Lookout Ridge plat extended for two years

A critical two-year plat extension for the faltering Lookout Ridge subdivision was approved last week despite lingering questions about soil stability and who will take eventual ownership of the 267-acre private development north of Iron Horse.

Whitefish City Council voted 5-1 on Nov. 18 to approve the plat extension with John Anderson in opposition.

Whitefish Credit Union, on behalf of Lookout Ridge Investors, asked the city for the extension, which will expire June 15, 2015. WCU has been acting as an agent to the investors while final ownership of the property remains in litigation.

Even though WCU is not the current property owner, they are continuing, in good faith, to work toward final plat, city planner Wendy Compton-Ring noted in a staff report.

“Financial institutions do not typically assume the role of developer, but are more likely to sell an entitled development to someone that will fulfill the conditions of the project,” Compton-Ring said. “While [WCU] is looking to obtain permission from the developer to be the local contact and provide some minor improvements, the major work will be done by some future property owner.”

In June, council voted in favor of extending the plat for up to six months, allowing time for WCU to reexamine the stability of soils in the subdivision. Councilors expressed concerns after a massive landslide in 2011 scratched a 1,000 foot scar into a hillside on Lookout Ridge.

Representing WCU, attorney Sean Frampton told council that a recent study shows the landslide was a natural event and that there’s been no exacerbation of the slide.

A report by Applied Water Consulting showed saturated soils associated with a wetland area at Lookout Ridge was triggered after an intense rain on snow event.

Anderson asked Frampton who would be responsible for cleanup should another landslide occur before final ownership of the property is determined.

“I’m having a real problem knowing who’s in the chair if an event occurs again,” he said. “Let’s say there’s another slide up there and it takes out a house. Are you willing to step into the shoes of the developer and take on those costs?”

Frampton said Lookout Ridge Investors technically remains the legal developer while WCU works to assume control. He explained a complicated lawsuit involving 23 parties, including F.H. Stoltze Land and Lumber, that has slowed the process.

“We’ve been dealing with legal issues for months,” Frampton said. “We’ve tried hard to settle this.”

He said the credit union has been acting in good faith to move the development along while the legal process plays out.

“We’ve demonstrated we’ve addressed every problem,” Frampton said. “We’ve looked at the slide.”

In a letter of support, Whitefish landscape architect Bruce Boody said denying the plat extension benefits no one.

“The current site conditions are a result of unfortunate circumstances,” Boody said. “These site conditions can best be addressed by making it possible for a new owner to take over the project and develop the property with a remedy to the slide and the project as a whole.”

In motioning to approve the plat extension, Phil Mitchell said WCU has shown they’ve done their due diligence.

“WCU is trying to oversee the project as much as they can,” Mitchell said. “They have an extremely good record. Their goal is to try and make something good of this.”

Frank Sweeney said that while he shares concerns about soil stability, he sees no benefit in denying the plat extension.

“Our concern is what happens if there are problems on Lookout Ridge,” he said. “By not approving the plat, we do nothing that gives us assurance someone will be there to respond.”

Mayor John Muhlfeld previously said a site evaluation revealed an access road to Lookout Ridge wasn’t constructed up to standard. He said it lacked surface drainage and there is water loading on nearby slopes.

At last week’s council meeting he strongly encouraged WCU, or whoever becomes the eventual property owner, to look closely at the soil stability issues.

“The downslope problems are real,” Muhlfeld said.

A preliminary plat for Lookout Ridge was approved in 2007. The proposed development includes 75 lots and 131 units.