The URL can be used to link to this page

I1. Fatt Boys Conditional Use Permit-1r%9**kk6 KALISPELL Development Services Department 201 lst Avenue East Kalispell, MT 59901 Phone: (406) 758-7940 Fax: (406) 758-7739 www.kalispell.com/plannine REPORT TO: Jarod Nygren, City Manager FROM: Donnie McBath, Planner II of Development Services SUBJECT: KCU-25-06 — Fatt Boys Accessory Casino Conditional Use Permit MEETING DATE: January 5, 2026 BACKGROUND: FU LLC has submitted an application for a Conditional Use Permit (KCU-25-06) to allow for an accessory casino use within the existing Fatt Boys Bar & Grille. The proposal involves an interior remodel only, with no changes to the building footprint, hours of operation, outdoor use, or parking and circulation. The site is located at 1307 U.S. Highway 2 West in Kalispell, Montana. The property is legally described as LOT 4 OF THE RESUBDIVISION OF LOTS 1 AND 3 OF GIBSON ADDITION NO. 41 TO KALISPELL, MONTANA, ACCORDING TO THE MAP OR PLAT THEREOF ON FILE AND OF RECORD IN THE OFFICE OF THE CLERK AND RECORDER OF FLATHEAD COUNTY, MONTANA. The Kalispell Planning Commission held a duly noticed public hearing on December 9, 2025, to consider the request. Staff presented staff report KCU-25-06, providing details and an evaluation of the proposal. Staff recommended that the Commission adopt the staff report as findings of fact and recommend that the request be granted subject to eleven (11) conditions of approval. One public comment was received at the public hearing. The public hearing was closed and a motion was presented to adopt the staff report as findings of fact and recommend to the Kalispell City Council that the conditional use permit be granted subject to eleven (11) conditions of approval. Board discussion concluded that the request was appropriate, and the motion passed unanimously on a roll call vote. RECOMMENDATION: CONDITIONAL USE PERMIT: It is recommended that the Kalispell City Council approve a request from FU LLC for Conditional Use Permit KCU-25-06, a conditional use permit to allow an accessory casino, subject to eleven (11) conditions of approval, located at 1307 U.S. Highway 2 West and more particularly described as LOT 4 OF THE RESUBDIVISION OF LOTS 1 AND 3 OF GIBSON ADDITION NO. 41 TO KALISPELL, MONTANA, ACCORDING TO THE MAP OR PLAT THEREOF ON FILE AND OF RECORD IN THE OFFICE OF THE CLERK AND RECORDER OF FLATHEAD COUNTY, MONTANA. FISCAL EFFECTS: There are no anticipated fiscal impacts at this time. ALTERNATIVES: Deny the request. ATTACHMENTS: Conditional Use Permit December 9, 2025, Kalispell Planning Commission Minutes Staff Report Application Materials & Maps Aimee Brunckhorst, Kalispell City Clerk Return to: Kalispell City Clerk PO Box 1997 Kalispell, MT 59903 City of Kalispell P. O. Box 1997 Kalispell, Montana 59903-1997 GRANT OF CONDITIONAL USE APPLICANT: FU LLC 1307 Highway 2 West Kalispell, MT 59901 LEGAL DESCRIPTION: LOT 4 OF THE RESUBDIVISION OF LOTS 1 AND 3 OF GIBSON ADDITION NO.41 TO KALISPELL, MONTANA, ACCORDING TO THE MAP OR PLAT THEREOF ON FILE AND OF RECORD IN THE OFFICE OF THE CLERK AND RECORDER OF FLATHEAD COUNTY, MONTANA. ZONE: B-2, General Business The applicant has applied to the City of Kalispell for a conditional use permit to allow an accessory casino use within the existing Fatt Boys Bar & Grille. The proposal involves an interior remodel only, with no changes to the building footprint, hours of operation, outdoor use, or parking and circulation at 1307 US Highway 2 West in the B-2 (General Business) zone. The Kalispell City Planning Board and Zoning Commission, after due and proper notice, on December 9, 2025, held apublic hearing on the application, took public comment and Commission recommended that the application be approved subject to eleven (11) conditions. After reviewing the application, the record, the Kalispell Planning Department report, and after duly considering the matter, the City Council of the City of Kalispell, pursuant to the Kalispell Zoning Ordinance, hereby adopts Kalispell Planning Department Conditional Use Report #KCU-25- 06 as the Council's findings of fact, and issues and grants to the above -described real property a conditional use permit to allow an accessory casino use within the existing Fatt Boys Bar & Grille involving an interior remodel only, with no changes to the building footprint, hours of operation, outdoor use, or parking and circulation in the B-2 zoning district, subject to the following conditions: The approved activity must begin within 18 months from the date of authorization, or a continuous good -faith effort must be made to bring the project to completion. 2. The development and use of the site shall be in substantial conformance with the submitted application materials and approved floor plan. 3. The project shall comply with all applicable City of Kalispell zoning regulations, building codes, fire codes, and public works standards. 4. Any construction -related impacts, including dust, noise, or debris, must be mitigated in accordance with City of Kalispell requirements. 5. A building permit shall be obtained for all interior improvements, and final inspection must be completed and approved by the City of Kalispell Building Department prior to occupancy of the expanded casino area. 6. The accessory casino area shall be fully enclosed with permanent interior walls extending from floor to ceiling in compliance with Section 27.34.040 of the Kalispell Zoning Ordinance. 7. A standard, closable interior door shall be maintained as the sole point of access to the casino area to reinforce its subordinate and restricted nature. 8. Prior to issuance of a building permit, final floor plans shall be submitted to and approved by the City verifying compliance with casino regulations, including floor -area limitations, physical separation, and access -control requirements. 9. All signage shall comply with Chapter 27.22 of the Kalispell Zoning Ordinance. The existing legally established exterior signage may remain as a grandfathered condition; however, any new signage, replacement signage, or modification to existing signage shall not advertise or draw attention to the casino component, including gaming -related wording, imagery, symbols, neon lighting, or similar features intended to promote gambling activity. 10. The missing sidewalk segment along the Highway 2 West frontage shall be constructed to complete the pedestrian connection. Final design, alignment, and construction details shall comply with City of Kalispell Public Works Standards and will be reviewed during the building permit process. 