Mayor & City Council

WHITEFISH CITY COUNCIL August 4, 2025 SPECIAL SESSION AT 5:30 PM 1) Call to Order Mayor Muhlfeld called the meeting to order. Councilors present were Davis, Feury and Norton. Councilors Sweeney, Qunell and Caltabiano were absent. Staff present were City Manager Smith, City Clerk Howke, Planning and Building Director Taylor, and Finance Director Gospodarek. 2) Interviews The City Council interviewed Alexandria Cianciulli for the Architectural Review Committee. 3) Public Comment None 4) Appointments Councilor Norton made a motion, seconded by Councilor Davis to appoint Alexandria Cianciulli to the Architectural Review Committee. The motion carried. 5) Adjourn Mayor Muhlfeld adjourned the meeting at 5:30 p.m. and opened the work session. /s/John Muhlfeld Mayor Muhlfeld Attest: /s/Michelle Howke Michelle Howke, Whitefish City Clerk  WHITEFISH CITY COUNCIL August 4, 2025 7:10 P.M. 1) CALL TO ORDER Mayor Muhlfeld called the meeting to order. Councilors present were Feury, Caltabiano (Virtual), Davis, and Norton. Councilors Sweeney and Qunell 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, Parks and Recreation Director Butts, Deputy Police Chief Conway and Fire Chief Hadley. Approximately seven people were in the audience, and one attended virtually. 2) PLEDGE OF ALLEGIANCE Mayor Muhlfeld asked Alberto Valner 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) (YouTube Video 1:19) “Z” expressed gratitude to the Whitefish Police Department for effective traffic control and creating a safe environment. She noted that such events are not always positive or safe, and participants appreciated the visible and smooth coordination. She followed up on prior comments regarding a recent police stop, clarifying that she was not accusing any officer of racism or unlawful conduct. Her concern centered on the discretionary choices made during the stop, particularly the decision to request ID from a passenger, which she felt could contribute to perceptions of racial bias. “Z” emphasized the importance of fostering a welcoming community where residents, including immigrants, do not fear interactions with law enforcement. She referenced reports of fear within the immigrant community and urged efforts to address and correct negative impressions. She proposed exploring or enhancing community engagement initiatives, such as a police ride-along program, to build mutual understanding and transparency between officers and residents. Alberto Valner provided an update on the Alpine 93 intersection project under the agenda item “Communications from City Attorney.” He entered into a Development Agreement with the City in November 2023, which includes a requirement to provide 10% deed-restricted units per the Whitefish Legacy Homes Program (LHP). Valner expressed full support for this requirement but noted the agreement does not specify the timing for recording the deed restrictions. He reported that site improvements are underway and all public improvement permits have been obtained. Building permits are ready to be pulled pending finalization of deed restrictions. He collaborated with the City Attorney to draft and revise the deed restrictions. There was uncertainty regarding the administrator—whether it should be Whitefish Housing Authority or Housing Whitefish. He is willing to work with either, as directed by the City. Valner requested Council approval of the current draft or clear direction to staff on how deed restrictions should be implemented moving forward. He emphasized the urgency, as excavation for the first building is imminent and permit issuance is contingent on recording the deed restrictions.  CITY COUNCIL MINUTES August 4, 2025 Riss Getts, Acting Director of WHA, expressed surprise at the recommendation to remove WHA from the administrative process of the Legacy Homes Program. She referenced recent communications, including an email sent days prior, and emphasized that WHA is actively working to define its future role with a newly formed board. WHA’s current strategic direction includes continuing administration of the rental portion of the Legacy Homes Program, while proposing that the homeownership portion be managed by Kim Morisaki at the Northwest Montana Community Land Trust. They are in the early stages of forming a partnership strategy with Housing Whitefish and the City to ensure a cohesive administrative plan for both federal and local housing programs. Getts requested that WHA remain involved in the administrative process and voiced support for developer Alberto’s ability to move forward. She highlighted WHA’s client-centered strategy, which includes developing a client navigator position—a housing social worker who can guide applicants through the complex and fragmented affordable housing system. She stressed that removing WHA from the process would hinder this initiative and further fragment housing services, ultimately making it harder for Whitefish residents to access affordable housing. Maintaining a centralized administrative role for WHA is seen as essential to improving housing access and service delivery. Richard Hildner, 104 5th St., shouted out to Public Works for the chip seal in his neighborhood. It looks absolutely phantasmagorical. He also gave a shout out to Parks and Rec for fixing the leak and the sprinkler heads at Kay Beller Park. 