Whitefish looks to update affordable townhouse project agreement

Whitefish City Council on Monday will consider updating the city’s agreement to allow for a greater range of purchase prices on homes in the Depot Park townhomes project.

The Whitefish Housing Authority is developing the project and recently came to the city asking to adjust the terms of a memorandum of understanding as a result of funding shortfalls in the project due to rising interest rates and building costs. The housing authority made adjustments to the project to reduce construction costs, but has asked the city to allow for townhomes to be sold at a different price point. 

City Council meets at 7:10 p.m. at City Hall, 418 E. Second St.

Council will vote on whether to allow the homes sold at prices affordable to households with an area median income ranging from 100% to 145% AMI and any changes to pricing would have to come back to Council for consideration. Originally the plan set out in 2019 was to make homes available to households earning 80% to 120% AMI, with an average of 100% AMI. 

City Manager Dana Smith notes in a memo to Council that the range of incomes allowed to qualify for purchase was increased to provide some flexibility to the Whitefish Housing Authority as the timely sale of units is necessary for the project. 

Units are expected to be priced between $300,000 and $425,000. 

Located on the corner of Railway Street and Columbia Avenue the project is made up of 22 two-bedroom townhouse units on property formerly known as the snow lot donated by the city, which has committed to contributing $3 million to the project. 

THE PROPOSED Whitetail Ridge 77-lot subdivision on Flathead Avenue that had been scheduled for a public hearing and vote on Monday was pulled off the agenda last week at the developer’s request. The project planned for 34 acres was shot down by the Whitefish Community Development board over concerns it doesn’t provide affordable housing and fails to establish a full east-west connection between Karrow and Baker avenues. 

Council will consider whether to approve Armory Road and East Sixth Street as the next resort tax roadway reconstruction projects and authorize to proceed with engineering. The estimated cost for the Armory Road reconstruction is $6.4 million and the cost for East Sixth Street is $2.2 million. 

Public Works Director Craig Workman in a memo to Council said both projects have road surface concerns, lack bicycle and pedestrian amenities and have significant influences from school traffic. The city’s resort tax monitoring committee recommended proceeding with engineering for both projects. 

“The intention will be to proceed with preliminary engineering and public outreach on both projects to help determine which job to advance to construction next,” he said. 

During a work session at 6:15 p.m., the Whitefish Lake Institute will make its annual presentation to Council regarding its work last summer for the city’s aquatic invasive species management program including boat inspection stations on Whitefish Lake. It will also provide budget requests to Council for funding work this summer. 

Features Editor Heidi Desch may be reached at 758-4421 or hdesch@dailyinterlake.com.