11. The project shall comply with all applicable fire code requirements, including fire alarm and suppression standards for Assembly Group A-2 occupancy. Compliance shall be verified through the City of Kalispell Building Department and Fire Department prior to final inspection. Dated this 5th day of January, 2026. Ryan Hunter Mayor STATE OF MONTANA ss County of Flathead On this day of , 2026 before me, a Notary Public, personally appeared Ryan Hunter, Mayor of the City of Kalispell, known to me to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same on behalf of the City of Kalispell. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial Seal, the day and year first above written. Notary Public, State of Montana KALISPELL CITY PLANNING COMMISSION MINUTES OF REGULAR MEETING December 9, 2025 CALL TO ORDER AND ROLL The regular meeting of the Kalispell City Planning Board and CALL Zoning Commission was called to order at 6:00 p.m. Commission members present were Chad Graham, Pip Burke (Zoom), Joshua Borgardt, Cate Walker and Rory Young. Jarod Nygren, PJ Sorensen, Donnie McBath, and Kari Barnhart and Kirstin Robinson represented the Kalispell Planning Department. APPROVAL OF MINUTES Young moved and Walker seconded a motion to approve the minutes of the November 12, 2025 meeting of the Kalispell City Planning Board and Zoning Commission. VOTE BY ACCLAMATION The motion passed unanimously on a vote of acclamation. HEAR THE PUBLIC Kyle Voigtlander — 840 4' St W — Has concerns for new development straining the city's infrastructure, the number of vacant rental units in the city, and the impact HOAs have on homeowners, He would like for the commission to consider these concerns when voting on projects. KCU-25-06 — FATT BOYS File #KCU-25-06 — FU LLC (Fatt Boys Restaurant & Casino) - Fatt Boys has submitted an application for a Conditional Use Permit to allow for the expansion of the existing casino floor area at 1307 Highway 2 West. The proposal involves increasing the casino area from 792 square feet to 947 square feet within the existing 5,5 82-square -foot restaurant and casino building. No exterior expansion is proposed. The Conditional Use Permit will be reviewed as a new permit for an accessory casino. The property is located within the B-2 (General Business) zoning district. STAFF REPORT Donnie McBath representing the Kalispell Planning Department reviewed Staff reports #KCU-25-06. Staff recommends that the Kalispell City Planning Commission adopt Staff Report #KCU-25-06 as findings of fact and recommend to the Kalispell City Council that the Conditional Use Permit be approved, subject to the conditions of approval on the staff report. BOARD DISCUSSION McBath advised Walker that the sidewalk plans would be on the building permit site plan. Sorensen confirmed with Graham that this CUP would not fall under the pending zoning text amendment that Council will be voting on 12/15/25 but there would always be potential enforcement mechanisms. PUBLIC HEARING Kyle Voigtlander — 840 4' St W — Opposes the CUP and has concerns that the City's requirements put a strain on the business owner and would like the condition removed. Kalispell City Planning Commission Minutes of the meeting of December 9, 2025 Page I 1 MOTION — KCU-25-06 Young moved and Walker seconded that the Kalispell City Planning Commission adopt Staff Report #KCU-25-06 as findings of fact and recommend to the Kalispell City Council that the Conditional Use Permit be approved, subject to the conditions of approval on the staff report. BOARD DISCUSSION Nygren advised Young that the required sidewalk would connect the entire corridor, that the city standard requires them, and that they are on the Transportation Plan and Growth Policy. Borgardt stated that the sidewalk is a good option for patrons. Sorensen added that the owner wanted to make the sidewalk connection as a business investment. ROLL CALL — KCU-25-06 Motion passed unanimously on a roll call vote. BOARD MEMBER SEATED Young recused himself from KCU-25-07 & KCU-25-08; he is a representative for the applicants. KCU-25-07 — VILLAGE LOOP File #KCU-25-07— Neil Johnson / Village Loop Multifamily - A MULTIFAMILY request for a Conditional Use Permit to allow the development of two multi -family residential buildings located at 95 Village Loop, within the RA-2 (Residential Apartment) zoning district. The proposal includes one 12-unit residential building and one 24-unit residential building, along with internal parking and circulation, sidewalks, municipal water and sewer connections, stormwater facilities, and associated site improvements. Multi -family residential development is allowed within the RA-2 zoning district subject to Conditional Use Permit approval. STAFF REPORT Donnie McBath representing the Kalispell Planning Department reviewed Staff reports #KCU-25-07. Staff recommends that the Kalispell City Planning Commission adopt staff report #KCU-25-07 as findings of fact and recommend to the Kalispell City Council that the Conditional Use Permit for the Village Loop Multifamily project be approved, subject to the conditions on the staff report. BOARD DISCUSSION Sorensen clarified the recreational amenities and the Site Review process to Walker. PUBLIC HEARING Kyle Voigtlander — 840 4' St W — Opposes the CUP and feels that the project doesn't fit the area, there aren't enough parking spaces, and the fire station is too far away. Ron Jarvis — 85 Village Loop — opposes the CUP and feels that the project doesn't fit the area, there aren't enough parking spaces, and has concerns about the soil stability. Katie Ramey — 60 & 63 Village Loop — Has concerns about parking, traffic, and children walking to the nearby elementary school. Kalispell City Planning Commission Minutes of the meeting of December 9, 2025 Page 12 Neil Johnson — 411 Summit Ridge Dr — He is the applicant and wants to provide entry level housing for young families. He stated the parking is sufficient, the traffic flow will be different and understands the concerns of the previous commenters. Lynette Jarvis — 85 Village Loop — Opposes the CUP, has concerns with the impacts to the sewer services and water buildup, and feels that 3 story buildings are too tall for the area. MOTION — KCU-25-07 Walker moved and Borgardt seconded that the Kalispell City Planning Commission adopt staff report #KCU-25-07 as findings of fact and recommend to the Kalispell City Council that the Conditional Use Permit for the Village Loop Multifamily project be approved, subject to the conditions on the staff report. BOARD DISCUSSION Sorensen advised Borgardt