Whitefish plans to create more distance for marijuana dispensaries

Whitefish is considering increasing the buffer between marijuana businesses and schools and churches as well as the distance between such businesses themselves.

City Council on Monday will consider voting on an ordinance that amends the city’s zoning regulations regarding marijuana facilities. The action is set to come six months after Council placed a moratorium on new marijuana businesses while it worked to change regulations.

City Council meets at 7:10 p.m. at City Hall, 418 E. Second St.

Council previously outlined concerns about dispensaries potentially locating too close to schools and churches. The proposed ordinance would increase the separation by making city buffer requirements more robust than that used by the Montana Department of Revenue, which has exemptions for marijuana businesses addressed on different streets or having doors on different streets from schools and churches. The new regulations would eliminate the exemption in favor of a straight 500 feet separation from public entrance to public entrance.

Council also was concerned about the total number of dispensaries located downtown, so to address that the proposed ordinance will increase the distance between businesses to 500 feet from the current 150 feet. That buffer will now be the same for all zoning districts in the city.

DURING THE meeting, City Manager Dana Smith is scheduled to present Council with a proposed financial plan for the resort tax reallocation to include community housing. Council will vote on whether to send a public hearing on Aug. 7 to adopt the plan and place an item on the November ballot that would allow for 10% of resort tax collections to go to housing.

The Whitefish Housing Needs Assessment in 2022 set a target of needing 1,310 new housing units in the city by 2030 to support current residents and employees. It also said that 75% of those must be priced below the current market to meet community needs.

To fund projects that would provide housing the city is looking at asking voters to change how resort tax funds can be spent.

Smith said a 10% allocation from the resort tax funds could make a significant difference in addressing a critical community need of creating affordable housing.

“Securing resort tax as a funding mechanism can also start the pursuit of other funding opportunities such as grants, philanthropic contributions, and business community buy-in which will further leverage funds provided by the resort tax,” Smith said in her memo to Council.

The resort tax is 3% collected on “luxury” retail sales, lodging, at restaurants and for prepared food and alcoholic beverages. Funds generated from the 3% tax go to property tax relief, streets, parks and beginning in 2025 are set to go toward maintenance of the Whitefish Trail.

Currently, 1% of the tax goes to the Haskill Basin Conservation Easement, but once that easement is paid off in 2025 funds will be diverted to the rest of the areas.

Under the proposed change, that if approved by voters would go into effect in February 2005, funds would be broken up — 25% for property tax relief, 5% for administration, 48% for streets, 10% parks, 2% for Whitefish Trail and 10% for community housing. This is a reduction of 10% that had been set to be collected for streets.

Over 20 years, the percentage of funds dedicated to community housing is estimated to generate around $27 million.

The resort tax began in 1996 and has been extended and modified for how funds are spent in years since. Most recently, in November 2021, voters approved a 20-year extension of the resort tax to 2045 and a new allocation of the resort tax to include the portion for the Whitefish Trail.

In terms of community housing, funds would be distributed to two main areas, Smith notes, for the development of community housing and community housing programs.

“It is anticipated that the majority of funds will initially be allocated to development activities, but that may change over time as housing programs develop further,” Smith said.

It is intended that funds would be used to develop housing in partnership with private and/or nonprofit entities in exchange for deed restriction. Council would determine on a case-by-case basis the amount contributed to a project.

Community housing programs are anticipated for funding for a workforce assistance fund and a homebuyer assistance program.

ALSO ON the agenda, Council has two public hearings.

Council will consider an ordinance rezoning 2 acres located at 55 Hedman Lane from country residential to two-family residential.

Then Council will look at a resolution to annex just under 1 acre of land at 580 Lund Lane and zone the property to one-family residential.

During a work session at 5:30 p.m., Council will hear a presentation on Montana Department of Transportation projects. Then at 6:30 p.m., Council will discuss a potential pedestrian bridge at 95 Karrow Avenue as part of the WF Yards project.

Features Editor Heidi Desch may be reached at 758-4421 or hdesch@dailyinterlake.com.

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