C. Falls drops price of Cedar Creek land

A sour land market has forced the city of Columbia Falls to reduce the sale prices on its Cedar Creek property.

In 2005, the city decided to sell its land around the Cedar Creek Reservoir north of the city. Since then the city subdivided some of the property, but has been unable to sell it.

None of the eight lots listed in the Cedar Creek North and South subdivisions have sold.

“The reality is everyone knows the market is substantially depressed,” Bill Dakin of RE/MAX Mountain View said. Dakin has been handling the property listing for the city.

In the Flathead Valley, there is a 16-year supply of vacant lots for sale, he noted.

“I agree,” Mayor Don Barnhart said in response to Dakin’s comments on the market.

“My only concern is there’s nothing we can do.” 

The City Council agreed to reduce the prices to $31,000 and $35,000 per acre for lots that border Flathead National Forest land. Lots previously were $41,000 per acre. The lots range from two to five acre.

Council members Dave Petersen and Harvey Reikofski voted against the reduction.

“If you’re a buyer interested, who cares what the price is in this environment?” Petersen asked before the vote. “We can always go down, but it’s hard to go up in price.”

Dakin suggested that the council lower the prices the create “buzz” around the property.

Nearby Moose Crossing has lowered the price of its lots to about $37,000 per acre.

“We won’t have any action on [the city lots] unless we make them more competitive,” he said.

The city also lowered the price of the lots last year.

The land remains after the city sold other portions of the original property. The Cedar Creek Trust was set up from the proceeds of the sales and is designed to finance public property purchases.

In 2007 the city used money from the trust to purchase River’s Edge Park.