Condo projects have to go through county review
Three Lakeside-area condominium projects recently lost a legal battle to be built without going through a Flathead County review.
Last month, Flathead County District Court Judge Ted Lympus ruled in favor of Flathead County, which contested three development groups' contentions that condominium projects are not required to go through subdivision reviews.
In a subdivision review, the county government looks at land being subdivided to see that plans adequately will take care of future roads, traffic, sewage and other needs.
The three condominium projects argued in court papers that their projects were not required to go through this review.
The projects are:
n Osprey, headed by Jim and Beverly Etzler. Their project called for 124 units in 31 buildings on land subdivided into five lots.
n Misty Cliffs I, headed by Bill and Larilyn Blomgren. Their project called for 105 units in four buildings.
n Misty Cliffs II, headed by Dennis and Donna Thornton. Their project called for 385 units in 17 buildings.
Several Daily Inter Lake attempts to reach the plaintiffs for comment were unsuccessful.
"It was very clear they were trying not to go through subdivision review," Flathead County Planning Director Jeff Harris said.
In legal papers, the plaintiffs argued that state law exempted condominiums projects from such reviews - a stance that might have prevailed three years ago but was changed by the 2007 Legislature.
The plaintiffs' argued that:
n Condominium projects were exempt from subdivision regulations because state law did not specifically mention them.
n Projects in scenic corridor zones - which actually address only billboard uses - and unzoned areas were exempt from subdivision reviews.
However, Harris said current state law only exempts condominiums from subdivision regulations if an area is specifically zoned for condos and condominiums are specifically designated for the site from the beginning.
In that case, zoning laws would cover what impacts a county must examine for a new condominium project.
Originally, state law gave condo developers a way to avoid county reviews of their potential impacts.
In 2002, the Missoula County commissioners denied permission to a venture called Liberty Cove Inc. to subdivide some land due to traffic and ground water concerns.
Liberty Cove decided to create an 82-unit condominium project instead - declaring that condominiums are not subject to subdivision regulations. A private party appealed that contention to Montana's Supreme Court, which ruled in Liberty Cove's favor in 2006.
The Supreme Court ruling led to a project in Park County - called Cokedale West -to declare a venture to put 12 big cabins on 540 acres as a condominium project.
That way, Cokedale could avoid county government and public qualms about steep access roads and the likelihood of wildfire damages, Park County Senior Planner Mike Inman Sr. said.
That dispute went to Park County District Court, which ruled in January 2008 in favor of Cokedale.
Since then, the Cokedale project has stalled because of internal problems.
In 2007, the state Legislature passed a law to remove any condominium exemptions from subdivision regulations. But the Cokedale project and litigation was covered by pre-2007 laws.
In April 2007 - after the Legislature passed the law - the Big Sky Development Group and Barbra Hilligoss tried to push through three condominium projects - totaling 431 units - in Ravalli County.
Those ventures cited the same alleged exemptions to subdivision reviews, said Assistant Ravalli County Attorney Karen Mahar.
However, a Ravalli County judge ruled against them in June 2008.
Reporter John Stang may be reached at 758-4429 or by e-mail at jstang@dailyinterlake.com