County approves North Shore settlement
The Flathead County commissioners on Monday approved a $1 million settlement in the North Shore Ranch lawsuit, but OK’d an amendment that would allow the property to be purchased within 30 days and placed in public ownership.
While the amendment opens the door to the possibility of preserving the valuable Flathead Lake shoreline property in perpetuity, it doesn’t take the county off the hook for the terms of the settlement with Kleinhans Farms Estates limited liability corporation, which includes developers Keith Simon and Sean Averill.
The settlement also requires the county — if the Somers subdivision goes forward — to pay for three miles of roads in the subdivision as well as turn lanes on Montana 82. That could cost up to $2 million.
Commissioners Jim Dupont and Dale Lauman voted in favor of the agreement and
amendment, but Commissioner Joe Brenneman — who along with then-Commissioner Gary Hall voted against the 364-acre North Shore Ranch project in 2008 — said he couldn’t in good conscience vote for a settlement he opposes.
The lawsuit was filed after the commissioners rejected the project.
Brenneman said a price tag can’t be put on the qualities that make the Flathead Valley the special place it is.
“The soul of the area is the one thing we can’t destroy,” he said. “It includes our ability to hunt and fish and have clean water.”
Brenneman said the full effect of a subdivision of that size, roughly 290 units, wouldn’t be known until the development actually was there.
“I think we should take it to trial,” he said of the legal challenge. “If there is a jury who feels we should spend [this amount of money] to give to an out-of-state developer, then in fact we’ve probably already lost our soul.”
Commissioner Jim Dupont said he agreed with many of Brenneman’s sentiments but stressed that property rights are a consideration, especially in light of the fact that the developers had gone above and beyond what was required.
“There was a comment from the Planning Board that this was the most well-put-together subdivision plan they ever saw,” Dupont said.
The decision boiled down to risk management for Dupont.
“We’re looking at potential risk to all taxpayers and I have to go with my gut feeling that this is the right thing to do,” he said about the settlement.
Several people had asked Dupont to remove himself from voting on the settlement because he took campaign contributions from the developers. Dupont said it was “ridiculous” to think that would influence his decision.
“I don’t think I can be bought out for a couple hundred bucks,” he said.
Dupont made a secondary motion, approved by the commissioners, to open to the public up all court records in the case except those deemed confidential because of attorney/client privilege.
He said the commissioners were put in a “pretty good pickle” because the public has insisted on transparency in the case, but the commissioners couldn’t talk about the lawsuit until it was settled.
Court records including depositions from Hall and Brenneman will be put on the county Web site within a few days.
Missoula attorney Alan McCormick, who represented Flathead County in the lawsuit, said there have been numerous discussions with interested parties about the purchase of North Shore Ranch and those negotiations are ongoing.
If the parties fail to reach a mutually acceptable agreement to buy the land, the settlement agreement would be filed in court no later than April 6.
The amendment alters the timing of the county’s payments to Kleinhans Farms Estates.
Within three days of executing the amendment, the county is required to pay $175,000, which would go toward the purchase price of the property. Then $100,000 is due within three days of filing the consent decree in court, and within three days of approval of the consent decree, $225,000 is due.
The remaining $500,000 would be split in two payments in 2011 and 2012.
FLATHEAD Land Trust is spearheading the negotiations to buy North Shore Ranch, said Brad Seaman, outreach and development director for the Land Trust. The trust also is pooling financial resources for the purchase.
A large portion of the money would come from Bonneville Power Administration mitigation funding that was set aside when Kerr Dam was built to purchase easements and further conservation efforts. Grant funding set aside through the North American Wetlands Conversation Act is another funding source.
“The money will have to come from a lot of different pots,” Seaman said. “We’re hoping the county will partner with us to a certain degree in the purchase price.”
But it’s not a foregone conclusion that the land can be purchased. Seaman said some of the Land Trust’s resources are locked into paying the appraised value.
“There is no recent appraisal to our knowledge,” he said. “We only have so much money available to us. We’ll pay what’s reasonable.”
It may be possible for the Land Trust to buy part of the property now and have an option to purchase the remainder at a later date.
“Our goal is to secure the property and put it in the hands of the citizens of Montana,” Seaman said.
MANY Flathead County residents remain opposed to the settlement.
During a short public-comment session Monday morning, Kitty Rich of Somers told the commissioners this decision “will be your legacy.”
“People are spiritually lifted by what this glacial valley actually is,” Rich said. “Your decision will be left for the end of time.”
Mayre Flowers of Citizens for a Better Flathead read a letter from that organization’s attorney, Sarah McMillan, that noted “the strong factual record appears to readily support the commissioners’ denial of the subdivision.”
McMillan said equal protection claims raised by the developer are weak and cited case studies that support the commissioners’ decision to deny North Shore Ranch.
Afterwards, Flowers said she believes the commissioners had a legitimate reason to deny the subdivision and maintained the case needs to go to court.
Features editor Lynnette Hintze may be reached at 758-4421 or by e-mail at lhintze@dailyinterlake.com