Columbia Falls studies what to do with dam property

Cedar Creek Reservoir, Columbia Falls' source of drinking water until 1995, could be up for sale before long.

Or not.

It all depends on the value council members place on maintaining the pristine 400 acres a few miles up the North Fork Road as a "mental asset" for the public enjoyment - or on selling it to the highest bidder, with conditions, and turning that cash into infrastructure improvements or city budget relief.

City Manager Bill Shaw handed over a preliminary report on the land's value and potential uses for it at Monday's council meeting, and asked the City Council to mull it over and come back with some direction on what the city should do with it.

Preliminary estimates put the land's value between $1.8 million and $2.2 million if it were to be sold, depending on how the land is subdivided. The North Fork Road bisects the 400 acres.

"We can keep this and turn it into something useful to the citizens," Shaw told the council. Or "we could sell it and set up a permanent trust fund" to carry out various improvements in the city.

But he sees no provision in municipal policy for the city to "feed elk and retain water for no future purpose," he told them.

"It may be great for the elk," he added, "but it's really not doing the citizens a whole lot of good."

When the city switched solely to water wells in 1995, Cedar Creek Reservoir was taken offline but the city maintained the land.

In 1972 or so, when it purchased a small portion of the land for the dam from the aluminum company, the city signed an agreement to return that parcel to the company if the city ever abandons the reservoir.

A couple of years ago, the council asked Shaw to inventory the city's assets and make some proposals on how they could be put to best use.

Disposing of Cedar Creek Reservoir was one of those suggestions and caused a stir among those opposed to the idea.

Action was put on the back burner, but is being brought up for discussion again.

The Department of Natural Resources and Conservation, Shaw told the council, is concerned about death and property loss if the dam should break. Although only 30 years old, the dam eventually will wear out - and the city will have an investment in maintaining it until then.

Shaw said a thorough appraisal of the 400 acres would give the city an idea of where lots could be divided, wetland areas, potential access and other key aspects to a potential sale.

That appraisal would cost between $3,500 and $7,000.

Shaw said the city would stipulate minimum size on parcels if the land were to be sold and subdivided, ensuring large tracts that would have a minimum impact on the character of the forested area.

"I'm not in favor of selling it," councilmember Charlie McCubbins said. "It's an asset for the citizens because of the open space it provides … If we do sell it, I think it should be put into a conservation easement."

Councilmember Tad Rosenberry questioned whether it held potential for something like the Polson golf course or other municipally owned facility.

"I don't want to spend $7,000 on an appraisal," Rosenberry said, "and we owe it to the citizens to look into" the possibility.

If the city sells the land to someone else, future profits go to someone else, he pointed out. If the city holds and develops the land, the money comes back to city coffers.

Shaw told the council the land is not suitable for a golf course. The reservoir is too small for a boating area, he added. And that form of recreational use would only invite litter, vandalism and complaints from neighbors.

"So there is a limited recreation opportunity for a city of this size," Shaw said.

By keeping those 400 acres undeveloped, surrounded by thousands of acres of U.S. Forest Service land, "we wouldn't be adding much to the pristine land area."

"It's great that we have mental assets," Shaw said, "but mental assets are not going to help your citizens pay their taxes."

Mayor Susan Nicosia noted the many unfunded items not on the city's "wish list," but on its "demand list."

"Why we looked at this in the first place," Nicosia said, "was to help pay for some of those."

"I like the trust fund idea," councilmember Don Barnhart said of Shaw's suggestion to sell the land and put the proceeds into a fund that would continue generating revenue for city projects for many years.

"This would let the people take part in the decision of what to do with the number of dollars that this would generate."

Council member Doug Karper argued that, if that were to happen, spending decisions should be made only after a series of community meetings to gauge how citizens want the money to be used.

Reporter Nancy Kimball can be reached at 758-4483 or by e-mail at nkimball@dailyinterlake.com