Street right-of-way snags hospital deal

North Valley Hospital wants the city of Whitefish to abandon its 13th Street right-of-way so it can get a higher price for its existing hospital campus.

The Arizona-based Aspen Group initially offered $6.9 million for the 15-acre site that has Whitefish River frontage on the east side. When company officials learned they would need to preserve the right-of-way for a possible extension of 13th Street over the river, they dropped the offer by $500,000, hospital attorney Dan Johns told the Whitefish City Council on Monday.

"If the city does require this set-aside, the hospital takes a hit of $500,000," Johns said, explaining that more fundraising would then be required to help North Valley pay for its new hospital.

The new $30 million facility is scheduled to open during the spring on 45 acres near the intersection of U.S. 93 and Montana 40.

A city transportation plan completed five years ago for southeast Whitefish designates an easterly extension of 13th Street over Whitefish River to Voerman Road as one alternative of creating connectors between the city and southeast neighborhoods.

The transportation plan estimates such a bridge would cost $7 million, but Johns questioned the figure.

"We think a bridge may exceed that price," he said. "And the land on the other side is very wet."

City officials are opposed to the abandonment of the 13th Street right-of-way, City Manager Gary Marks noted in his report to the council. The council chose not to discuss the matter at Monday's meeting, but will take up the proposal at a later date.

Another factor complicating the feasibility of a 13th Street bridge is a parcel of city park land on the river that George Shryock dedicated to the city in 1993. Shryock said his agreement with the city stipulated the land be kept in its natural state because of its fragile ecosystem.

"I thought I had a deal," Shryock told the council. "It's about your word as a council."

The construction of a bridge in that area would require cutting down nearly every mature tree, he added.

The Aspen Group intends to build a mixed-use condominium development that will replace the old hospital campus. The condos will be upscale, appealing largely to those seeking second homes and vacation retreats. Amenities may include a fitness facility and community center with concierge services.