Kalispell’s Newest Leaders Outline Vision of Housing and Business Growth as Building Permits Break Records

The City of Kalispell’s newest city leaders on Tuesday outlined their visions to expand affordable housing, upgrade infrastructure and plan the municipality’s growth to an audience at the “State of the City Address” hosted by the Kalispell Chamber of Commerce.

Late last year, the city hired longtime Development Services Director Jarod Nygren to serve as the city manager while former city councilor Ryan Hunter in November was elected as mayor.

Kalispell Chamber of Commerce CEO Lorraine Clarno described the change in leadership as a “dramatic opportunity” at the Red Lion Inn on Jan. 20.

“We know the two gentlemen in leadership now are going to be influential, probably for a good decade or more, in terms of where we grow, how we grow and what will become of Kalispell in its evolution and its next phase,” Clarno said.

Even though Kalispell’s growth has fallen from its peak during the pandemic boom, Nygren said the city broke new records last year, with $250 million in building permits, a 50% increase from its previous high of $170 million.

While residential housing units have tapered off in recent years, commercial buildings — such as the 160-unit senior living complex on Stillwater Road, the new Amazon facility, Stockman’s Bank and the new Costco — have contributed to the increase.

“We’ve actually been estimating a slight reduction in our building permits, so I was certainly surprised when I saw that number at the end of 2025,” Nygren said.

While Costco relocated north of West Reserve Drive from its previous location on U.S. Highway 93 off Old Reserve Drive, Nygren confirmed its replacement remains unclear as the building remains vacant.

“One thing I do not know, is what’s going into the old Costco — your guess is as good as mine,” Nygren told the audience.

While new commercial building construction has been dramatically contributing to development, Nygren said the recent tax revision stemming from the 2025 Legislature has caused a tax increase of 30% to 50% for commercial property owners, raising concern among many Kalispell business owners.

In addition to commercial buildings, Nygren said the city council has approved more than 8,000 housing units in the last six years, which accounts for most of the housing demand that was laid out in the previous land use plan.

“The city council has already met 80% of that demand for the next 20 years,” Nygren said. “So, the city council won’t be that barrier to entry to build housing — it’s up to the building community to do that.”

Since the housing market has stabilized after its pandemic-era peak, Nygren said the city will be conducting a housing study after securing a grant to identify the municipality’s needs, which will likely include housing units like condos as single-family homes remain out of reach for many buyers.

Affordable housing has been a main priority for Mayor Ryan Hunter in his years on the city council, which will continue in his new leadership role with plans like appointing a citizen advisory committee on affordable housing and homelessness.

“The lack of affordable housing is making it difficult to hire, retain a workforce and is contributing to quality-of-life issues such as rising homelessness and is impacting businesses,” Hunter said.

Hunter has been exploring ideas like altering zoning requirements to have fewer regulations on uses while restricting building sizes and uses that will have greater impacts on neighborhoods.

After the city council rejected the Kalispell Main Street Safety Action Plan last year, Hunter assured the audience he is committed to ensuring the city’s downtown remains safe, vibrant and economically successful.

“I am unapologetically supportive of the Main Street Safety Action Plan,” Hunter said. “I know there is a lot of concern about that, and I hope as we move forward, we can build more community support for the details of that plan.”

To promote more transparency and community engagement, Hunter also hopes to host informal town hall meetings after hearing feedback from members of the public.

“Since the election, I’ve had a lot of meetings in the community with folks, folks wanting to talk to me, hear about my vision, share with me their concerns, their ideas,” Hunter said.

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