Kalispell Approves New Subdivisions, Receives Offer for Old School Station

Council green-lights projects on east and north sides of town, discusses offer for three lots in south Kalispell's Old School Station

By Maggie Dresser
Empty streets at Old School Station in south Kalispell. Beacon File Photo

The Kalispell City Council unanimously approved two subdivision projects on the north and east sides of town and considered the approval of the sale of three lots at Old School Station in south Kalispell lots following an offer from a developer.

The first phase of Eagle Valley Ranch’s 49-lot subdivision in north Kalispell off of U.S. Highway 93 and east of Northern Pines Golf Course will include 47 single-family and two multi-family lots. While the first phase sits on 21 acres with 4 acres of common area, the entire project will encompass 99 acres.

In a separate project, a 1-acre, four-lot residential subdivision at 435 College Avenue on Kalispell’s east side was also approved.

In November, Kalispell received offers from Matterhorn Capital LLC, a development firm, for the purchase of three lots at Old School Station, a six-lot property south of downtown off of U.S. Highway 93 that Kalispell acquired in 2015.

The city became responsible for the property’s past due taxes and assessments and the council passed a resolution to retain and sell the lots at the appraised prices in 2015.

“We acquired these essentially to avoid defaulting on Special Improvement District Bonds,” City Manager Doug Russell said. “This just allowed that mechanism to get them out on the market and in place where they could get back on the tax rolls and lead to development.”

The properties were listed for sale in 2017 in the Technology Tax Increment (TIF) District at Old School Station. Lot 6 sold in 2019 and Lot 4 sold in 2020.

Kalispell will receive $409,658 for Lot 3 and $453,420 for Lots 8 and 9. Matterhorn Capital LLC will be reimbursed of Special Improvement District (SID) payments if it completes planned capital improvements to the property within 18 months as part of the terms of a developers agreement.

“I remember voting on the largest Kalispell bailout plan I ever approved,” Mayor Mark Johnson said. “It was very distasteful at the time but we understood the impetus behind it. I am anxious to see these disappear.”

maggie@flatheadbeacon.com

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