision that was said to be "unappealable" by county legal counsel Nate Adams under Bonner County Revised Code 12-331, which grants the planning director the authority to make a final determination based on the operational characteristics of the proposed use. 

The BLP was also denied on the basis that it would be used as an accessory structure, which is not allowed on noncommercial property.  

Commissioners Brian Domke and Ron Korn moved to deny the BLP appeal request in late January 2026, initiating a lawsuit from PBR for the refusal to allow an administrative appeal.  

During that time, biking operations continued on a nonprofit, donation basis through the summer of 2026, with PBR maintaining that it was not violating county code. Bonner County issued a cease-and-desist order, saying it still considered PBR a recreational facility rather than a park. 

While the land-use decision was being disputed, the county sought an injunction to stop PBR’s operations. District Judge Cynthia McCrea granted the injunction after hearings on June 30 and July 8. 

A decision has yet to be made on whether PBR qualifies as a park.  

At the time of publication, the Kalbachs said they are willing to drop their lawsuit against Bonner County if the county drops its countersuit. Scott Kalbach said they are seeking another CUP for the bike ranch, though it has not yet been filed, while continuing to challenge the injunction.