Mayor & City Council

WHITEFISH CITY COUNCIL July 7, 2025 SPECIAL SESSION AT 5:00 PM 1) Call to Order Acting Deputy Mayor Feury called the meeting to order. Councilors present were Caltabiano, Davis, Qunell and Norton. Mayor Muhlfeld and Deputy Mayor Sweeney were absent. Staff present were City Manager Smith, City Clerk Howke, Planning and Building Director Taylor, City Attorney Jacobs and Long- Planner Tiefenbach. 2) Interviews The City Council interviewed Paul Leisher for the Whitefish Housing Authority and the Board of Park Commissioners. 3) Public Comment None 4) Appointments Since both are Mayor appointments, and Mayor Muhlfeld was absent, appointments will be made at the July 21, 2025, meeting. 5) Adjourn Acting Deputy Mayor Feury adjourned the meeting at 5:15 p.m. and opened the work session. /s/Andy Feury Acting Deputy Mayor Feury Attest: /s/Michelle Howke Michelle Howke, Whitefish City Clerk  WHITEFISH CITY COUNCIL July 7, 2025 7:10 P.M. 1) CALL TO ORDER Acting Deputy Mayor Feury called the meeting to order. Councilors present were Qunell, Caltabiano (virtual), Davis, and Norton. Mayor Muhlfeld and Deputy Mayor Sweeney were absent. City Staff present were, City Clerk Howke, City Manager Smith, City Attorney Jacobs, Finance Director Gospodarek, Planning and Building Director Taylor, Public Works Director Workman, Police Chief Kelch, Fire Chief Hadley, and Long-Range Planner Tiefenbach. Approximately six people were in the audience, and one attended virtually. 2) PLEDGE OF ALLEGIANCE Acting Deputy Mayor Feury asked Dakota Whitman to lead the audience in the Pledge of Allegiance. 3) COMMUNICATIONS FROM THE PUBLIC– (This time is set aside for the public to comment on items that are either on the agenda, but not a public hearing or on items not on the agenda. City officials do not respond during these comments but may respond or follow-up later on the agenda or at another time. The mayor has the option of limiting such communications to three minutes depending on the number of citizens who want to comment and the length of the meeting agenda) Mr. Whitman expressed strong concern regarding the conduct and decision-making of the Community Development Board in the growth policy process. He criticized the board’s dismissal of city staff expertise and public input, particularly in favor of edits from a private interest group, Heart of Whitefish, which lacks public transparency. He urged the Council to take disciplinary action, stating the board’s actions undermine the future of local workers and the integrity of city planning. As a non-homeowner and young worker in Whitefish, he emphasized the urgent need for accountability, noting the board’s approach feels regressive and out of touch. Mr. Whitman advocated a shift from valuing tenure and experience toward prioritizing results and ideas that genuinely serve the community. 4) COMMUNICATIONS FROM VOLUNTEER BOARDS None 5) CONSENT AGENDA (The consent agenda is a means of expediting routine matters that require the Council’s action. Debate does not typically occur on consent agenda items. Any member of the Council may remove any item for debate. Such items will typically be debated and acted upon prior to proceeding to the rest of the agenda.) a) Minutes from June 16, 2025, Special Meeting (p.60) b) Minutes from June 16, 2025, Regular Meeting (p.61) c) Resolution No. 25-12;A Resolution of intention to annex and incorporate within the boundaries of the City of Whitefish by petition and consent of the property owner approximately 0.881 acres of land unaddressed along the Whitefish River adjacent to JP Road in Section 6, Township 30 North, Range 21 West and zone the property to WR-1 (One-Family Residential District), based on the findings of fact in the staff report, and set a public hearing for July 21, 2025 (WAR 25-01) (p.67) Councilor Qunell made a motion, seconded by Councilor Davis to approve the Consent Agenda as presented. The motion carried. 6) PUBLIC HEARINGS (Items will be considered for action after public hearings) (Resolution No. 07-33 establishes a 30- minute time limit for applicant’s land use presentations.)  