R ec trail land swap details 'memorialized'

Silicon Valley entrepreneur Michael Goguen will donate $3.1 million total

By RICHARD HANNERS / Whitefish Pilot

An agreement between Silicon Valley-investor Michael Goguen and the city of Whitefish was formally approved by the Whitefish City Council on Monday.

Funding from Goguen that is contingent on a pending land swap between him and the state is considered a key element in developing the A Trail Runs Through It project.

The agreement came to the city from Flathead Gateway Partners at the last minute and was not on the council's agenda. Whitefish resident Steve Thompson is the president of the nonprofit organization which is promoting the 80-mile long recreation trail that will one day circle Whitefish Lake.

Goguen, who owns about 1,000 acres on the east and south side of Beaver Lake, wants to consolidate and improve his holdings by taking ownership of 435 acres of adjacent school trust land south of the lake.

When first announced in August 2006, Goguen offered to trade a 570-acre parcel on U.S. Highway 93 at Lupfer Road and place the 435-acre parcel under the terms of a conservation easement, as outlined in the Whitefish Area Trust Lands Neighborhood Plan.

Since then, two more properties were added to his offer — a commercial site at 140 Lupfer Avenue, in Whitefish's Historical Railroad District, and a 30-acre parcel on U.S. 93 just west of Twin Bridges Road.

Goguen also offered to pay some trail-building costs for the A Trail Runs Through It project. His land swap proposition goes before the Montana State Land Board on Dec. 15, and city attorney John Phelps told the council it was a good idea to formalize the agreements between Goguen and the city, which has assumed the position of "landlord" for the recreation trail.

Before city officials take off for Helena to act as "cheerleaders" for the land swap, Phelps said, it was important to get all the commitments written down in a concrete document.

The agreement states:

? Goguen will "take such steps as necessary" to place an easement across portions of his existing land and the 440-acre parcel he wants to acquire for a three-mile public trail to be built from Two Bear Road to Beaver Lake Road.

? At the close of the land exchange, Goguen will donate $3 million to the city for trail construction and maintenance, purchase of easements for trail corridors and for conservation.

? Goguen agrees that the $100,000 he has already donated to the city for trail work is in addition to the $3 million donation.

? Flathead Gateway Partners, which also signed the agreement, will continue to work with the city to implement the trail.

? A tax-exempt foundation will be established handle these funds. Until then, the existing Steering Committee will try to leverage the funds for trail and conservation objectives.

? By Dec. 31, 2009, the Steering Committee or another appropriate entity will apply for easements to establish permanent trail corridors. At least $1 million of the Goguen donation must go toward these acquisitions by that time.

In June, Stillwater State Forest unit manager Brian Manning said the 440-acre parcel had been appraised at more than $6 million, and the total package came out about $280,000 short. Manning said a public MEPA process on the land exchange was underway.

Whitefish attorney Diane Conradi, who is representing Goguen, said at the time that Manning was referring to "as-is" prices. Additional surveying and boundary-line adjustment work showed that three home sites on the 570-acre parcel will increase the parcel's value and more than make up for the shortfall, Conradi said.