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 July 21, 2025, Closed Executive Session b) Minutes from July 21, 2025, Special Meeting (p.223) c) Minutes from July 21, 2025, Regular Meeting (p.224) Councilor Norton made a motion, seconded by Councilor Davis to approve the Consent Agenda. 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.) a) Ordinance No. 25-08; An Ordinance amending Ordinance Nos. 18-01, 19-02, 21-14, and 23-09, which approved and subsequently amended the 95 Karrow, LLC Preliminary Plat and Planned Unit Development, to develop a mixed-use development on the former Idaho Timber property located at 95 Karrow Avenue, Whitefish (First Reading) (WPUD 25-01) (p.232) (YouTube Video 20:31) Planning and Building Director Dave Taylor presented Senior Planner Wendy Compton-Ring’s staff report that is provided in the packet on the website. Staff did not receive written comment. Councilor Norton raised concerns about the developer’s business model for the proposed 15 affordable housing units, suggesting they may be rented on a 30-day, month-to-month basis. She questioned 2  CITY COUNCIL MINUTES August 4, 2025 how deed-restricted affordable units operating this way would serve the community, expressing concern that such a model may encourage short-term visitation rather than long-term residency. Taylor clarified that the developer’s application indicates the units are intended for long-term rental, possibly through month-to-month or longer leases. Short-term rentals would not be permitted on the site except within the designated hotel area. Norton noted the challenge of verifying rental duration once the units are approved. Taylor responded that city staff actively monitors short-term rentals and would identify any violations. Norton questioned scenarios where a unit is rented for 30 days but only occupied for two weeks. Taylor acknowledged this is a broader issue governed by state law, which defines rentals of 30 days or more as long-term. Councilor Davis inquired about Condition #2 regarding affordable housing and how the figure of 122 units was determined. Taylor explained that under PUD regulations, each zoning district has a maximum density. In the WT-3 transitional residential district, 122 units is the cap. To exceed that and reach 150 units, the developer must include affordable housing to qualify for a density bonus. Davis confirmed this approach aligns with zoning regulations outside of a PUD. Mayor Muhlfeld opened the Public Hearing. Aaron Wallace, owner representative of MT Creative, reported that the project has been stalled and listed for sale over the past two years, with no activity on the site. The underlying financer is now assuming the role of developer and has introduced a new vision for the project. Wallace worked closely with city staff to outline goals and propose amendments to the Planned Unit Development (PUD) to allow greater flexibility. The project is currently in the final stages of transfer, which hinges on the approval of the PUD amendment. The plan is to complete site cleanup during the summer and begin vertical construction next summer. The proposed PUD amendment includes increasing the residential component to 150 units, along with a 70-unit hotel. Additional amendments address housekeeping items such as correcting lot coverage for Lot 3 due to previous size changes, updating parking standards to reflect current needs (with anticipated excess parking), and clarifying height limitations across the site for design consistency, as current zoning splits one of the building footprints. Wallace explained that the residential zoning allows for 122 units based on 8.71 acres at 14 units per acre. Increasing to 150 units would require 14 to 15 affordable housing units. Two buildings are planned with internal garages and are expected to be deed-restricted for affordable housing through the Whitefish Housing Authority (WHA). These units are intended for long-term rental, not high turnover, while the hotel component will serve short-term rental needs. The target demographic includes Iron Horse residents who prefer renting over homeownership. In response to Councilor Norton’s question about affordable housing, Wallace confirmed that the plan is to provide physical units rather than cash-in-lieu, with 14 units easily designated and the 15th possibly fulfilled through cash or an additional unit. He affirmed that the affordable units would be available for long- term rental. Wallace also noted that the market includes individuals who want a high-quality rental option in town without the responsibilities of ownership. Whether the units will be furnished is still undecided. Mayor Muhlfeld asked about building materials and rental pricing. Wallace stated that the developer intends to retain ownership of the units and not sell them. Rental price points have not yet been determined. Richard Hildner, 104 5th Street raised multiple concerns regarding the proposed PUD project. He questioned whether converting residential units to commercial use could impact the overall affordability of 3  CITY COUNCIL MINUTES August 4, 2025 the development and emphasized the importance of constructing affordable units concurrently with market- rate units to avoid reliance on historically ineffective cash-in-lieu models. He expressed opposition to the proposed five-foot setback, citing the need to consider fire resiliency, resistant building materials, architectural design, and landscaping as part of the Council’s