COUNCIL MEETING MINUTES July 7, 2025 a) Ordinance No. 25-07; An Ordinance amending Zoning Regulations Title 11, Section 11-2J-2, WB-1 District, 11-2L-2, WB-3 District, 11-2-9, Definitions, and creating new Section 11-3-44, Formula Business Standards, of the Whitefish City Code (First Reading) (WZTA 25-02) (p.75) Planning and Building Director Dave Taylor presented his staff report, available in the online meeting packet. Councilor Davis expressed concern over the difficulty of denying conditional use applications and asked how a theoretical formula restaurant, such as TGI Fridays, would be reviewed. Taylor clarified such a business would not be allowed in the WB-3 zone but could apply for a conditional use in the WB-2 zone, where similar businesses exist. Denial would be difficult without substantial impact considerations like traffic or economic disruption. Council reviewed the role of conditional use applications, particularly for formula businesses, and discussed the inclusion of economic impact studies. Planner Taylor explained these studies assess potential effects on local businesses, similar to traffic studies, and would be paid for by the applicant. Councilor Qunell raised concerns about expanding listed uses through phrasing such as “but not limited to,” noting legal risks and the challenge of enforcement if a business later qualifies as a formula business. Planner Taylor confirmed that such businesses would be vested if not classified as formula businesses at the time of permit issuance. Councilor Norton inquired about the threshold change from twelve to ten locations for formula business classification, popup store regulations, and food trucks. Planner Taylor acknowledged few national examples exist and that local precedent informed the change. He noted that while downtown stores can sell branded products, they cannot operate under a formula business name, and currently there are no mechanisms for mobile or seasonal formula operations. Acting Deputy Mayor Feury opened the Public Hearing. There being no public comment, Acting Deputy Mayor Feury closed the Public Hearing and turned matters over to the Council for consideration. Councilor Feury recommended adding specific examples to the economic impact analysis, such as the number and names of competing businesses, types of products sold, employee counts, and the nature of competition. He stressed that this information could be handled administratively and didn’t necessarily need to be included in ordinance language. Councilor Caltabiano questioned the rationale behind exempting certain businesses, noting that salons are not permitted while investment firms are. Director Taylor explained that, according to current zoning code, financial services—including banks and common franchises like D.A. Davidson and Merrill Lynch—are generally allowed in the downtown area. In contrast, most downtown salons are locally owned and may be permitted in WB-1 zones only with a conditional use permit. Investment firms don’t compete with retail businesses located on Central Avenue, and professional offices are restricted from occupying storefronts along that corridor. Councilor Qunell made a motion, seconded by Councilor Davis to approve Ordinance No. 25- 07; An Ordinance amending the zoning regulations to title 11. Councilor Davis made a motion, seconded by Councilor Norton to amend the language of 11-3- 44(A) to include “but not limited to”. The motion carried. The original motion to approve Ordinance No. 25-07 as amended carried. 7) COMMUNICATIONS FROM CITY MANAGER a) Written report enclosed with the packet. Questions from Mayor and Council? (p.101) 2  COUNCIL MEETING MINUTES July 7, 2025 Manager Smith announced that Flathead County’s public education campaign has launched ahead of the November election to fund a replacement jail. She recently toured the current facility and emphasized its urgent need for upgrades. Anyone interested in arranging a tour may contact her, and she will coordinate with Commander Roots. Additional details can be found on the Flathead County website. She also raised the idea of scheduling a Council retreat in the fall and suggested possibly holding two retreats annually. To begin the scheduling process, she asked for guidance on sending out a doodle poll. Councilor Qunell stated his preference for a full-day retreat in late October, and other council members present were in agreement. b) Other items arising between July 2nd through July 7th None c) Consideration to direct 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 (p.105) Manager Smith presented her staff report that is provided in the packet on the website. Councilor Qunell asked for clarification on negotiation steps, and Manager Smith stated she was seeking direction from Council to begin that process. Legal research is needed to determine proper ownership—whether by the city, Housing Whitefish, or Whitefish Housing Authority—to ensure protection against potential judgments. Staff intends to negotiate an agreement aligned with Housing Whitefish’s proposal that suits both parties. Manager Smith confirmed $800,000 is designated in the Resort Tax fund for Alpenglow II, with additional funding available in the affordable community housing