Greetings, Beacon nation! If anyone checked out the three-day Whitefish Arts Festival in Depot Park over the long holiday weekend, they may have wandered past the city’s old snow lot at Railroad Street and Columbia Avenue and wondered about the affordable housing development’s piecemeal progress, or lack thereof. If they’d asked me about it, as some did, I would have assured them that I’d look into it on Monday. It’s been five years, after all, and I’ve lost track of some of the finer-grained details.

Well, here we are, back to the workaday grind, and it just so happens that at tonight’s city council meeting, civic leaders will consider negotiating a new agreement with a new developer after plans to complete the 22-unit deed-restricted townhouse development (rendering pictured above) by May 2027 faltered under Whitefish Housing Authority’s purview.

I’m Tristan Scott, here to refresh our memories and recap the news in this Monday edition of the Daily Roundup.

For anyone else with blind spots in their mental record of what’s been happening over at the snow lot, let’s recap what we already know before going behind the scenes and examining the latest turns of the screw.

The city donated the 1.64-acre snow lot (located north of Railway Street, east of Columbia Avenue and south of the railroad tracks) to the Whitefish Housing Authority (WHA) five years ago, on June 1, 2020, when the property was appraised at a value of $500,000 (a 2023 tax appraisal pegs it at $1.9 million). In the fall of 2021, WHA requested additional funds from the city due to the increasing costs of construction materials, which widened the financial gap to develop the Depot Park Townhomes. On Nov. 1, 2021, the city council committed an additional $2 million to the project, using money allocated to the city through the American Rescue Plan Act. On Dec. 2, 2022, the city council approved the preliminary plat and PUD for the Depot Park Townhomes and contractors began site work.

In the spring of 2024, the WHA requested the city council adjust the range of household area median income (AMI) due to rising interest rates and even higher building costs. At the city council work session on April 1, 2024, the WHA presented the updated project budget and financial plan. On April 15, 2024, council approved an amendment to the city’s original agreement, including: extending WHA’s term to complete the project to May 2027; officially providing WHA the $2 million contribution city officials committed in 2021; adjusting WHA’s pricing model; and adjusting a construction variance to minimize costs related to sidewalks, landscaping and asphalt.

Last month, the city council approved the final plat for the Depot Park Townhomes subdivision and staff has subsequently coordinated the recording of the required deed restrictions. As of today, $1,985,179.67 of the city’s $2,968,500 total cash contribution has been spent, with $983,320.33 remaining to complete the project.

Contractually, the WHA must complete the project by May 21, 2027.

“While generally an achievable deadline at first glance, there are unforeseen barriers the WHA faces making it nearly impossible to meet. Turnover and limited staffing require a focus on current WHA operations and federal reporting requirements,” according to a staff report that Whitefish City Manager Dana Smith prepared last week for Mayor John Muhlfeld and council members. “Furthermore, due to the recent jury verdict and resulting judgment against the WHA, the ability of the WHA to cost effectively finance and complete the project is now a significant challenge.”

Per WHA’s Acting Executive Director Marissa Getts, “WHA has worked diligently to find a solution to move forward and has determined that it would be in the best interest of the project and the community that WHA transfer the project back to the city of Whitefish.”

Based on Getts’ concerns about meeting the requirements of the agreement, city staff and WHA met with representatives of Housing Whitefish to discuss their interest in potentially taking over as the developer for the Depot Park Townhomes project, according to Smith’s report.

“After careful consideration, Housing Whitefish provided a proposal. The more significant changes include a somewhat phased approach to construction to test the demand and minimize risk, as well as establishing a partnership with the Northwest Montana Community Land Trust to utilize the ground lease method which has proven successful for many Trailview Homes,” according to Smith’s report, referring to the affordable housing subdivision southeast of downtown Whitefish at Voerman and Monegan roads (pictured below).

“We appreciate our partnership with the WHA and work completed on the Depot Park Townhomes project to date. However, it is imperative this project is completed in a timely manner for our community,” according to Smith’s report. “Staff respectfully recommend the City Council provide direction to the City Manager to negotiate a developer agreement with Housing Whitefish to complete the Depot Park Townhomes project with such agreement presented to the City Council for consideration at a future meeting.”

I hope that answers some of your questions, but if it doesn’t, stay tuned to more coverage in the coming days.

Now, let’s take a look at some of the top stories from the past few days.

What You Can Buy for About $575,000: In Romy Caro’s latest real estate roundup, she features a ranch-style home on a half acre in Kalispell; a Marion property with a large detached hangar; and a Columbia Falls resident with stunning views of Glacier National Park. See all the listings here.