Mayor Muhlfeld addresses state of the city

Whitefish mayor John Muhlfeld is quick to acknowledge the full plate of issues facing the city as he settles into the final year of his first term.

There’s the controversial proposal for a resort tax hike, an ongoing City Hall project that won’t stay off the opinion page, new corridor plans that will shape future land uses in town, resounding calls for a non-discrimination law, and signs of a re-emerging building boom, to name just a few.

Two recent city council meetings have gone until midnight, with deep agendas and vibrant public comment the norm — a true thermometer of the city’s current political temperature.

“Things are hopping,” Muhlfeld said. “[Late meetings] used to be par for the course when I got on council in 2006. Every meeting was like that.”

With a full docket of challenges left to tackle, Muhlfeld says he isn’t inclined to walk away from his post as mayor at the end of the year. In fact, he’s already planning his run for re-election, having named Lin Akey as his campaign treasurer.

“A lot of this stuff is ongoing and I don’t want to step down before it’s put to bed,” he said.

Muhlfeld gave his candid and in depth take on some of those ongoing issues and challenges facing the city when he sat down with the Pilot last week for an extended interview from his home overlooking City Beach.

Haskill Basin

The top headline-grabbing issue of the moment is a proposed conservation easement in Haskill Basin. In a special election this April, city voters will decide whether a 1 percent increase in the resort tax should be used to raise $8 million to help fund the project. The city also could ask voters to approve a general obligation bond or raise water rates.

The city is touting the land deal as a way to protect the Haskill watershed, which is the primary source of Whitefish’s drinking water.

Muhlfeld firmly believes a resort tax increase is the correct funding mechanism to back the project.

“To have our 5,200 water users in town shoulder the burden of this important and necessary project isn’t the most equitable way to go,” he said. “We have over 500,000 people a year that come to our town and require drinking water, as well. It’s the most equitable way to spread the burden — hands down.”

“I talk to a lot of seniors on a fixed-income and social security. To add $80 to their tax bill every year in terms of a water rate increase — we need to take care of our senior citizens and folks on a fixed income. It would disproportionately hit those individuals very hard and I’m very sensitive to that.”

Numerous businesses have spoken out against a resort tax hike, saying it will push shoppers out of town and hurt their bottom line. Muhlfeld says the city can counter those concerns with an aggressive shop local campaign.

“We’re going to try to market our retail and downtown businesses as a place that people want to come and spend their money to support the types of values this conservation easement is going toward,” he said. “We want this to be a win-win for the entire community.”

Muhlfeld calls the deal a “once in a lifetime opportunity” to protect the city’s water — which he argues is the primary reason to fund the project — although he readily admits there are “ancillary benefits” such as protecting viewsheds, connective landscapes and opportunity for recreation.

“We’ve seen over the years how embracing those values has helped catalyze our economy, starting with the Whitefish Trail project,” he said.

He believes there is broad support to back the easement, and points to a public poll conducted by Trust for Public Land that shows the majority of voters — 57 percent — offered initial support to increase the resort tax to pay for the easement.

“I talk to people on a daily basis and haven’t heard one negative comment regarding the need to do this for our community,” he said.

Muhlfeld looks at the entire 3,000 acre easement as a “watershed-scale” project that will benefit from F.H. Stolze Land and Lumber keeping a working presence in the forest.

“We’re trying to in perpetuity make sure these lands stay managed to mitigate the risk of wildfire, which would be devastating to our water supply,” he said. “Everything we can do [to protect] not only the areas immediately contributing to our water supply, but the watershed area that encompasses those lands, makes a lot of sense.”

“The other thing people don’t understand is that people assume we have rights to access, maintain, operate and deliver water from their land, and we don’t. Part of this deal will be codifying those rights.”

“Look at what Missoula is facing in trying to purchase their water rights for $100 million from a hedge fund. I’m trying to look forward 50 years and not have the regrets of not doing this project. It’s a once in a lifetime opportunity and something we have to get done. It’s that simple.”

City Hall

Muhlfeld says it’s time for City Council to make a decision on the design of a new City Hall, and to do so with fiscal responsibility.

“I’m ready for the council to make a decision and select a design,” he said.

A three-story City Hall building with a full basement, parking structure and retail space is estimated to cost $14.6 million. The city proposes to fund the project with resort tax increment funds.

Muhlfeld says council needs to bring the total cost down by about $2 million.