fund. Councilor Caltabiano inquired about the absence of an RFP process. Manager Smith explained it had been considered, but developer fees are expected to be higher without existing relationships, especially with Housing Whitefish and the Northwest Community Land Trust. Due to existing deadlines, staff opted to proceed with Housing Whitefish to accelerate completion. Councilor Caltabiano expressed concern about bypassing competitive bidding, noting that the involved entities are not developers and cautioning against a rushed decision. Councilor Norton invited Acting Executive Director Riss Getts to address contract and liability concerns. Riss deferred legal questions to Attorney Jacobs, indicating she was not informed of a written contract with the previous construction company. Councilor Qunell asked NWMTCLT Executive Director Kim Morisaki about financial commitment. Morisaki clarified the Land Trust will not contribute funds but will assist at the home sale phase, potentially reducing costs for buyers depending on AMI thresholds. She mentioned previous success with homebuyer assistance grants. Councilor Feury voiced concern about rising costs and revenue over time, noting affordability is becoming strained. He raised the possibility of increasing density or revisiting the design but acknowledged neighborhood process challenges. 3  COUNCIL MEETING MINUTES July 7, 2025 Councilor Qunell agreed a reset may be needed, arguing that pursuing revenue over affordability with a developer might compromise the project’s intent. He noted significant existing investment and doubted a developer could provide an affordable solution. Councilor Caltabiano questioned whether the Council was formally deliberating or simply providing direction for staff, raising the point of order. Councilor Davis made a motion, seconded by Councilor Qunell, to direct the City Manager to negotiate a developer agreement with Housing Whitefish to complete the Depot Park Townhomes project. Councilor Norton opposed the motion, citing unresolved legal issues including a $1.5 million judgment lien against the Whitefish Housing Authority (WHA), which could affect future homeowners. She emphasized the importance of resolving these legal uncertainties before moving forward and suggested the city consider a public bidding process. Councilor Caltabiano acknowledged that Housing Whitefish may currently be the most viable option, but he favored issuing a Request for Proposals (RFP) to ensure transparency. He opposed the motion for now, stating there is no harm in soliciting bids. Councilor Qunell recommended postponing the matter until the full council is present, noting the project’s significance. Manager Smith clarified that the directive at this stage is to negotiate with Housing Whitefish, not finalize a contract, and that legal issues would be addressed during negotiations. Councilor Davis reiterated his motion to have the City Manager proceed with negotiations with Housing Whitefish. He argued that redesigning the project or restarting the development phase would be economically damaging, as significant funds and infrastructure work are already in place. While acknowledging legal challenges, he believed they could be addressed through the contract negotiation process and emphasized the importance of giving Housing Whitefish the opportunity to lead the project. Councilor Feury supported moving forward with negotiations, stressing the costs and community engagement invested in the project. He agreed the legal issues were valid but felt they should not halt progress at this stage. City Attorney Jacobs outlined current legal concerns, including the $1.5 million judgment against WHA and an ongoing insurance dispute. She explained that properties owned by WHA, or the city might be exempt from enforcement of the lien but recommended further legal consultation to determine how these issues would affect the NWMTCLT and future property transfers. Councilor Norton summarized that the lien could impact the ability to sell units unless the insurance company covers the cost or another resolution is found. She cautioned against burdening Housing Whitefish or the NWMTCLT without fully understanding the implications and financial feasibility. Councilor Qunell confirmed that these concerns would be addressed during negotiations, and Councilor Feury reiterated that the council’s current action is to initiate contract discussions—not finalize a deal. Legal matters would be clarified over time. Councilor Caltabiano stated he does not advocate changes to the project design but supports issuing an RFP for the sake of transparency and due process. He wants Housing Whitefish to succeed but favors proceeding via a public bidding framework. 