and Graham that the site will undergo stormwater review by Public Works and the historical runoff rate must be maintained or improved by the developer. Sorensen advised Walker that a traffic impact study was not triggered. Nygren advised the Commission that it could require a crosswalk due to the close proximity to Edgerton Elementary school. Graham confirmed with Sorensen the use meets the zoning and the parking meets the requirements which will be dropping in the future due to state laws. Walker and Graham stated that a crosswalk by the school would be appropriate. MOTION — KCU-25-07 Walker made a motion and Borgardt seconded to amend the CUP AMENDMENT to include evaluation of a public crossing on Whitefish Stage Rd to be coordinated with the Public Works department as condition #15. ROLL CALL — KCU-25-07 Motion passed unanimously on a roll call vote. AMENDMENT ROLL CALL — KCU-25-07 Motion passed unanimously on a roll call vote. KCU-25-08 — NORTHWESTERN File #KCU-25-08 — NorthWestern Energy Shop Addition - A ENGERGY SHOP ADDITION request from NorthWestern Energy for a Conditional Use Permit to allow the expansion of the existing utility storage yard and office located at 890 N. Meridian Road within the B-1 (Neighborhood Business) zoning district. The proposal includes the construction of a 5,305 square foot building addition to provide enclosed space for equipment and fleet storage. The use of the property will remain the same, and no change to site access, circulation, or operational hours is proposed. A Conditional Use Permit is required because utility storage yards and associated offices are a non -conforming use in the B-1 zone. STAFF REPORT Donnie McBath representing the Kalispell Planning Department reviewed Staff reports #KCU-25-08. Staff recommends that the Kalispell Planning Commission adopt staff report #KCU-25-08 as findings of fact and recommend to the Kalispell City Planning Commission Minutes of the meeting of December 9, 2025 Page l3 Kalispell City Council that the conditional use permit be approved subject to the staff report. BOARD DISCUSSION None. PUBLIC HEARING Arthur Fretheim — 240 9th St E — Wanted to know if this is unrelated to the NWE data centers. Drew Digman — Jackola Engineering — Advised the commission that the project is not related to the data centers and would be happy to answer any questions. MOTION — KCU-25-08 Walker moved and Borgardt seconded that the Kalispell Planning Commission adopt staff report #KCU-25-08 as findings of fact and recommend to the Kalispell City Council that the conditional use permit be approved subject to the staff report. BOARD DISCUSSION None. ROLL CALL Motion passed unanimously on a roll call vote. BOARD MEMBER RE -SEATED Young resealed. OLD BUSINESS Sorensen updated the commission on city council action on items from the November Planning Commission meeting. NEW BUSINESS Sorensen updated the board on the upcoming Tuesday, January 13, 2026 Planning Commission Meeting and Work Session. ADJOURNMENT The meeting adjourned at approximately 7:19 PM. WORK SESSION Transitioned into work session on the Montana Land Use Planning Act. Chad Graham President APPROVED as submitted/amended: Kirstin Robinson Recording Secretary Kalispell City Planning Commission Minutes of the meeting of December 9, 2025 Page 14 Fatt Boys CONDITIONAL USE PERMIT — STAFF REPORT #KCU-25-06 KALISPELL PLANNING DEPARTMENT December 9, 2025 A report to the Kalispell City Planning Commission and the Kalispell City Council regarding a request from FU LLC for a Conditional Use Permit to allow expansion of the existing casino floor area in conjunction with an existing restaurant use at 1307 Highway 2 West, Kalispell, MT. A public hearing has been scheduled before the Planning Commission for December 9, 2025, beginning at 6:00 PM in the Kalispell City Council Chambers. The Planning Commission will forward a recommendation to the Kalispell City Council for final action. BACKGROUND INFORMATION The applicant, FU LLC, is requesting a new Conditional Use Permit (CUP) to formally authorize the existing accessory casino use and allow an interior expansion of the gaming area from approximately 792 square feet to 947 square feet within the existing Fatt Boys Restaurant & Casino building at 1307 Highway 2 West. The casino component has operated at this location for many years as a legally established use that predates current zoning requirements for Conditional Use approval in the B-2 zoning district. Because the existing casino use became nonconforming when CUP standards for accessory casinos were later adopted, this application seeks to bring the use into conformity with current regulations while permitting a modest interior expansion. The proposed expansion remains below the 20-percent maximum floor area permitted for an accessory casino use under the Kalispell Zoning Ordinance. All improvements, including the interior remodel and reconfiguration of the gaming area, will occur entirely within the existing building, with no exterior construction or changes to the site footprint. The subject property is located within the B-2 (General Business) zoning district, which allows restaurant and bar uses by right but requires Conditional Use approval for casino components to ensure compatibility with adjacent uses and appropriate integration into the commercial corridor. Under Section 27.34.040 of the Kalispell Zoning Ordinance, accessory casinos are subject to specific operational and design standards, including: 1. Accessory Nature: Casino use must remain clearly incidental and subordinate to the primary restaurant/bar use and may not exceed 20 percent of the total commercial floor area. 2. Separate Gaming Area: Gaming machines must be located within a defined and fully segregated area of the floor plan. 3. Signage Restrictions: Exterior signage may not reference gaming, gambling, cards, dice, chance, or similar themes, or use imagery intended to draw attention to the casino component. 