City waives impact fees for the Wave

The Wave fitness center will be reimbursed some of the impact fees it was required to pay the city as a result of its current expansion.

The Whitefish City Council voted 4-2 on Aug. 5 to refund impact fees at a cost of $11,600, but not building permit fees in the amount of $14,000. Councilors Frank Sweeney and John Anderson voted against the motion.

The Wave board contacted the city requesting that the fees be reimbursed. The board felt that the intent of its 2004 agreement with the city was that all building permit and impact fees would be waived, not just for the initial construction of the original facility.

“This waiver of fees still applies,” Wave board member Bart Erickson said. “The city owns the building and we’re adding value to the facility. We are required to maintain the building for the benefit of the public. I know there is concern about precedent, but you have no other agreement with another nonprofit that does what we do.”

Erickson pointed to the roughly 5,000 members and the 95 people it employs as being assets to the community.

The Wave is adding 9,200 square feet to the southwest of its building. The expansion area will include a reorganization of the locker rooms, a larger daycare center, an additional party room and another aerobic room. The expansion also includes two additional family change rooms.

Prior to the vote, Sweeney suggested that the city reimburse The Wave for both sets of fees.

“This is a privately funded facility that was given to the city,” he said. “I have no problem with waiving the impact and building fees. This is a pretty rare circumstance when a a building created with private funds is given to the city.”

Council recently approved reimbursing North Valley Food Bank for its impact fees only and not for the building permit for the new distribution facility it is constructing. The city has, in the past, agreed to pay for the impact fees of various private buildings with the idea that new development provides a good return on investment to the city.

Some councilors worried that by reimbursing the cost of the building permit fees, the city would be setting a precedent.

“There needs to be sideboards for how the city deals with these fees,” councilor Bill Kahle said. “We should support The Wave, but we have to be careful about setting a precedent for future requests.”

The reimbursement will come from the tax increment financing fund.