Kalispell City Council approves workforce housing as eligible for city funds, renews lease for golf association

Workforce housing projects became eligible for tax increment financing funds following yeses across the board at Monday’s Kalispell City Council meeting.

Council adopted the Montana Legislature’s definition of workforce housing as households making between 60% and 140% of area median income, amending the Downtown Plan and West Side Urban Renewal/Core Area Plan to include workforce housing as eligible for tax increment financing.  

According to data from government-sponsored enterprise Fannie Ma, Kalispell’s area median income in 2024 was $88,400. Sixty percent would mean $53,040 annually and 140% would come out to $123,760. 

While workforce housing projects are now eligible for tax increment financing, potential projects must go through the normal approval process, according to Development Services Director Jarod Nygren.  

Councilor Ryan Hunter sought to make amendments requiring that funds go to rental projects guaranteeing workforce affordability for a minimum of 30 years or owner housing that guarantees workforce affordability in perpetuity.  

“My concern with this is that without side boards it can become kind of a handout to developers that abuse it,” Hunter said.  

Mayor Mark Johnson worried that too many requirements would turn potential developers away from affordable housing projects.  

“The more specific we get with something like this, the less we may see it,” Johnson said. “We don’t know what might come down the road, and we may want to be flexible.”  

Councilor Chad Graham was also skeptical of putting in an amendment, arguing a 30-year contract may make it more difficult for developers to keep housing affordable with rising construction and maintenance costs. 

“Landlords aren’t just banks who shovel money out,” Graham said.  

Hunter also attempted to make an amendment requiring developers to partner with nonprofits that specialize in housing affordability. He worried that developers might abuse the system. 

“You are going to get the money going to projects that can’t ensure that they can deliver on what we are asking them to deliver on,” he said. 

Johnson opposed the measure, saying he did not want to cater to nonprofits.  

City Councilor Sid Daoud said he wanted to give developers the flexibility to come up with affordable projects. 

“I don’t want to restrict them any more than we have and I just can’t trap anybody into 30 years of poverty,” he said. 

The motion failed on a 2-6 vote.  

COUNCIL ALSO authorized a new 30-year lease with the Kalispell Golf Association for its operation of the Buffalo Hill Golf Club, located north of downtown by the Logan Health Medical Center.  

A 20-year lease was first granted by the city in 2009 and is nearing the end of its term. The extended lease allows the golf association to make property improvements of up to $75,000 without city approval and change rates from up to 10% to up to 20%.  

Councilors Jessica Dahlman and Hunter wanted to reduce the lease to 10 years, arguing a shorter term would allow Council the flexibility to enact future conditions. The motion failed.  

Councilors Sam Nunnally, Kari Gabriel, Graham and Daoud were in favor of the 30-year lease, several arguing that the existence of the course provides a financial benefit to the city. Johnson also was a proponent of the lease, saying it kept costs off the backs of the taxpayer.  

Operations and maintenance of the course is fully funded by the golf association, which makes a minimum base lease payment of $13,000 unless a rolling average of the total income of the golf course exceeds a certain threshold. 

Also included in the agreement is language for the creation of a pedestrian trail system along U.S. 93 from U.S. 2 going north. The city would incur the cost to create the trail and for any realignment of the course it may cause. 

Dahlman and Hunter argued that the city should split the cost with the golf association, but that motion to amend the lease failed.  

Graham and Hunter also butted heads over whether the association should pay a market rate lease to the city, but a majority of Council shot down the idea.  

Council on Monday also welcomed dozens of members of the Kalispell Fire Department for the induction of two new firefighters/paramedics: Chris Albrecht and Will Watson. Th epair successfully completed their yearlong probationary period. 

Johnson pinned both their badges, giving congratulations and wishing safety and good health to the newest members of the Fire Department.  

Jack Underhill can be reached at junderhill@dailyinterlake.com and 758-4407.