4. Compatibility: The casino must maintain compatibility with surrounding land uses in terms of scale, design, hours of operation, and overall character, and must not adversely impact traffic or neighborhood conditions. Development Services Department ca'r i 7 1st Avenue East Kalispell, MT 59901 KALISPELL Phone Phone (406) 758-7940 CONDITIONAL USE PERMIT Email: planninq(a�kalispell.com Website: www_kalispell.com Project Name Property Address Fatt Boys Restaurant & Casino 1307 Highway 2 West NAME OF APPLICANT Applicant Phone FU LLC (406) 871-4669 Applicant Address City, State, Zip 1307 Highway 2 West Kalispell, Montana 59901 Applicant Email Address fu@fattboys.com OWNER OF RECORD Owner Phone FU LLC (406) 871-4669 Owner Address City, State, Zip 1307 Highway 2 West Kalispell, Montana 59901 Owner Email Address fu@fattboys.com CONSULTANT (ARCHITECTIENGINEER) Phone PCA Architects P.C. (406) 314-6393 Address City, State, Zip 600 Hogue Drive, P.O.Box 1153 Bigfork, Montana 59911 Email Address pconover@pca-architect. cm POINT OF CONTACT FOR REVIEW COMMENTS Phone Patrick Conover (406) 314-6393 Address City, State, Zip 600 Hogue Drive, P.O. Box 1153 Bigfork, Montana 59911 Email Address pconover@pca-architect.com List ALL owners (any individual or other entity with an ownership interest in the property): FU LLC Legal Description (please attach a full legal description for the property and a copy of the most recent deed). Before the application will be deemed to be accepted for review, our office must receive an approval of the legal description from the Flathead County Plat Room. Please submit the legal description to their office (plat@flatheadcounty.gov). Development Services (.,,,. OI- Department 201 1st Avenue East ALISPELL Kalispell, MT 59901 Phone (406) 758-794-7940 1. Zoning District and Zoning Classification in which use is propsed: B-2 Business 12. Attach a site plan of the affected lot which identifies the following items: a Vicinity map and surrounding land uses b. Dimensions and shape of lot c Topographic features of lot d. Size(s) and location(s) of existing buildings e. Size(s) and location(s) of proposed buildings f. Existing use(s) of structures and open areas g, Proposed use(s) of structures and open areas h. Existing and proposed landscaping.. screening, fencing open space & signage i. Exisiting and proposed parking.. loading. lighting & traffic circulation j. Existing and proposed garbage collection, streets & utilities k. Floodplain if applicable I. Adjacent sidewalks & bike trails 3. Attach Building Elevations - (drawing of any proposed building and/or addition showing views from north, south, east and west ) 4. On a separate sheet of paper, discuss the following topics relative to the proposed use (please elaborate beyond referencing materials listed above): a Traffic flow and control b. Access to and circulation within the property c. Off-street parking and loading d. Refuse/garbage collection and service areas e. Utilities (water, sewer_ electric. etc.) Screening and buffering g. Signs, yards and other opens spaces h. Height, bulk and location of structures i. Location of proposed open space uses j. Hours and manner of operation k. Noise, light, dust, odors, fumes vibration, glare and heat I. Storm drainage m. Fire/Police 5. Attach supplemental information for proposed uses that have additional requirements (consult Planner) 1 hereby certify under penalty of perjury and the laws of the State of Montana that the information submitted herein, on all other submitted forms, documents, plans or any other information submitted as a part of this application, to be true, complete, and accurate to the best of my knowledge. Should any information or representation submitted in connection with this application be incorrect or untrue, I understand that any approval based thereon may be rescinded, and other appropriate action taken. The signing of this application signifies approval for the Kalispell City staff to be present on the property for routine monitoring and inspection during the approval and development process. Applicant Signature Date 600 Hogue Drive P.O. Box 1153 Bigfork, Montana 59911 406.314.6393 ApmftkyukE RLAWING cOhsuLnna City of Kalispell Development Services Department 201 1stAvenue East Re: Fatt Boys Restaurant & Casino 1037 Highway 2 West The following are supplemental statements to the Conditional Use Permit for Fatt Boys Restaurant and Casino interior improvements 1037 Highway 2 West: 2. a. See attached site plan for the Vicinity Map b. See attached site plan for lot shape and dimensions. c. The lot and building structure is existing. No topographic features are available. d. The existing building is 5,582 sf with a 720 sf exterior deck on the east side of the building. e. No new buildings are proposed for this application. f. This structure and business is an existing restaurant and casino. g. The use will continue to be Fatt Boys Restaurant and Casino. h. All landscaping is existing and there will be no new landscaping. i. All parking, loading, lighting and circulation is existing with no proposed. j. Garbage collection is done by the city. There is an existing trash enclosure on site. k. No floodplain issues exist for this property. I. There is an existing city sidewalk along Highway 2 West. There are no other sidewalks or bike trails adjacent to the property. 3. Refer to submitted elevation showing existing materials and height of building. The sign is existing and there will be no changes or modifications to it. 4. a. Traffic flow along Highway 2 West will not be altered or effected by this application. b. See the site plan on A000 for existing access to the site from Highway 2 West. c. See the site plan on A000 for parking location and circulation and the existing loading area. d. Garbage collection will continue to be done by existing city services. e. All utilities to the building are existing. There is no requirement for altering those utilities. f. There is no proposal for any screening of buffering of the building. g. There is an existing sign on a pylon along Highway 2 West. There will not be any changes to it.. h. The existing building is approximately 23 feet tall, and no alterations are being proposed. i. There are no open spaces existing or proposed for these interior improvements. j. The hours of operation Monday to Friday are 11:00 a.m. to 12:30 a.m., and Saturday and Sunday 10:00 a.m. to 12:30 a.m.. k. The exterior of the building will not be changing and will not be creating any new light, dust, vibrations, glare or heat. All noises are contained within the building. Fumes and odors are to be controlled by new exhaust system filtering systems for the kitchen cooking equipment. I. There are no requirements or revisions for storm drainage associated with this development. m. Fire and police are provided from existing city service. C/) I• w N 00' 51' 57" E 145.32' AccE88 EASE1.1Em � m z - - -- S 00' 26' 12" W 199,01' - - - - - - m o~ znzm n m F F nn n m� coon ni w FF m m'm - �o wvw' 0 O z m `_, 0 0 1 m 0 Ift 0 0 0 0 ❑0 ❑0 � U U I The proposed interior expansion and remodel will continue to operate under all applicable state gaming regulations. As no exterior site or building