Lip balm company denied use of school building

The Whitefish Independent High School building on Park Avenue has housed a plethora of businesses and organizations over the past 60 years. It’s been used as a church, a physician’s office, a day care and now a school, to name a few.

The next life for the 1950s modern brick building remains up in the air. One thing it likely won’t be is headquarters for a local vegan lip balm manufacturer that’s looking to expand its business.

Whitefish City Council on Monday voted 4-1 to deny a conditional use permit to allow Hurraw! lip balm to operate their light manufacturing business in the space. Frank Sweeney was in opposition and John Anderson abstained.

The building is currently zoned as high density multi-family residential. Under that zoning, Hurraw! could obtain a CUP, but would be required to operate as a home-based business and include a residence in the building. Otherwise, Hurraw! would be considered light manufacturing, which isn’t permitted in the multi-family residential zone.

Hurraw! owners Neil Stuber and Corrie Colbert had signed an offer to purchase the building from Whitefish School District contingent upon the company obtaining a CUP to operate at the location.

Stuber told city council on Monday he had no intentions of using the building as a residence. Even if the CUP was approved, operating as a home-based business wouldn’t work financially due to a significant increase in their insurance and freight.

“We have no intentions of having someone live at the facility,” he said. “I guess I could take a couple naps there. But the biggest issue is that it says home occupation on the CUP and where that leaves us with insurance and freight charges. It’s a dollar thing.”

“The building is awesome. It feels like an industrial space. But I’m not sure if there is a way to get around the zoning.”

City planner Wendy Compton-Ring noted that the lip balm business would likely have less impact to the neighborhood than the school does now, but said the zoning rules make it difficult. A rezone would be inappropriate because its in the middle of a residential area, she said, which would be considered spot zoning.

City attorney Mary Van Buskirk said the conundrum was “very problematic” from a legal stance.

“It’s not a good fit for this zoning,” she said. “Our regulations say there must be a residential component. The applicant states there will be no residential use. So I think it’s problematic.”

Neighbor John Ellis asked council to deny the CUP. He said the city was attempting to maneuver around its zoning rules.

“If you let it become industrial, you devalue the property next to it,” Ellis said. “It may take the school a while longer to sell [the building,] but it’s worth it to keep the neighborhood not industrial.”

A number of residents spoke in favor of allowing Hurraw! to operate in the building, although they couldn’t offer a solution that worked with the current zoning.

“They will provide jobs and diversify our tourism-based economy,” said Jan Metzmaker.

Councilor Phil Mitchell said that while he wanted to bring more business to town, he was uncomfortable with stretching the rules.

“I don’t see a tool to pass this,” he said.

Chris Hyatt said the industrial use was a change to the neighborhood he wasn’t excited about.

“I’m in support of what you’re doing as a business,” Hyatt said. “But I wish you were in Baker Commons because that’s where I think your business belongs.”

Hyatt was referring to a previous proposal by Hurraw! to construct a facility in Baker Commons near the city’s Emergency Services Center.

Stuber told the city that building at Baker Commons became too expensive due to design changes requested by the city’s Architectural Review Committee.

“Our design for Baker was for 3,000 feet and to be modular,” Stuber said. “The Architectural Review Committee was not a big fan of the more modern look.”

He estimated the ARC’s changes bumped building costs up $175,000.

“The cost benefit wasn’t there,” Stuber said.

Bill Kahle said he hopes Hurraw! finds a way to stay in Whitefish.

“I wish you the best of luck,” he said. “But our hands are tied up here.”

The school district will continue its search for a buyer of the building and adjacent property, real estate agent Garth Boksich said.