New commercial development surges in Whitefish

From the Highway 93 strip to downtown, signs of new commercial development in Whitefish are everywhere.

More than $22.5 million in valuation for commercial permits have been issued in the city through November, surpassing the 2014 total and ranking it as the highest year since 2005 — and there’s still one month to go.

Two new hotels that bookend town account for about $14 million of the total. But dozens of other, less obvious projects have added up to a banner year.

“It certainly appears that investors are bullish on Whitefish right now, and that development has bounced back to levels that match those of the boom years of the mid-2000s,” said Whitefish Chamber of Commerce executive director Kevin Gartland.

Gartland has seen investor confidence grow steadily in the last year or two. In fact, he said the Chamber has been contacted by more than a dozen different groups interested in hotel development.

“And we’re working with two more serious developers right now,” he said.

He points to a steady increase in property values, declining unemployment, the success Whitefish’s tourism-based economy and access to capital as factors driving the resurgence of development.

Among the most prominent commercial projects to break ground this year is a new 86-room hotel at the corner of Second Street and Spokane Avenue.

Local developer Sean Averill is a partner in the project. Like Gartland, he also chalks up the deluge of new commercial endeavors to the strong resort-based economy and better access to funding.

“Whitefish is being discovered — more people know about it or are just hearing about it,” Averill said.

“Credit markets are being opened up and developers are taking more risks,” Averill continued. “They’ve been sitting on the sideline for years and now we’re seeing more happen.”

Averill’s project comes after a decade of speculation about building a downtown hotel. Ultimately, it was his belief in the “economy and future of Whitefish” that gave Averill and his partners confidence to move forward.

“Longterm, we’re betting on the town,” he said.

Other notable projects to break ground this year include a $5.8 million Hampton Inn, a $1 million expansion of the Birth Center at North Valley Hospital, an expansion at the O’Shaughnessy Center, a new $1 million facility for Hurraw lip balm at Baker Commons, two new micro-distilleries, a new retail building in the Railway District, and $2 million in remodels at the Mountain Mall to make space for Shopko and Dollar Tree.

Whitefish planning director Dave Taylor doesn’t see any signs of new development slowing down.

“This year has been fairly dynamic and I think we’ll see that trend continue and perhaps be surpassed next year,” Taylor said.

Besides the new City Hall, the city planning department anticipates two new commercial office and condo structures on West Second Street, possibly a Marriott hotel near the Mountain Mall, new office buildings at Baker Commons, and a few other project where developers are “kicking the tires.”

Taylor warns that in a resort town, “everything is cyclic.”

“So it’s hard to know how long the trends will continue,” he said. “But right now, all property in Whitefish is a hot commodity. Vacant commercial lots are being snapped up for development left and right, and properties that are underdeveloped or dilapidated are getting ready for major makeovers.”

Averill has his hand on one of those makeovers. His next project is to renovate a commercial property across from the Whitefish Post Office.

“There is no sign of it slowing down right now,” Taylor said. “We have our hands full here at Building and Planning staying on top of it all.”