4  COUNCIL MEETING MINUTES July 7, 2025 Councilor Norton agreed with this suggestion, highlighting the value in opening the process to competitive bids. The motion to direct staff to start negotiations with Housing Whitefish carried on a 3-2 vote, Councilors Norton and Caltabiano voting in opposition. d) Consideration to direct staff and the Community Development Board to ensure the timeline prepared for the Growth Policy update is adhered to and carefully considered by all bodies participating in this process (p.175) Manager Smith presented her staff report, which is available on the website. Councilor Davis questioned whether the housing and land use components could realistically be completed in two months, expressing concern about the aggressive timeline. Manager Smith explained that staff anticipate holding more frequent meetings, either weekly or bi-weekly—over the next two months to meet the goal. Councilor Qunell voiced frustration about board inefficiencies, noting that some members submit new comments after votes have already occurred, causing delays and redundant discussions. He suggested clearer guidance for board members to prevent reopening finalized topics. Manager Smith confirmed staff is collaborating with leadership, including Mayor Muhlfeld and Deputy Mayor Sweeney, to help streamline the process. She expressed willingness to meet with the board chair to reinforce expectations based on Council direction. Councilor Norton asked whether more public engagement events, like the previously successful visioning sessions, could be incorporated again. Planner Tiefenbach responded that while public outreach is included in the land use RFP, the dates haven’t been set as they’re waiting on consultant input. He acknowledged the frustration caused by the slow progress over the past two years and emphasized the need to start moving quickly in August to meet end-of-year deadlines. Councilor Davis emphasized the necessity of adhering to the proposed schedule, even if it means sending issues to Council without board recommendations. Councilor Qunell suggested an incentive where any topic not completed by a deadline would automatically proceed without approval. Both Director Taylor and Manager Smith supported this idea. Councilor Caltabiano strongly endorsed staff-led direction and urged support for their timeline and authority. Councilor Norton commended the board members for their hard work and dedication, expressing confidence in the community’s commitment to completing the plan. Finally, Manager Smith reiterated that the timeline is not just about funding, it carries potential legal consequences if missed. She requested council support to reinforce this message to the Community Development Board and ensure the deadline is respected. Councilor Qunell made a motion, seconded by Councilor Davis to approve the Vision Whitefish 2045 work session program. Councilor Qunell amended the motion to include language to the effect if there is no vote to move forward by a certain deadline, it is automatically moved forward without a recommendation to the final draft, Councilor Davis supports the change. The motion carried. 8) COMMUNICATIONS FROM MAYOR AND CITY COUNCILORS Councilor Caltabiano thanked the Council for their patience with him participating remotely and thanked Jake (videographer) and IT staff. They are doing an amazing job. He is thankful to be able to attend remotely. Councilor Qunell inquired about plans to plant fruit-bearing trees, specifically serviceberry, along Karrow Avenue. Director Workman clarified that the Tree Committee selected the tree species. Norton 5  COUNCIL MEETING MINUTES July 7, 2025 mentioned prior discussions during a site walk regarding potential deer attraction from the golf course, noting that the chosen trees are not fruit-bearing. Staff will follow up on the matter. Councilor Feury expressed concerns about pedestrian safety downtown, noting risky behaviors such as crossing mid-block with young children on diagonally parked streets without checking for traffic. He remarked on the improved appearance of the viaduct, highlighting its enhanced friendliness to cyclists, families with strollers, and the attractive landscaping underway on the southwest corner near the parking area. He concluded by expressing optimism that the community will be pleased with the final outcome. 9) ADJOURNMENT (Resolution 08-10 establishes 11:00 p.m. as end of meeting unless extended to 11:30 by majority) Mayor Muhlfeld adjourned the meeting at 9:05 p.m. /s/Andy Feury Acting Deputy Mayor Feury Attest: /s/Michelle Howke Michelle Howke, Whitefish City Clerk 6