Mayor and Council letter Public Comment from Frank GarnerMay 30, 2024
The Honorable Mayor and
Members of The Kalispell City Council
City of Kalispell
201 1"Avenue East
Kalispell, MT 59901
Dear Mayor and Members of the Kalispell City Council,
Subdivision review is a "process" for a reason. As an applicant goes through the contemplation,
submission, initial staff deliberations, planning commission, and city council steps, a project will
hopefully only get better over time.
We saw this firsthand on the traffic impact dialogue. Traffic impacts were the basis for the lone
dissenting vote at the Planning Commission. In addition, our internal tracking of legally
substantive adverse public comments focused largely on traffic impacts associated with our
project. hi response, the ownership group went to work to proactively address the issue. The
result was a favorable reaction from the Montana Department of Transportation (MDT) as
reflected in its May 15, 2024 letter to the Kalispell City Council. This letter reflects a major
departure from MDT in how it views the connections between development, local government,
and the state's highway system. Historically, MDT would wait until the traffic "warrants" were
significant enough that they effectively forced the infrastructure improvements. In its letter,
MDT is willing to allow all the Tronstad Road/Silverbrook Drive intersection improvements to
occur on the front side of our development except for installing the poles and hanging the lights.
The benefits to the traffic patterns at this intersection are significant, to say the least.
As the Council is well aware, the opportunity to execute road improvements in tandem with
building new development requires a holistic understanding of expected growth throughout the
Valley and is unprecedented. Additionally, those road improvements, for the public benefit, will
also be supported with private funds, rather than taxpayer dollars. Combined, it is a unique
opportunity to leverage public -private partnerships to see major safety improvements North of
Reserve in a timeframe that serves everyone.
It is with this same "can do" attitude that our ownership group will continue to tackle the
challenge set before us - "to provide attainable housing"! While critics of the project have said
that market rate housing is not attainable, we know from local history and national studies that
failing to address our housing shortage will only intensify housing costs, despite some public
opinion that believes otherwise. The Flathead Valley Housing Market Analysis dated February
1", 2023 from the Bureau of Business and Economic Research (BBER) at The University of
Montana stated the following:
1 SouFh Montano Aveeue. Ste- M-7. Helena. 59601
(406)171-7197
TlM1
T�xm Kud Meadnvs
"They <also> found that areas with more severe underproduction of housing had the
fastest acceleration in housing prices. The conclusion of these and other studies on
housing supply is that substantial new supply is needed to bring the trajectories of prices
and rents for housing back to earth. "
"Yet this is not the conclusion of many of the players and advocates in local politics. Two
nationally representative surveys of urban and suburban residents found that many
residents associated increased development of housing with increasing prices and rents
(Clayton, et. al, 2022). Survey responses suggested that only 30-40 percent of
respondents thought that a 10 percent increase in the housing supply would lower prices
and rents. "
Despite the misattribution of the causes of high housing costs by a certain aspect of the public,
Kalispell has been at the forefront of recognizing and addressing the housing shortage in the
Flathead Valley. Thanks to the Kalispell City Council approval of nearly 1800 multifamily units
in the past number of years, the Kalispell multifamily market is being impacted in a positive
way. Further, the Kalispell City Council has managed to impact the median home price in the
Flathead by adding additional housing inventory. See attached article from the Flathead Beacon
dated June 12, 2023.
The BBER study concludes that increasing housing supply helps create competition and lowers
prices, but the Valley still has a long way to go. The study states that an additional supply of
1,500 homes per year must be added over the next 10 years to rebuild housing inventory and
provide competitive prices in the Flathead. Single family housing must be a part of the mix.
Many families need and desire two, three, and four -bedroom houses. They have children, pets,
and are looking for attainable housing options to keep them in the Valley.
Amongst other initiatives, we are actively researching and exploring programs that have been put
in place at the Montana Department of Commerce and the Montana Board of Investments to
deliver the most attainable housing product we possibly can to the marketplace. We cannot
technically execute against this strategy if we do not have an approved project.
We adamantly disagree with project opponents' contention that there is a legal basis to deny this
subdivision. The City staff report, Planning Commission record, and subsequent analysis further
support a conclusion that there are no significant impacts to public safety, fire, police, health,
critical wildlife habitat, and education associated with our project that have not been dealt with
within the mitigating conditions of subdivision approval. Our project is not "spot zoning" by any
reasonable land use planning professional's review of the facts. Moreover, as evidenced by our
May 7th, 2024 letter and in response to our solicitation for productive feedback from neighbors,
the ownership group has agreed to accommodate requests made to do certain items not required
by the Montana Subdivision and Platting Act (e.g., no third stories, leaving boundary trees in
ourn Monnn i Avenue. Ste. M-2. Helena. Mun[ar a �9G01
(406) 471-7197
place, and prohibiting construction vehicles working on our project from using Ponderosa and
Sirucek as access points).
For all of the above reasons, the BBER Study dated February 1', 2023, and the desire of all hard-
working citizens in the Flathead to have housing options, we respectfully request the Mayor and
City Council to approve the Growth Policy Amendment, Annexation, Initial Zoning of R-3
Residential, and Preliminary Plat approval for Tronstad Meadows Subdivision and Whitetail
Crossing Subdivision.
