Downtown development on the horizon

By RICHARD HANNERS

Whitefish Pilot

Work at the former Truby's restaurant site and the vacant site next to Craggy Range in downtown Whitefish could begin this fall, according to a developer who's moved here from Arizona.

Tom Donahue said demolition of the former restaurant could take place this fall after the tourist season ends. Plans call for a two-story building with a family restaurant at ground-level and professional offices upstairs.

He said his company, International Capital Partners, had trouble locating office space for sale here and will probably set up business in the new building. He says it's important for his employees to be able to walk to downtown businesses and avoid driving.

Work on the four lots next to Craggy Range will likely follow a similar time frame, he said. Plans call for a "boutique hotel" with 40-60 rooms, as slated in the Downtown Master Plan. Rooms will likely be medium-priced.

Traffic congestion and parking are big concerns of Donahue. He said he supports building a parking structure at Spokane Avenue and Second Street and has spoken to city manager Gary Marks about his ideas.

One idea his company's architects have worked on places affordable housing units around the parking area. The design provides parking, improves the look of the structure and provides what he calls "work-force housing." He said the plans were offered to the city as a public service.

With a bachelor's in real estate finance from the University of Southern California, Donahue's real estate career began in Southern California in 1985, where he supervised large commercial and industrial real estate projects for clients that included Fortune 500 companies.

Donahue is International Capital Partners' chairman. He founded ICP as a successor to AzCal Real Estate Investment Corporation, which he also founded.

ICP is a privately-held real estate company with about 120 employees and offices around the world, including Scottsdale, Ariz., Denver, Austin, New York and London.

According to their Web site, ICP's "investment discipline seeks commercial properties less than 20 years old, ranging in size from 25,000 to 150,000 square feet and priced below replacement cost."

"Properties should also provide adequate parking," the company notes.

Besides developing real estate projects, ICP helps individuals diversify their investment portfolios. In his recent travels around the world, Donahue has looked for ways to help private investors in the United Kingdom get into the U.S. real estate market.

Donahue moved to Scottsdale from California in the early 1990s. In an April 2006 column in the Arizona Republic, he described the tremendous growth he witnessed there — including nearly $1.5 billion invested or targeted to downtown development since 2003 and another $1 billion in south Scottsdale.

"Now it's up to all of us in Scottsdale — especially those of us in the real estate industry — to safeguard the city's character and amenities in the midst of the major changes," he wrote. "Scottsdale was great in 1990, it's great in 2006, and I want my children to think it's great in 2026."

According to the Business Journal of Phoenix, Donahue "operates on 20 percent to 25 percent less profit because he and his companies espouse green construction." He is also a "major fan" of Bono, the singer for the rock band U2 who mixes global philanthropy with music, the Journal reported.

Now Donahue and his family live in Whitefish. He told the Pilot he has been coming to Whitefish for summer and winter holidays for several years. His two boys will attend school here and are currently active in local sports — something Donahue actively supported in Scottsdale.

"Our Whitefish projects are personal to me — not so much ICP," he said. "Typically we do projects where I live."

Donahue said he's concerned about maintaining the integrity of the Whitefish community, citing the example of Hines involvement at Whitefish Mountain Resort as something he wants to avoid.

He also brings with him lessons from Scottsdale. The lack of foresight by Scottsdale's city government led to urban sprawl, he said.

"That would be a sad thing to see happen here, with all the beauty of this area," he said.

Donahue said he wants to be up front with the Whitefish community. While change is inevitable, it doesn't have to involve big, sweeping changes.

"The last thing I want to do is bring Scottsdale here," he said. "I left Scottsdale for the simple lifestyle. There are no fur coats running around here like you see in Aspen or Vail. Whitefish is becoming home for us."