modifications are proposed, the request is consistent with the Kalispell Growth Policy's Commercial land -use designation for the Highway 2 West corridor, which encourages reinvestment, upgrades to existing commercial facilities, and continued operation of established restaurant and entertainment uses along major commercial corridors. A: Applicant: FU LLC 1307 Highway 2 West Kalispell, MT 59901 B: Location: 1307 Highway 2 West, Kalispell, Montana. The property can be legally described as LOT 4 OF THE RESUBDIVISION OF LOTS 1 AND 3 OF GIBSON ADDITION NO. 41 TO KALISPELL, MONTANA, ACCORDING TO THE MAP OR PLAT THEREOF ON FILE AND OF RECORD IN THE OFFICE OF THE CLERK AND RECORDER OF FLATHEAD COUNTY, MONTANA. C: Existing Land Use and Zoning: The site is currently developed as a restaurant with an accessory casino. The property is zoned B-2 (General Business). The B-2 district is intended to provide areas for a wide range of commercial activities that serve both the community and the traveling public, including retail, restaurant, bar, entertainment, lodging, and service uses. The district promotes commercial development along principal 2 corridors where automobile access is typical, and allows accessory casino uses through the Conditional Use Permit process to ensure compatibility with surrounding commercial development. D. Size: The existing building area is 5,582 square feet, with an additional 720- square-foot exterior deck. The existing casino area occupies approximately 792 square feet on the main floor. The applicant proposes to expand the casino area to 947 square feet, representing an increase of 155 square feet. The resulting casino footprint constitutes 16.9% of the primary commercial floor area, remaining below the 20 percent maximum permitted for an accessory casino use under Section 27.34.040 of the Kalispell Zoning Ordinance. E: Adjacent Zoning: North: B-2 East: B-2 South: B-2 West: B-2 F: Adjacent Land Uses: North: Commercial East: Commercial South: Commercial West: Commercial G: General Land Use Character: The subject property is located along Highway 2 West, a major commercial corridor characterized by restaurant, retail, service, and entertainment uses. The proposed casino area expansion is internal to the existing building, with no exterior site or fagade changes. The use is compatible with surrounding commercial land uses and aligns with the corridor's established development pattern. H: Relation to the Growth Policy: According to the Kalispell Growth Policy Future Land Use Map, this property falls within the Commercial land use designation. This designation supports a broad range of retail, restaurant, and entertainment uses, including accessory casinos, particularly along major commercial corridors such as Highway 2 West. The project is consistent with the Growth Policy's goals of supporting business development, reinvestment in existing commercial properties, and diversifying the local economy. 3 Kalispell Growth Policy KALISPLLL KCU-25-06 Fatt Boys Y// Subject Parcel Corrercizl yh [Dens ty Hig- De-s ty Rr, .ential Residenta Floodway r y. NO ��f/�/ 000 Commercial yn � Data sources: Montana ada3tml, R 0 75 150 300 450 Flathead Courts GIB (Sty of Kalispell GIs, i Feet Basemap: Austin Bachurski - October 22, 2025 ESi1 1-S;rii n,i 1 ty Maps, ArcGl S. co L• Availability of Public Services and Extension of Services: The property is currently located within the City of Kalispell and all services are available to the property. Sewer: City of Kalispell Water: City of Kalispell Refuse: City of Kalispell Electricity: Flathead Electric Cooperative Gas: NorthWestern Energy Telephone: Lumen Schools: School District 95 Fire: City of Kalispell Police: City of Kalispell 4 EVALUATION OF THE CONDITIONAL USE PERMIT REQUEST The applicant is requesting a new Conditional Use Permit (CUP) to formally authorize the existing accessory casino use and allow an interior expansion of the segregated gaming area. The casino component has operated within the establishment for many years as a legally established use that predates current zoning standards requiring Conditional Use approval for accessory casinos in the B- 2 district. With the adoption of those regulations, the casino became a lawful nonconforming use. This CUP request is intended to bring the use into conformity with current regulations and to evaluate the proposed expansion under both the general conditional use criteria in Section 27.34.010 and the specific standards for accessory casinos in Section 27.34.040 of the Kalispell Zoning Ordinance. The existing casino area consists of approximately 792 square feet. The applicant proposes to expand the casino area to 947 square feet, an increase of 155 square feet. The resulting casino footprint will represent approximately 16.9 percent of the primary commercial floor area, remaining below the 20- percent maximum permitted for an accessory casino use. Following the expansion, the development will continue to function primarily as a restaurant with a subordinate gaming component, consistent with the intended use hierarchy of the B-2 (General Business) zoning district. General Standards: The use remains appropriately sited within an existing commercial building fully served by public infrastructure. The expansion and remodel occur entirely within the existing floor plan and do not 5 alter the external appearance or operation of the site. Adequate parking, circulation, utilities, public services, and access are in place and remain unchanged. The casino component is subordinate to the primary restaurant/bar use and is compatible with surrounding commercial development along the Highway 2 West corridor. Specific Standards Compliance (Section 27.34.040 — Casinos): • Floor Area: Within 20% allowable limit. • Physical Separation: The gaming area is fully enclosed with permanent walls that extend from floor to ceiling and includes a standard door, providing complete physical separation from the main restaurant and bar. This separation maintains the required distinction in use, enhances sound and visual containment, and ensures the gaming component does not dominate the primary business activity. • Entrances: There will be a single shared public entrance for the entire establishment from the parking lot off of the highway. No separate exterior entrance to the casino area is proposed, which reinforces the subordinate nature of the casino to the primary restaurant/bar use. • Signage: All signage will comply with the design limitations established in Section 27.34.040, which prohibit any exterior references to gaming, gambling, or