Additionally, the ownership group would like to thank the Kalispell City staff for their thorough
review and analysis, but more importantly their professionalism and dedication. We would also
like to recognize and thank our community advisory group members who have provided
insightful recommendations to make our project better. We value and honor this planning
process and believe that is p sect is better because of it.
Regards,
Frank
1 South Montana Avenue, Ste. M-2, Helena, Montana 59601
(406)471-7197
5/30/24, 7:59 AM Housing Market Returning to Pre -Pandemic Trends - Flathead Beacon
91
REAL ESTATE
Housing Market Returning to Pre -Pandemic Trends
Experts say Flathead County's housing market is continuing to cool, but prices remain high in areas with the lowest
inventory
BY MAGGIE DRESSER
TUNE 12, 2023
https://flatheadbeacon.com/2023/06/121housinq-market-retumino-to-Dre-pandemic-trends/ 1/5
5130124, 7:59 AM Housing Market Returning to Pre -Pandemic Trends - Flathead Beacon
A subdivision under construction off of Three Mile Drive on the westside of Kalispell on Sept. 22, 2021 Hunter DAntuono I Flathead Beacon
After the pandemic triggered a housing boom in the Flathead Valley three years ago,
prompting sight -unseen sales along with cash purchases, realtors say the county is
following state and nationwide trends of a cooling market.
According to Montana Regional MLS data, the median sales price in Flathead County
dropped to $577,550 this May compared to $625,00o a year ago.
"Things were super -heated two years ago," Northwest Montana Association of
Realtors (NMAR) Public Affairs Director Erica Wirtala said. "They calmed down a
little bit last year and they are going back to a more traditional market compared to
what we saw in 2021 when there was no break in the market."
During the pandemic -era housing boom in 2o2i and 2022, Wirtala said the market
was consistently hot year-round instead of the usual summer peak.
This year, buyers are rarely purchasing homes sight -unseen compared to 2O2o and
2021 when one out of every three buyers chose that method.
httas://fatheadbeacon.com/2023tO6/l2fhousinci-market-retumina-to-pre-Dandemic-trends/ 2/5
5/30/24, 7:59 AM Housing Markel Returning to Pre -Pandemic Trends - Flathead Beacon
Additionally, there's been an increase in the average days on the market. In Kalispell,
that number has nearly doubled compared to last June when the average days on the
market was 63. This May, the average days rose to 122 days.
"What we are seeing now is a return to a more traditional way of selling," Wirtala
said. A realtor will hold an open house and people will tour and make more
calculated, thoughtful choices."
With mortgage rates hovering around 7%, buyers are less likely to pay over asking
price. While some property owners have chosen to stay put in their homes in order
to retain their low interest rates that they locked into before the Federal Reserve
began increasing rates, Wirtala said realtors are noticing that trend is diminishing
as more `For Sale" signs pop up.
"Some people are downsizing or moving out of the area, or they need something
bigger," Wirtala said. "I have not seen interest rates play into sellers, it's more the
buyers"
Flathead County's median sales price has dropped but trends in Kalispell, Whitefish
and Columbia Falls vary, primarily due to the range of housing inventory in each
city.
According to MLS data, Kalispell's median sales price dropped to $499,000 this May
compared to $59O,000 in May of 2022.
"Kalispell is doing pretty good and trying to provide a lower priced product; Wirtala
said. "They aren't doing lots of big subdivisions with fancy homes. Whitefish is
always difficult to do a development in and they are doing smaller subdivisions here
and there and trying to squeeze stuff in where they can"
Whitefish's median sales price has spiked to $933,000 in May compared to $640,000
in May 2022.
Meanwhile in Columbia Falls, the May median sales price of $625,00o has not
dropped significantly from its $7OO,5O0 peak in May 2022, which Wirtala links to a
lack of inventory.
"Columbia Falls is still holding its own," Wirtala said. "Their median price is high
because it's the hip place to live. They have not dropped too much - they just don't
sell the volume. They only sold 12 houses in May."
According to a University of Montana Bureau of Business and Economic Research
(BBER) study released this year, Flathead County has faced a housing shortage since
construction slowed down during the Great Recession.
httDs://flatheadbeacon.com/2023/06/121housinq-market-retuminq-to-pre-pandemic-trends/ 3/5
5/30/24, 7:59 AM Housing Market Returning to Pre -Pandemic Trends - Flathead Beacon
In 2011, there was a surplus of 3,000 housing units but began steadily declining. In
2022, there was shortage of 3,000 units.
From 2012 to 2022, 3,> 61 units were needed in Flathead County, according to BBER
data. Economists estimate that 14,803 units will be needed from 2023 to 2032, based
on housing inventory and population growth.
According to the study, the growth in home prices has pushed many residents
beyond the limits, and housing market price pressures will likely continue.
Without you, we wouldn't be here.
The continued support from our readers keeps our lights on and helps sustain local
independent journalism in northwest Montana. Please consider a one-time gift or
sign up for a recurring contribution and join more than 500 readers in the Editor's
Club.
Every donation is injected straight into the newsroom.
httos://flatheadbeacon.00ml2023105N21housinq-market-retuminq-to-ore-pandemic-trends/ 4/5