City officials from Kalispell, Whitefish and Columbia Falls said at the Kalispell Chamber of Commerce Growth Summit that growth in the Flathead Valley continues to slow following the pandemic-induced surge in 2021, and development and tourism demand are slowing. He said it has leveled off.
Municipal managers and planners say the number of building permits issued has fallen significantly from its peak three years ago, even though housing and transportation remain top priorities. Ta.
In Kalispell, development services director Jarrod Nygren said more than 1,000 new homes have been built in the past few years, and while interest in multifamily development has begun to wane, single-family permits are making a comeback. Ta. Sewer and water infrastructure also continues to grow with new development, including projects such as the West Side Interceptor and a new water tower being built on U.S. Highway 93 North.
“In fact, our growth is very much in line with our facility plan, which projected annual growth of about 2.5%, despite the big boom of the last few years,” Nygren said.
In Whitefish, building permit growth has also slowed amid persistently high interest rates, creating barriers to new development. City Manager Dana Smith said she expects this trend to continue over the next few years as buildings shrink in size.
Tourism in Whitefish has also slowed compared to its peak in 2021, Smith said, and that's reflected in resort tax revenue as well as anecdotes.
Meanwhile, Columbia Falls City Manager Susan Nicosia said growth has dropped significantly since the peak of the pandemic, with only two permits issued for single-family homes in the previous year, including one for a home that burned down. He said that it was a reconstruction.
“Growth is much slower than we expected. We were planning for a 2.5% growth rate,” Nicosia said. “The last census was about 1.3%. So because of the significant slowdown, our water and wastewater infrastructure and transportation plans align very well with growth.”
While housing development is a top priority for local government, city officials are working with Flathead County to build on the current public transportation system of Mountain Climber commuter buses. The bus does not currently provide transportation between Kalispell, Whitefish and Columbia Falls, but officials say the service is needed.
“Enabling commuting between all cities and taking cars off the roads would eliminate traffic jams and other congestion, improve airports, and allow visitors to reach their destinations without paying extra. 'Another car went onto the road,''' Smith said.
“Transportation is really breaking down at the regional level between cities and counties, especially given the demographics,” Nygren added.
City officials emphasized the importance of working with county officials, who were not on the panel, to address transportation and housing issues, since the county's population exceeds that of the city, which makes up one-third of Flathead County. .
Nygren said the large number of individual septic tanks poses a challenge for the Flathead Valley, making it difficult to deal with pollutants.
“Septic sprawl is probably one of the biggest concerns for this valley, given its location at the headwaters of Flathead Lake,” Nygren said.
Local governments also expressed frustration over Senate Bill 382, a housing reform bill passed in the 2023 legislative session and currently before the courts.
Under the Montana Land Use Planning Act, local governments must prioritize resident participation and comment when creating or updating growth policies, and once policies are adopted, site-specific development decisions must be made at the city staff level. A review will be carried out.
“That's what we're actually doing with the growth policy update at this point, because it's still considered to be in place, and through Senate Bill 382, public participation in the project will take place. “That's going to change the way we do growth policy, not at the actual applicant or approval stage, but at the growth policy stage,” Smith said.
City officials say they are unhappy with the bill because it removes local control from public processes and creates challenges for each city with unique needs. ing.
“A top-down approach doesn't work,” Smith said.
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