similar themes. No neon lighting, symbols, or words associated with casino activity will be used. This ensures compatibility with the surrounding commercial area and avoids drawing undue attention to the casino component. • Landscaping: All existing site improvements will remain. No additional landscaping or buffer areas are proposed or required. The subject property is located within the B-2 (General Business) zoning district and is surrounded on all sides by commercially zoned and developed properties. Because the casino use is accessory to an existing restaurant use, occurs entirely within the interior of the building, and does not create outdoor activity areas or intensify off - site impacts, there is no land use conflict with adjacent properties that would necessitate screening or buffering. The proposed interior expansion does not alter site layout, increase building footprint, or introduce new exterior impacts; therefore, additional landscape measures or separation treatments are not warranted. 10 o Proposed Floor Plan � 7R � KITCHEN D {~�Lf SiORME �� a.,l gRNCE STaTIp� Q O 0 o 1EVK O n'} New Floor Plan 'A-"m 1. Site Suitability: The subject property is fully developed and served by existing municipal infrastructure. The proposed Conditional Use Permit involves interior improvements only and does not alter the site layout, circulation, or building footprint. Adequate parking is provided with 57 on -site spaces, exceeding the minimum requirement of 48 spaces for the combined restaurant and accessory casino use. Site access from Highway 2 West remains unchanged. No conditions exist on or adjacent to the property that would impede the continued commercial use of the site. a. Adequate Useable Space: The existing building layout provides sufficient interior space to accommodate the proposed expansion of the segregated gaming area without requiring external modifications. The building includes appropriate space for restaurant operations, bar service, and the enclosed casino area, maintaining clear functional separation and compliance with zoning requirements. b. Height, bulk and location of the building: No exterior construction is proposed. The existing structure's height, massing, placement, and setbacks will remain unchanged 7 and are consistent with applicable B-2 (General Business) zoning standards. The interior remodel does not alter the physical character of the building or its relationship to adjacent commercial properties. C. Adequate Access The property is accessed directly from Highway 2 West via existing drive approaches, providing safe vehicle ingress and egress. Internal parking and circulation patterns remain unchanged, and the primary customer entrance is oriented toward the on -site parking lot. Although pedestrian access currently exists in portions of the corridor, the Highway 2 West frontage lacks a complete sidewalk connection. As part of this project, the applicant will be required to construct the missing sidewalk segment along the property's frontage to establish a continuous pedestrian link. Final design, alignment, and construction details will be reviewed during the building permit process to ensure compliance with City of Kalispell Public Works Standards. d. Environmental Constraints: There are no known environmental constraints, such as streams, floodplains, or wetlands on the area of the property proposed for development which could affect the proposed use. 2. Appropriate Design: The project does not propose any changes to the building's external footprint or structure. All proposed interior renovations will be reviewed under the City of Kalispell's adopted building codes to ensure compliance with life safety, accessibility, and energy efficiency standards. Interior improvements consist primarily of reconfiguring the existing floor plan to expand the segregated gaming area while maintaining restaurant and bar operations. All work will require the appropriate building permits and inspections. Parking, site circulation, and vehicular access will remain unchanged. The property provides 57 on - site parking stalls, exceeding the minimum requirement of 48 spaces for the combined restaurant and accessory casino use. Access to the site is from Highway 2 West via existing approaches, and no modifications to access points or circulation are proposed. While on -site circulation remains adequate, a sidewalk gap currently exists along the Highway 2 West frontage. As part of this CUP, the applicant will be required to construct the missing sidewalk segment to complete the pedestrian connection in accordance with City of Kalispell Public Works Standards. All utilities necessary to support the use —including domestic water, sanitary sewer, stormwater, refuse collection, electrical service, and natural gas —are existing and fully developed at the site. The City of Kalispell provides water, sewer, solid waste, and public safety services, while Flathead Electric Cooperative and NorthWestern Energy provide electricity and gas. Any required service modifications associated with interior improvements will be reviewed through standard development permitting. a. Parking Scheme/Loading Areas The subject property includes 57 on -site parking stalls, exceeding the 48-space minimum required for the existing restaurant and accessory casino use. Parking and circulation are already established and will remain unchanged. Existing loading and service areas are adequate to support current R operations and will not be altered as part of this application. The configuration provides sufficient on -site parking and delivery access consistent with B-2 (General Business) zoning standards. b. Lighting_ Chapter 27.26 of the Kalispell Zoning Ordinance establishes standards for all outdoor lighting on commercial and residential properties. Any exterior lighting installed in conjunction with this project will be required to comply with those standards. No new exterior lighting is proposed as part of this CUP. C. Access and Traffic Circulation: Access to the site remains from Highway 2 West via existing drive approaches that provide adequate ingress and egress. Internal parking circulation and site access will remain unchanged, and the primary customer entrance is located adjacent to the on -site parking lot. Interior layout modifications are limited to the expansion of the segregated gaming area and do not affect access, doorway locations, or internal traffic flow. Emergency egress routes will continue to comply with applicable building and fire codes and will be reviewed during the building permit process to ensure