Tuesday, October 13, 2026
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Vote on first phase of Lakeside luxury resort pushed back again

HANNAH SHIELDS | Hagadone News Network | UPDATED 1 hour, 51 minutes AGO
by HANNAH SHIELDS
RURAL GOVERNMENT REPORTER, REPORT FOR AMERICA Hannah Shields covers rural government and accountability reporting for the Daily Inter Lake and Northwest Montana weekly papers as part of the national Report for America program. Her reporting focuses on transparency, public spending and the impact of local government decisions on small communities. Shields has covered issues ranging from school district finances to development disputes and rural infrastructure projects. She regularly uses public records and investigative reporting to examine institutions that affect local residents. Her work helps bring greater oversight and visibility to rural government across Northwest Montana. IMPACT: Hannah’s work strengthens transparency and accountability in rural communities that often lack consistent watchdog coverage. | October 13, 2026 12:00 AM

Flathead County officials have again delayed approval of the first phase of a luxury resort destined for Lakeside.  

County commissioners were expected to vote on the final plat approval for Phase I of Territory 1889 in late September but tabled it until Oct. 6. The vote has been pushed back once more because of compliance issues, Planning Director Erik Mack said.  

Phase I plans for the major subdivision have changed from what was approved in the preliminary plat last year and is incompliant with two conditions, he said. Plans for the public water supply system were altered in the final plat, and developers changed their agreement to turn it over to Lakeside County Water and Sewer District. 

Mack declined to offer specifics about the changes to the agreement with the water and sewer district.  

"I don't want to go into too much detail," he said.  

Territory 1889, formerly called Flathead Lake Club, is a forthcoming 1,700-acre luxury resort located west of U.S. 93, near Blacktail Mountain. Arizona-based Discovery Land Company is behind the five-phased subdivision, which includes 359 single-family lots, a golf course, spa, restaurants, retail stores, offices and management facilities. Phase I involves constructing water, wastewater and stormwater management systems for 79 residential lots and 11 open spaces.  

Mack said his staff are meeting with developers to work out the kinks, and the final plat is tentatively scheduled to go before commissioners on Oct. 30. 

ASPECTS OF the major subdivision have been challenged by several lawsuits over the last few years. 

Two separate cases against the Montana Department of Natural Resources target a permit to access two groundwater wells on the resort. Mack said that compliance issues with the final plat include "water rights issues" with the state agency, but he declined to elaborate and did not say if there was a connection to the litigation. 

In a third lawsuit, this one regarding construction of a 159-foot dock at the resort's marina on Flathead Lake, the subdivision's developers have asked a district court judge to lift his pause on the work. Watchdog group Citizens for a Better Flathead, who filed the suit in late February, is opposing the request. 

Judge Dan Wilson is presiding over the case. A hearing on the request has not yet been scheduled. 

Report for America Reporter Hannah Shields can be reached at 406-758-4439 or [email protected]. If you value local journalism, pledge your support at dailyinterlake.com/support.

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