Valley experiences another remarkable year in development

The pace of development reached epic proportions in Flathead County in 2004, with all-time records being set or approached in a host of fundamental growth categories.

For example, a total of 1,547 residential, commercial and industrial subdivision lots received final plat approval here last year - shattering the previous all-time high of 1,055 set in 1979, according to information provided by the Tri-City Planning Office and collected from the county commissioner records.

Add in family transfers and other unplanned development and 1,925 lots were created in the Flathead last year, also an all-time record.

To put that in perspective, that's 352 more lots than would be needed to house the entire population of Columbia Falls (almost 4,000 people) based on U.S. Census Bureau average household size figures.

Single-family home construction set a new all-time mark as well.

With 1,136 new home starts here in 2004, Flathead County was the top residential construction market in Montana for the second consecutive year - and this year's record activity was up more than 27 percent from the previous high of 891 set in 2003.

"When I got this list the other day, I had the Flathead figures checked again. They almost looked like a mistake," said Byron Roberts, executive director of the Montana Building Industry Association.

The association tracks single-family home starts throughout the state, using building permit figures from various municipalities and electrical permits provided by the Montana Department of Labor.

Statewide, a record 6,596 new homes were built in 2004, Roberts said - meaning one of every six new homes built in Montana was located in Flathead County.

The estimated sale price of those 1,136 new homes exceeded $260 million, he said.

Flathead County, Kalispell and Columbia Falls each set an all-time record for the number of subdivision lots created last year.

The Kalispell figures were particularly mind-boggling: The 510 new lots approved there was twice the '03 level - and it was just slightly less than half the total number of lots created by the city during the 25-year period from 1973-'98.

As remarkable as that is, it barely kept up with demand: A total of 480 residential units were built in Kalispell last year, according to the Tri-City Planning Office's 2004 Residential Construction, Land Subdivision and Annexation Report.

(The report was released this week. It is available on the Web at www.tricityplanning-mt.com)

This rate of development is a sharp turnaround for Kalispell compared to past decades, Tri-City Planning Director Tom Jentz said. The city grew by fewer than 2,000 people between 1960 and 1990, or about 17 percent, according to Census Bureau figures. During that same period, the county as a whole added more than 26,000 people - an increase of 80 percent.

"The county was growing by 15 to 20 percent per decade, but Kalispell wasn't participating in that," Jentz said. However, "with the adoption of the growth policy and facilities plan [in the last few years], the city positioned itself to be a player and 'Boom! Things took off.'"

Another major factor contributing to municipal growth, he said, is the soaring cost of unimproved land. To make a profit, developers are looking to annex into the cities, where the availability of public utilities allows them to design smaller lots and increase the subdivision density.

"Is that a good thing?" Jentz asked. "Just because Kalispell is a player, it isn't bringing any more growth to the valley than was coming already. The question is where that growth is going to go. The city has police, fire, parks, public works - it's better able to accommodate the impacts of growth. Cities are where growth happens."

Columbia Falls is experiencing the same surge, though on a smaller scale. Its council approved a record 56 final plat lots last year. That was up slightly from '03, but still fell well short of demand: 99 residential units were built in the city in 2004, according to the Tri-City report, including 43 single-family homes, four duplex units and 52 multi-family units.

Over the last nine years, annual residential construction in Columbia Falls has exceeded lot development six times - meaning the available inventory of finished lots continues to shrink.

There's a full pipeline of upcoming subdivisions in all three cities, though, as well as in the county: Projects that currently have preliminary approval from Kalispell, Whitefish or Columbia Falls represent a total of 1,597 residential and nonresidential lots, according to the Tri-City report, although there's no guarantee that they will all be developed.

Similar figures for the county are unavailable - the Flathead County Planning Office does not compile an annual summary of development activity - but in just the last two years the commissioners have given preliminary approval to 162 subdivisions with a total of 2,010 lots. Some have already gone through final approval and are being sold; others are still in process.

Flathead Electric Cooperative set a record as well by energizing more than 1,900 new service connections in 2004 - its second all-time high in as many years.

"We're probably adding around 5 megawatts of load per year," noted General Manager Ken Sugden. "That's about the size of Lakeside. If growth keeps up like this, we'll probably be building a new substation every year just to meet the demand."

Jentz said he regularly meets people in their 40s or 50s who have decided to quit their jobs and move or relocate their small businesses to the Flathead.

"It isn't just about Kalispell," he said. "There's a major migration going on with people coming to the Intermountain West. It's about a major change in life priorities. They come here and then they start telling their friends about the place and they move here. It's the people moving in and bringing money from other places who are fueling the valley's economy right now. We're not in the same league as a Boise or Coeur d'Alene, but for communities our size, we're as active as any place in the West."

Reporter Bill Spence may be reached at 758-4459 or by e-mail at bspence@dailyinterlake.com