public safety. Although vehicular access remains sufficient, a sidewalk gap exists along the Highway 2 West frontage. To ensure continuous pedestrian connectivity along the commercial corridor, the applicant will be required to construct the missing sidewalk segment along the property's frontage in accordance with City of Kalispell Public Works Standards. Final alignment, design, and construction details will be reviewed through the building permit process. d. Open Space: There are no open space requirements associated with the property. The existing building and parking lot fully occupy the developed site, which is typical for commercial properties in the B-2 zoning district. e. Fencin _ Screenin _ andscaping: All existing screening and buffering measures will remain in place. No new landscaping or fencing is proposed or required for this project. f. Si�g_e: The existing exterior signage associated with the restaurant use is legally established and may remain in place as a grandfathered condition. The signage predates current restrictions on accessory casino advertising and does not require removal as part of this Conditional Use Permit. However, any future signage, replacement signage, or modification to existing signage will be required to comply with the current standards of Chapter 27.22 of the Kalispell Zoning Ordinance and is subject to review and approval by the Planning Department. In accordance with Section 27.34.040, accessory casinos may be limited from displaying exterior signage or architectural features that reference gaming, gambling, cards, dice, chance, or similar themes, or that draw attention to the casino component. Any new or revised signage must avoid gaming -related wording, imagery, or neon lighting intended to promote the casino, and must remain subordinate to the primary 9 restaurant use to maintain compatibility with surrounding commercial development along the Highway 2 West corridor. Those limitations would be appropriate in this situation to better fit within the surrounding area. g. Building Code: All interior renovations will comply with the City of Kalispell's adopted building codes, including requirements for life safety, accessibility, and energy efficiency. Necessary permits and inspections will be coordinated through the Building Department. 3. Availability of Public Services/Facilities: Several aspects of the property will remain unchanged under the Conditional Use Permit, including off-street parking and loading, refuse and garbage collection, screening and buffering, signage, yards and open spaces, storm drainage, and fire and police services. The property will continue to be served by City of Kalispell utilities, including water, sewer, refuse collection, police, and fire services. a. Police: Police protection will be provided by the Kalispell Police Department. The property is located within the department's regular patrol service area, and no unusual public safety impacts or elevated service demands are anticipated as a result of the continued restaurant and accessory casino use. Calls for service are expected to remain consistent with typical commercial activity along the Highway 2 West corridor. b. Fire Protection: Fire protection will be provided by the Kalispell Fire Department. The site is primarily served from Fire Station 61, with standard response times for this area of the city. The building is classified as an Assembly Group A-2 occupancy and must comply with all applicable fire code requirements, including fire alarm, suppression, and life -safety standards. Any interior modifications will require review and approval by the Fire Department during the building permit process. C. Water: Municipal water service is currently available and connected to the property. The existing service line is adequate to support the proposed commercial kitchen, dining area, restrooms, and fire protection systems d. Sewer: The site is connected to the City's sanitary sewer system. Wastewater demand from the proposed use will be comparable to similar restaurant/bar establishments in the downtown area and can be accommodated within the existing infrastructure. e. Storm Water Drainage: Since the proposed project does not involve any new impervious surfaces or expansions to the building or parking lot, there are no additional stormwater management requirements. Drainage patterns on the site will remain consistent with current conditions. f. Solid Waste: Solid waste collection and disposal will continue to be provided by the City of Kalispell. Commercial dumpsters and scheduled pickup services are available to meet the operational needs of the business. 10 g. Streets: Highway 2 West is a fully developed state highway corridor with existing curbing, access control, and traffic capacity. No off -site roadway improvements are required. The site has an established approach onto Highway 2 West that will continue to accommodate patron, employee, and delivery traffic. h. Sidewalks: A sidewalk exists along a portion of the Highway 2 West frontage; however, the sidewalk is not continuous. As part of the project, the applicant will be required to construct the missing sidewalk segment and complete the connection along the property's frontage in accordance with the City of Kalispell's development standards. Final design and alignment will be reviewed during the building permit process. Schools: The proposed project will not generate student population and therefore has no impact on local schools. Parks and Recreation: There are no impacts on city parks from the proposed use. 4. Neighborhood impacts: The proposed Conditional Use Permit involves interior improvements only and will not create adverse environmental impacts on the surrounding commercial corridor. Factors such as noise, lighting, dust, odors, fumes, vibration, glare, and heat are expected to remain consistent with existing operations. The surrounding area is already characterized by highway -oriented commercial uses, and the proposed casino expansion will not alter the site's external appearance or introduce new outdoor activity. Traffic: Traffic impacts resulting from the interior casino expansion are expected to be minimal. No change to access points or site circulation is proposed, and the existing approach onto Highway 2 West will remain in use. The proposed increase in casino floor area does not trigger a Traffic Impact Study, as no measurable increase in peak -hour trips is expected beyond the current established use. b. Noise and Vibration: All activities will occur inside the existing 5,582-square-foot building. No amplified outdoor music or exterior entertainment is proposed. Noise levels are expected to remain consistent with existing restaurant and casino operations and compatible with the surrounding commercial environment. No vibration impacts beyond those associated with current operations are anticipated. Dust. Glare, and Heat: As the project involves interior renovation only, there will be no construction -related dust beyond standard permitting practices. No excessive glare or heat is anticipated from the proposed use. All heating, ventilation, and lighting systems will be confined to the building and installed per city codes. 