decision-making process. Regarding public access to the Whitefish River and the proposed dock, Hildner supported the concept but requested clarity on how access would function, including parking availability and how users would transport equipment. He inquired about the trail extension along the river, specifically whether the segment between Sky Park Bridge and the BNSF trestle would be included. He also raised questions about enforcement of short- term rental prohibitions and sought clarification on the definition of a “condo hotel,” particularly in relation to staffing and parking requirements. Hildner criticized the proposed reduced rent program for public servants and qualified local workers, noting the absence of deed restrictions and clear definitions for eligibility. He also asked who would be responsible for applying for the 310 permit associated with the public dock. Finally, he pointed out discrepancies in the reported unit count—114 versus 122 units—which complicates calculations for required affordable housing. He concluded by reiterating the importance of concurrent construction of affordable units to ensure their delivery. Suzie Schweikert submitted a handout (available in the online meeting packet) and expressed general support for the project’s aesthetic and potential community benefits. Drawing on her rental business experience, she raised concerns about traffic impacts on Second Street, Seventh Street, and Baker Avenue, estimating up to 600 vehicles for 150 units and anticipating increased congestion during business hours. She also highlighted potential strain on the local rental market and service providers due to the scale of 150 unfurnished units, noting possible negative effects on existing long-term rental businesses serving essential workers. Schweikert questioned the absence of a homeowner’s association and the operational challenges of managing a large development. She recommended adding an Olympic weightlifting facility and pool to reduce demand on existing amenities like the Wave. Aaron Wallace clarified that 8.71 acres are zoned for residential use, allowing 122 units by right at 14 units per acre. To reach the proposed 150 units, the developer plans to add 15 deed-restricted units or offer cash in lieu to meet the 10% affordable housing requirement. This adjustment was discussed with Planner Compton-Ring, as the initial submission did not reflect the 122-unit baseline due to the developer’s absence from the original PUD process. The developer is willing to condition the project to include deed-restricted units—built first—and remove a clause previously used to meet affordability without deed restrictions. The five-foot setbacks, approved under the original PUD, support a more urban, streetscape-oriented design, and no fire or safety concerns are anticipated. The project aims to replicate a downtown-style environment. Dock design is pending, and the developer will apply for a 310 permit. On-site parking will be provided for river access. 4  CITY COUNCIL MINUTES August 4, 2025 There being no further public comment, Mayor Muhlfeld closed the Public Hearing and turned matters over to the Council for their consideration. Councilor Caltabiano made a motion, seconded by Councilor Feury to adopt Ordinance No. 25- 08; An Ordinance amending Ordinance Nos. 18-01, 19-02, 21-14, and 23-09, which approved and subsequently amended the 95 Karrow, LLC Preliminary Plat and Planned Unit Development, to develop a mixed-use development on the former Idaho Timber property located at 95 Karrow Avenue, Whitefish (First Reading) (WPUD 25-01). Councilor Feury made a motion, seconded by Councilor Norton to amend Condition #2 Reduce the overall number of units to no more than 122. One hundred and fifty (150) units may be permitted provided 10% of the total units are deed restricted for affordability (or a fee in lieu of affordable housing is paid) per the Legacy Homes Program and upon approval of a Housing Mitigation Plan and deed restricted units are built with the first phase of residential construction. (Finding 2, §11-2S- 3B, WCC) The motion carried on a 3-1 vote, Councilor Caltabiano voting in opposition. The original motion to approve carried. 7) COMMUNICATION FROM CITY ATTORNEY (YouTube Video 1:08:07) a) Consideration to amend the Affordable Rental Housing Deed Restriction for the Alpine 93/40 Project (p.279) City Attorney Angela Jacobs presented her staff report and acknowledged that the Whitefish Housing Authority (WHA) was not initially consulted regarding the deed restriction process for the current project. She noted this was an oversight due to the urgency of moving the project forward. Councilor Norton questioned WHA’s exclusion, noting its existing process. Attorney Jacobs acknowledged no known issues but cited past concerns related to Trail View deed restrictions. Councilor Davis confirmed with Acting Director Getts that WHA currently manages 11 Legacy Homes units effectively and is open to refining procedures as the program grows. Councilor Norton noted federal criteria often guide tenant qualification; Director Getts clarified that this local program allows for simpler administration. Councilor Caltabiano asked whether the developer’s concern was about unit management or timing. Alberto confirmed timing was the issue, with deed restriction delays potentially halting construction. Attorney Jacobs emphasized that deed restrictions are