Hearing addresses development options for Whitefish state lands

Future development options for 13,000 acres of school trust lands located near Whitefish will be the subject of a public hearing tonight.

The Montana Department of Natural Resources and Conservation, which manages the trust lands, recently submitted a neighborhood plan for the property, which runs from the Swift Creek basin north of Whitefish Lake south to Happy Valley.

The Whitefish City-County Planning Board and Flathead County Planning Board will hold a joint public hearing on the proposal tonight at 7 p.m. in the Whitefish City Council chambers.

If it's subsequently approved by the Whitefish council and the county commissioners, the plan would become a formal part of the Whitefish and county growth policies.

The document outlines a variety of mechanisms by which limited development would be allowed in a few areas, in exchange for conserving and protecting public access and natural resource uses on the bulk of the property.

For example, the Swift Creek subarea - one of six subareas included in the document - covers 2,930 acres located at the head of Whitefish Lake. It currently experiences heavy recreational use, according to the plan; it also contains about 1,200 acres of old-growth timber and provides habitat for grizzly bears, wolves, elk, deer and other wildlife.

For the next 10 years, the DNRC proposes to continue managing the area for timber production and recreational uses.

During that time, a maximum of six home sites would be available for purchase along the southern boundary. The actual home sites would be restricted to five acres, and buyers would have to donate conservation easements for the remainder of their property. Public access outside of the five acres would be maintained, although in some cases it could be limited to historic or planned trails.

If at least 1,000 acres is protected by easements within the 10-year time frame, the agency would continue to manage the rest of the Swift Creek subarea for timber and recreation for another decade.

"The objective is to engage conservation buyers who are willing to assist in the protection of the entire area," the neighborhood plan notes.

Similar approaches would be used to protect large portions of the other five subareas. However, more significant residential and commercial development would be allowed and encouraged in some locations.

Brief descriptions of the types of development proposed for the subareas:

. Happy Valley/KM - Two 480-acre parcels located on either side of U.S. 93. The KM parcel is split by KM Ranch Road.

On the Happy Valley parcel, the DNRC "would entertain any proposal from a public or nonprofit entity, or several conservation buyers, that would generate the full market return for the land and retain it as open space."

Alternatively, somebody could propose a cluster subdivision on a third of the property, as long as the project addresses some of the neighborhood sewer and water issues and contains "a significant portion" of affordable housing.

As with the entire neighborhood plan, the state would re-evaluate progress in 10 years. If the combined goals of improving revenue for the school trust and permanently protecting open space through conservation easements haven't been met, the DNRC would be free to amend the plan. (Any amendments would go through public review.)

For the KM parcel, the area east of KM Ranch Road would be managed for timber and recreation for at least 10 years. A limited amount of large-lot residential development would be allowed west of the road.

. Spencer Lake - A total of 2,740 acres located southwest of Whitefish.

DNRC is basically giving the community 10 years to develop and submit a proposal that would generate full market value for the school trust, while permanently protecting as much of the area as possible.

. Beaver Lake/Skyles - Two parcels totaling 4,810 acres located west of Whitefish and Whitefish Lake.

Limited development would be allowed south of Murray Lake and west and east of Skyles Lake. This would probably be large-lot (20-acre) residential development, although additional home sites would be allowed in exchange for purchased conservation easements in the undeveloped portion of the subarea.

DNRC is also considering the possibility of a backcountry lodge/destination resort along the south side of Murray Lake.

. Stillwater - A 1,020-acre parcel northwest of Whitefish along U.S. 93.

Limited development would be allowed on the east and west side of this area, including a potential commercial/industrial project next to the highway, on 66 acres that's also split by the Burlington Northern Santa Fe railroad tracks.

. Haskill - A 520-acre parcel with limited road access that's located northeast of Whitefish.

Two home sites would be available in this area to conservation buyers.

The DNRC's statutory mandate to generate revenue for the school trust is the driving force behind this neighborhood plan.

Timber production currently generates about $7 per acre in net revenue for the trust, according to a financial analysis included in the plan. Together with agricultural leases and about 40 cabin, residential and other leases, the entire 13,000-acre area generates about $110,000 per year.

By comparison, "if all of the potential development rights available in the neighborhood plan were purchased at [today's] value, the trust could potentially receive more than $51 million," according to the analysis. That would generate about $2.55 million per year in annual revenue, or almost $2,000 per acre, based on the limited amount of trust land (1,300 acres) that would be available for development under the plan.

The entire neighborhood plan, together with supporting documents and maps of the affected areas, is available at the Web site http://dnrc.mt.gov

Copies of the plan are also available at the Whitefish Library and the Whitefish City Hall.

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Following this joint public hearing, the Whitefish City-County Planning Board will consider two other items:

. Hilltop Partners wants approval for Phase 2 of the Great Northern Heights subdivision, a development of 25 single-family homes on 6.5 acres behind Western Building Center on U.S. 93 South.

. Tollestrup Development Group has asked the board to amend the zoning from two-family to low-density multifamily residential on 4.5 acres on Wisconsin Avenue.

The property is currently a gravel pit across from Alpine Village Market. If the zoning is approved, the developer proposes a conditional-use permit for 61 condominium units and would construct a road to connect Wisconsin and Dakota avenues.