11 d. Smoke, Fumes, Gas, or Odors: The site contains an existing commercial kitchen, no changes to ventilation and filtration systems are proposed. While typical food preparation odors may occur, no significant off -site impacts from smoke, fumes, or gases are expected. e. Hours of Operation: The business will continue to operate under its established hours, opening from 11:00 a.m. to 12:30 a.m. on weekdays and from 10:00 a.m. to 12:30 a.m. on weekends. These hours are typical for restaurant and casino uses along the Highway 2 West commercial corridor and are not expected to create any additional impacts on surrounding properties. 5. Consideration of historical use patterns and recent changes: The property has been used as a restaurant and casino for many years, and the proposed interior expansion continues this established commercial use. The Highway 2 West corridor is characterized by long-standing commercial development, and the requested CUP is consistent with the historical pattern of restaurant, service, and entertainment uses in this area. The project represents a continuation of the site's existing use rather than a change in development intensity or character. 6. Effects on property values: No significant negative impacts on surrounding property values are anticipated. The proposed interior expansion remains compatible with the commercial nature of the corridor and does not introduce new external impacts. The project supports reinvestment in an existing commercial property, which can have a stabilizing or positive effect on surrounding values. 7. Impact on surrounding area: After considering the foregoing review criteria, it is found that the proposed use conforms to the requirements set forth in Chapter 27 of the Kalispell Zoning Ordinance. Furthermore, the application of generally applicable design standards and the conditions of approval provided for herein ensure that the proposed use of the property will have no more adverse effect on the health, safety, or comfort of persons living or working in the area and will be no more injurious, economically, or otherwise, to property or improvements in the surrounding area than would any use generally permitted in the district. RECOMMENDATION Staff recommends that the Kalispell City Planning Commission adopt Staff Report #KCU-25-06 as findings of fact and recommend to the Kalispell City Council that the Conditional Use Permit be approved, subject to the conditions of approval outlined below. 12 CONDITIONS OF APPROVAL 1. The approved activity must begin within 18 months from the date of authorization, or a continuous good -faith effort must be made to bring the project to completion. 2. The development and use of the site shall be in substantial conformance with the submitted application materials and approved floor plan. 3. The project shall comply with all applicable City of Kalispell zoning regulations, building codes, fire codes, and public works standards. 4. Any construction -related impacts, including dust, noise, or debris, must be mitigated in accordance with City of Kalispell requirements. 5. A building permit shall be obtained for all interior improvements, and final inspection must be completed and approved by the City of Kalispell Building Department prior to occupancy of the expanded casino area. 6. The accessory casino area shall be fully enclosed with permanent interior walls extending from floor to ceiling in compliance with Section 27.34.040 of the Kalispell Zoning Ordinance. 7. A standard, closable interior door shall be maintained as the sole point of access to the casino area to reinforce its subordinate and restricted nature. 8. Prior to issuance of a building permit, final floor plans shall be submitted to and approved by the City verifying compliance with casino regulations, including floor -area limitations, physical separation, and access -control requirements. 9. All signage shall comply with Chapter 27.22 of the Kalispell Zoning Ordinance. The existing legally established exterior signage may remain as a grandfathered condition; however, any new signage, replacement signage, or modification to existing signage shall not advertise or draw attention to the casino component, including gaming -related wording, imagery, symbols, neon lighting, or similar features intended to promote gambling activity. 10. The missing sidewalk segment along the Highway 2 West frontage shall be constructed to complete the pedestrian connection. Final design, alignment, and construction details shall comply with City of Kalispell Public Works Standards and will be reviewed during the building permit process. 11. The project shall comply with all applicable fire code requirements, including fire alarm and suppression standards for Assembly Group A-2 occupancy. Compliance shall be verified through the City of Kalispell Building Department and Fire Department prior to final inspection. 13 CITY OF Kalispell Zoning KALISPELL KCU-25-06 Fatt Boys RA-1/PUD Residential Apartment With Pud RA-1 Residential Apartment 6 93 Data Sources: Montana Cadastral, Flathead County GIs City of Kalispell GIs, Austin Bachurski - October 22, 2025 Subject Parcel B-2 General Business RA-1 Residential Apartment RA-1 Residential Apartment w/PUD N 0 75 150 300 450 Feet Basemap: Esri Community Maps, ArcGIS.com CITY OF Kalispell Growth Policy KALISPELL KCU-25-06 Fatt Boys Co Data Sources: Montana Cadastral, Flathead County GIs City of Kalispell GIs, Austin Bachurski - October 22, 2025 Subject Parcel Commercial High Density Residential Floodway Subj N 0 75 150 300 450 Feet Basemap: Esri Community Maps, ArcGIS.com Kalispell Mailing List �� Subject Parcel CITY OF 0 Mailing List Parcels KALISPELL KCU-25-06 Fatt Boys Other Parcels 7- 0 0 0 0 v 5 r 11717IM171 J`2 2 G ----- - ss --r Appleway Dr n Data Sources: Montana Cadastral, N 0 75 150 300 450 Flathead County GIs Feet City of Kalispell GIs, Basemap: Austin Bachurski - October 22, 2025 Esri Community Maps, ArCGIS.com