Flathead County commissioners table first phase of luxury development in Lakeside
HANNAH SHIELDS | Hagadone News Network | UPDATED 28 minutes AGO
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. | September 27, 2026 12:00 AM
Flathead County commissioners delayed a vote on the final plat for the first phase of Territory 1889 on Thursday at the request of planning staff.
The placement of a water connection for the forthcoming subdivision has yet to be confirmed by Lakeside County Water and Sewer District, according to Planning Office Administrator April Derbyshire. Planning Director Erik Mack asked commissioners to push back the decision until Oct. 6, since it's a requirement for final plat approval.
Territory 1889 — formerly known as Flathead Lake Club — is a 1,700-acre luxury resort planned for development near Blacktail Mountain, west of U.S. 93 in Lakeside. Developers plan to build the major subdivision in five phases, each of which is subject to approval from the state and county.
A finalized environmental assessment released by the Montana Department of Environmental Quality on Sept. 15 approved Phase I plans to build water, wastewater and stormwater management systems for 79 residential lots and 11 open spaces.
Members of the public packed into the commissioners' meeting room on Sept. 24 to protest the Phase I vote, an hour before it was tabled. Several commenters argued the final plat should be delayed due to pending water rights from the Montana Department of Natural Resources and Conservation.
A permit for two wells to serve the subdivision is tied up in Flathead County District Court. Litigation filed by two Flathead County nonprofits, a Lakeside resident and a Texas-based real estate agency, challenged the state department's hearing process over the permit. Lewis and Clark District Court Judge Michael McMahon agreed to delay the department's hearing process for the permit in June before he transferred the case to Flathead County.
Citizens for a Better Flathead Co-Executive Director Mayre Flowers told commissioners there's no reason to rush approval of this project. The local watchdog group has launched several lawsuits over the last two years, many of them targeting the approval process of the subdivision.
She and several others argued the county could not move forward with the project without pending water rights from the state.
"There is no compelling reason that you have to make a decision today," Flowers said.
Arizona-based Discovery Land Company is behind the major subdivision, which includes 359 single-family lots, a golf course, spa, restaurants, retail stores, offices and management facilities.
The project is set to be constructed in five phases with an anticipated completion date of March 2028.
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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