Bonds, resort tax hike considered for Haskill land deal

Nearly $8 million still needs to be raised to finalize a land deal that would permanently protect the Haskill Basin watershed. Options for securing those funds were the center of discussion at a June 17 open house hosted by the city of Whitefish and other partners in the proposed deal.

Whitefish Mayor John Muhlfeld said the city is still uncertain how it will make up the $8 million balance, but said it is working to create a plan to generate both public and private funds.

The proposed project would permanently protect more than 3,000 acres of working forestland in Haskill Basin that is the source for most of Whitefish’s water supply through a deal between The Trust for Public Land and F.H. Stoltze Land & Lumber Company. The Trust for Public Land has secured an option to purchase the development rights from Stoltze through the end of 2015.

The land purchase is expected to cost $20.6 million, however Stoltze has agreed to contribute $4 million to the project. The Forest Service is expected to provide a grant of $7 million, while U.S. Fish and Wildlife is expected to provide $2 million in grants.

“With projects being funded from top to bottom, this is pretty much an assured amount of money,” said TPL spokesperson Alex Diekmann.

This will leave between $7 and 8 million remaining for the community to generate.

Muhlfeld said the public aspect of raising the funds would most likely be generated through bonds, fees and taxes.

According to the Mayor, the city could consider a general obligation bond, where state or local government uses legally available resources, like tax revenue, to pay the bond. This could include a water revenue bond, which would use the income generated from water tax and fees to pay the bonds.

“In either one of those, there will be vast public input and approval required,” Muhlfeld said.

The city also could consider raising its 2 percent resort tax that is collected on lodging, retail, bars and restaurants. The tax could be raised and reappropriated through a vote.

Both Muhlfeld and city manager Chuck Stearns declined to comment on the specifics of a bond or resort tax hike.

“We are very preliminarily into that evaluation,” Muhlfeld said. “But when it does become available, we will share it with the public, probably later this summer.”

Whitefish Legacy Partners is another major player in the easement. Part of the deal will include permanent paths for hiking, biking and Nordic skiing as a continuation of the Whitefish Trail, which Legacy Partners would maintain. The group hopes to privately raise around $3 million to contribute to the $8 million goal.

As the 3,000 acres of land is home to 75 percent of the city’s water supply, TPL and the city want the land to stay clear of development that could damage the watershed.

While Stoltze has always offered their land for recreating, without the land deal, there is no guarantee the company won’t sell the plot. In the past, they have sold 1,200 acres to developments such as Iron Horse and Lookout Ridge.

With the proposed easement, the land would remain free from development permanently and stay open for recreation such as hunting, fishing, biking and hiking.

“We’re going to hear everyone’s voice and address everyone’s concerns the best we can,” said Diekmann, “but the property will still be owned by Stoltze. It’s going to be a balancing act.”

Because of this, Stoltze also voiced their concerns at the open house. Stoltze lands and resource manager Paul McKenzie said Stoltze needs to evaluate the risk associated with allowing permanent public access, including fire hazards and any mistreatment of the property that could happen.

Local residents also expressed concerns during the open house.

“We’re worried about what will happen when that area becomes more popular,” said Richard Gehri, who lives off Haskill Creek Road. The road runs next to Haskill Basin, and Gehri and his neighbors are worried about increased traffic.

“Who’s going to maintain those dirt roads when they’re getting so much use?” Gehri asked after the open house. Right now, Gehri and the five other homes that reside along Haskill Creek Road maintain the area, be it plowing snow or fixing potholes. The residents plan to bring up these concerns again once the deal becomes solidified.

The purchase is scheduled for completion by the end of 2015.