Monday, June 01, 2026
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Whitefish considers annexation for land on south entrance

by HEIDI DESCH
Daily Inter Lake | June 1, 2026 12:00 AM

Whitefish City Council on Monday will decide whether to annex about 18 acres of land on the south entrance of the city.  

The potential future owner of the property at U.S. 93 and Montana 40, where Whitefish Marine is located, is requesting annexation. The boat dealership is expected to remain on site for no more than 24 months after the planned closing sale of the property.  

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

A developer agreement submitted to the city outlines plans for the property that include no more than 256 dwelling units, two commercial pad sites and amenities for residents, and construction of a shared-use path along the highway. The development plans to participate in the Legacy Homes Program to provide 10% deed restricted affordable housing.  

While not required, the developer agreement is designed for Council to get a clear sense of the proposed development, as there will be no further Council review once annexed. There are a number of uses by right in the zoning for the property, including multi-family housing. 

Prior to construction, the project would be reviewed by the Planning Department to ensure it meets city standards. 

Also on the agenda, Council will consider a grant application to the Railroad Crossing Elimination Program. BNSF Railway approached the city about joining a grant application to the program for the construction an overpass on East Second Street. 

This program provides funding for highway-rail or pathway-rail grade crossing improvement projects that focus on improving the safety and mobility of people and goods, according to Public Works Director Craig Workman.  

The estimate for the overpass is $42 million. If awarded, the grant would cover 80% of the construction costs and remaining would be split between the city and BNSF.  

Whitefish has been working on a rail corridor crossing study to identify barriers to emergency services and wildfire evacuation, as well as mobility and access limitations, related to rail crossings. The study also looks at proposed design alternatives for the rail crossings.  

During a work session at 5:15 p.m., Council will review a water and wastewater rate model analysis. The report looks at the projected revenue and expenses for the city’s water and wastewater funds and how those funds need to be managed to maintain cash reserves to keep both utilities operational.  

At 6 p.m., Council holds a discussion on building heights as a result of changes from the Montana Land Use Planning Act. Council requested information from the Planning Department on how changes allowing for buildings 60 feet in height would affect the city’s downtown and historic Central Avenue. 

Zoning changes adopted by Council will allow 60-foot buildings in downtown commercial, heavy commercial and industrial zones. The height only applies to buildings that are multiple-unit dwellings and mixed-use development.  

There are three buildings downtown that are likely close to or exceed 60-feet in height, according to the city, including the Great Northern/Black Star building, the Train Depot and Whitefish Middle School.  

Deputy Editor Heidi Desch can be reached at 406-758-4421 or hdesch@dailyinterlake.com. If you value local journalism, pledge your support at dailyinterlake.com/support.