a city requirement and proposed a collaborative meeting with WHA. She suggested issuing permits with deed restrictions recorded prior to Certificate of Occupancy to avoid delays. Councilor Davis inquired about standard deed restriction forms and recording timelines. Jacobs confirmed standard forms are used and that recording prior to permits is not required, though administratively preferred. Councilor Feury made a motion, seconded by Councilor Caltabiano to allow the developer to apply for building permits and authorize the Building Department to issue permits with the deed restrictions applied at Certificate of Occupancy as opposed to prior to building permits. Councilor Feury noted 5  CITY COUNCIL MINUTES August 4, 2025 ongoing fragmentation in local housing efforts and expressed support for a centralized approach, referencing the upcoming Ruis project as a similar initiative. Director Getts emphasized the benefits of streamlining the housing process through a single, centralized site to improve access for applicants and property management. Councilor Davis raised concerns about making last-minute changes to the Legacy Homes Program, highlighting its carefully structured framework designed to provide clarity and consistency for developers and nonprofit partners. He stressed the importance of maintaining the program’s integrity and avoiding ad hoc modifications during critical permitting stages. The motion carried. 8) COMMUNICATIONS FROM CITY MANAGER (YouTube Video 1:28:42) a) Written report enclosed with the packet. Questions from Mayor and Council? (p.300) None b) Other items arising between July 30th through August 4th City Manager Smith reported on the Resort Tax Monitoring Committee meeting held last week, which she attended in place of Finance Director Gospodarek. A major concern discussed was Glacier Park International Airport’s planned runway closure for resurfacing in July 2026, which may impact tourism and resort tax revenue. Councilor Caltabiano, serving as Commissioner for the airport, explained that the resurfacing is mandated by FAA regulations requiring specific weather conditions – no rain and temperatures above 50 degrees. The airport negotiated a schedule with the developer to close the runway from Monday at 6:00 PM to Friday at noon each week from July 7 to July 31, allowing weekend operations. Airlines were notified one year in advance. Final grooving work will occur at night in September and will not require runway closure. Manager Smith noted concerns from the Resort Tax Committee and local businesses about timing, especially during peak travel season and events like Under the Big Sky. There is concern this could negatively affect tourism and resort tax revenue in July. Council may consider drafting a letter regarding the potential economic impact, and Manager Smith offered assistance with this. 9) COMMUNICATIONS FROM MAYOR AND CITY COUNCILORS (YouTube Video 1:34:04) Councilor Feury directed a concern and question to Deputy Police Chief Conway regarding throttle bikes on sidewalks downtown. The kids are underage drivers on throttle bikes going 30 mph on sidewalks. He was making a right onto Railway westbound off the viaduct the other day and three kids, full speed up hill right in front of him. He doesn’t know how we deal with that, but somebody is going to get seriously hurt. Either a pedestrian or one of the kids are going to get run over. It is literally the last two weeks. Deputy Chief Conway stated there have been a lot of close calls lately. He stated Chief Kelch is in the process of drafting an ordinance referencing these at the next work session. Councilor Davis referenced a proposed $58 million sewer facility in Lakeside, noting it could increase residents' utility bills by $30/month. He also cited the $19 million water storage project, of which only 15% is funded by Impact Fees. He emphasized the importance of Impact Fees in ensuring residents are not disproportionately burdened by growth-related costs, highlighting their social value despite occasional criticism. Councilor Caltabiano shared that he conducted an analysis of individuals who have engaged with the Council, as well as commentary from popular social media platforms. He observed that those expressing fear of the Whitefish Police Department were not residents within city limits, whereas supportive comments came 6  CITY COUNCIL MINUTES August 4, 2025 from local Whitefish residents. He emphasized this distinction as relevant to ongoing community discussions and protests, noting that Whitefish is an inclusive community. Additionally, he provided feedback to Deputy Chief Conway regarding HB 588, a bill concerning the legalization of electric mobility devices—such as scooters, electric unicycles, and motorized skateboards—on roadways. He recommended that Chief Kelch review HB 588, aligning with concerns previously raised by Councilor Feury. After some discussion the Council provided direction to Manager Smith with the following to be included in the FY26 Budget: (1) Increasing contribution to the SNOW Bus $5,000 for a total of $20; (2) Contribute $15K this first year to the Whitefish Community Center and dropping the mills for the housing fund to 3.5; and (3) $100K annually to Project Whitefish Kids. 10) 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 9:09 p.m. /s/John Muhlfeld Mayor Muhlfeld Attest: /s/Michelle Howke Michelle Howke, Whitefish City Clerk 7