For the Flathead Valley, A Big Year of Economic Development Awaits

It seems fitting that the two items atop the Kalispell City Council’s first agenda for 2016 involve growth, a word that is once again beginning to define the bustling Flathead Valley.

At its meeting on Jan. 4, the council reviewed a request from Silvermont Properties to launch phase two of the Silverbrook Estates development on the north end of Kalispell off U.S. Highway 93. The developer is ready to move forward with building 197 single-family lots, 90 townhouses and 15 commercial building pads.

Silverbrook’s resurgence reflects the situation sweeping across the valley, where economic development continued a noticeable upward trend in 2015 and appears likely to make more gains in 2016.

“From what I’m hearing out there, this year is going to be even more growth than last year. For me, I’m going to have a better year in 2016 than last year,” said Chad Graham, a Kalispell city councilor and builder. “I think it’s going to be a busy year.”

From growth in residential real estate to a variety of industry sectors, bright signs of economic vitality can be found at all corners of the valley.

An influx of state and federal funding is headed this way for the final stage of the Kalispell bypass ($34 million) and launch of the city’s core area redevelopment plan and Glacier Rail Park ($10 million).

Just last week the governor’s office announced that Kidsports Complex was awarded $1.4 million for expansion.

Flathead Valley Community College is moving forward with a new 100-bed student housing facility that could cost $7 million to $9 million.

Kalispell Regional Healthcare added 30,000 square feet of medical space and spent nearly $4 million for development or renovations.

Immanuel Lutheran Communities is beginning a five-year, $45 million expansion and renovation of its health care and living facilities in Kalispell.

“In 2015, the Flathead Valley hit its stride in a more sustained economic recovery and showed the trends that will carry us into the New Year,” Kalispell Chamber of Commerce President Joe Unterreiner said in an email breaking down the valley’s economy.

He added, “This past year, Kalispell continued its evolution as a trade center, supporting job growth in the higher wage paying sectors of healthcare, business, and financial services. Commercial and infrastructure improvements are a good indicator of future job growth.”

Kalispell has one of the fastest population growth rates in the state and its status as a tourist destination is gaining even more attention. Glacier National Park set a new annual visitation record last year, and industry analysts predict an even busier year in 2016 as the National Park Service celebrates its centennial.

Glacier Park International Airport set passenger records nearly every month and is poised to announce an all-time high for the year.

“These are all good signs for job growth in the tourism and hospitality industry,” Unterreiner said.

He added, “Look for the construction and real estate industries to pick up the pace in 2016 as volumes, pricing, and jobs approach 2008 levels.”

A total of 325 new hotel rooms are under construction in the valley and should become available in 2016.

Based on a roundup of development statistics from across the valley, 2015 marked another year of substantial residential and commercial growth.

In Kalispell, the city issued permits to build 69 single-family homes, 12 townhouses, four duplexes and eight 12-unit apartment buildings. City staff members are still tallying commercial information but new growth was impossible to miss across the city, as the commercial development near Kidsports Complex begins to emerge with a new Marriot hotel and 250,000 square feet of retail, restaurant, and hospitality space.

In Whitefish, the city issued permits to build 48 single-family homes, 12 duplexes/townhomes and two multi-family residences. The number of new homes being built was down from recent years; over 70 single-family permits were issued both of the last two years. But the number of new townhomes/duplexes built in 2015 was as many as the past two years combined and the most in a single year since 2007.

On the commercial side, Whitefish saw the highest value of new development and renovation since 2005. The city issued permits for commercial projects valued at a total of $22.3 million from January through December, according to the planning department.

The influx of commercial growth includes a $9 million hotel being built in downtown and a $5.8 million Hampton Inn hotel emerging on the south end. Last year there was also a $1 million facility for Hurraw! Lip Balm, a $1 million expansion of North Valley Hospital’s Birth Center and $2 million remodel at the Mountain Mall, where Shopko established a new store.

Economic development is hitting Columbia Falls, too. The city issued permits for 15 new single-family residences, two townhomes, one six-plex and one eight-plex. The total value of residential development was $5.38 million, compared to $2.64 million only two years ago, according to city data.

On the commercial side, Columbia Falls had $6.57 million worth of new development and renovation occur last year, compared to only $237,380 two years ago.

The new development included a $4.5 million hotel and convention center and a $770,000 NAPA auto parts store, while the remodeling projects include a $1 million update of Super 1 Foods.

The future hotel, the Cedar Creek Lodge, will be 25,000 square feet with 64 rooms and a 3,000-square-foot convention center. It is slated to open in summer. The hotel’s developer, Mick Ruis, also has tentative plans to build a pie factory, a candy story, a retail marketplace, an apartment or condominium complex and a steakhouse sports bar in town.

SmartLam, the nation’s largest producer of cross-laminated timber, is also planning to build the world’s largest CLT manufacturing site in Columbia Falls this year. The new facility should break ground in spring and could be completed by fall. An estimated 40-50 employees would be hired to operate the new facility.

“Economists call for steady growth in the Flathead economy of 3 percent,” Unterreiner said. “These projections anticipate continued job growth in healthcare, nonresident travel, wood products, construction, and other manufacturing.  Best wishes to the business men and women for everything you have accomplished in 2015 and for a prosperous and healthy 2016.”

Two economic outlook events are slated for next month.

Montana West Economic Development is hosting its annual Flathead Valley Economic Forecast breakfast on Feb. 3 at FVCC. The event begins with a breakfast and networking at 7:30 a.m. and the program starts at 8 a.m. and concludes at 10 a.m. Joe Mahon with the federal reserve bank in Minnesota will appear as a special guest to discuss the region’s economy. Speakers will also include Brad Eldredge, who will discuss changing in the local workforce and economy, areas of growth and the outlook for the valley this year. To register, visit http://www.dobusinessinmontana.com.

The Bureau of Business and Economic Research is hosting its statewide seminar looking at the year ahead in Kalispell on Feb. 12. The event will be at the Hilton Garden Inn with several different speakers. To register, visit http://www.bber.umt.edu.