“I would encourage we keep this cost on the low end of the range,” he said. “We simply can’t afford the option that would increase the cost to $14.6 million, to speak frankly. There will be other TIF priorities that come up between now and 2020 that we need to be prepared to help fund.”

“I’ve advocated for that since this process started.”

“With fiscal restraint, we can still build a building that is attractive, timeless, historic and really adds to our downtown.”

He stands behind plans to build a parking structure and says a retail component in the design is “integral.”

With the city’s tax increment finance funds set to sunset in 2020, it’s getting close to crunch time for deciding where those dollars should be spent. Muhlfeld says with proper fiscal restraint on City Hall, enough money should be left to fund other projects.

He names his top tax increment priorities as assisting with redevelopment of the former Idaho Timber and North Valley Hospital properties.

Planning

The city currently is tackling both an update to the downtown master plan and crafting a corridor plan for U.S. 93 West. Both documents continue to be under review and will go before city council this year.

Muhlfeld is pleased with the latest update to the downtown plan and says it does a lot to balance commercial expansion while protecting residential neighborhoods.

“I’m not interested in compromising residential neighborhoods for the sake of expanding retail,” he said, bluntly.

He is eager to wrap up the downtown update — a process that has taken years and cost the city nearly $200,000 in tax increment funds — so the city can turn its attention to other corridors, like Wisconsin Avenue and U.S. 93 South.

“What’s most important is that [the downtown plan update} sets the stage for what happens on the highway corridors,” he said. “We’ve been slow to respond to Wisconsin Avenue. We need to make sure we have a solid land use plan in place… so we’re not left with a hodgepodge of zoning.”

Council is set to hold a work session on the proposed Highway 93 West plan. Muhlfeld calls the document a good first draft that needs tweaking. Precisely, he doesn’t agree with the proposal to eliminate industrial zoning for the former Idaho Timber property on the north side of the highway.

“We don’t have a lot of available industrial properties in Whitefish,” he said. “When you think about economic development and creating good paying jobs that can support families — it is industry. It’s those types of industries that Whitefish needs to attract in order to stay diverse and vibrant and not depend solely on tourism.”

Economy

All of the economic indicators are pointing toward a local economy that is humming along at a good clip, Muhlfeld said. He notes a rise in planning and building permits, strong real estate sales and growing resort tax revenues.

“When you look at those indicators, it all points to increasing economic activity in our town and I hope that continues,” he said.

“We haven’t seen a subdivision since the Great Recession set in and just recently we approved two major subdivisions in Tamarack Ridge and East Second Street. And we’re anticipating more subdivision activity coming down the pipeline.”

A big issue he hopes to tackle is the lack of affordable and workforce housing.

“People can’t find affordable housing in this town,” he said. “That’s forcing a lot of our workforce labor out of Whitefish.”

He says the community would be wise to embrace affordable housing projects when presented by developers.

“We need to take a strong look at those opportunities and do everything we can to encourage those developments,” he said. “I’m not saying to the sacrifice of the adjacent neighbors or zoning, but we need to do everything we can as a city to encourage that type of growth.”

County relationship

It’s been eight months since the Montana Supreme Court ruled in favor of Flathead County in the ongoing planning “doughnut” saga.

Despite the outcome, Muhlfeld says he’s relieved the lawsuit is over.

“It caused a lot of bad blood between city and county. I’m excited to just have the good council we have and the good planning and city staff to be able to focus just on Whitefish.”

Still, it’s evident the wounds of the drawn out lawsuit have yet to totally heal. Muhlfeld says there is still no active dialogue between the city and county.

“Which is rather unfortunate,” Muhlfeld said. “I think we’re still rebounding from the Supreme Court decision, but at some point we need to find ways to work more cooperatively.”

He is sharp in his tone when talking about the county’s plans for lakeshore regulations and zoning directly outside city limits.

“The county has written the city off,” he said. “They’re doing everything they can to give us the you know what.”

“As they start dinking with the zoning out there... state law is pretty clear they need to comply with the adopted growth policies and land use plans of incorporated municipalities.”

Re-election

“I’m sure I’ll be contested, which is fine,” Muhlfeld said about running for a second term as mayor. “It will be another spirited election.”

“I’ve worked hard over the last 3 1/2 years to try to calm the waters in town, and I think we’ve been successful in doing that. I would really love to see the next four years follow suit.”

He says he’s proud of the council’s work in making tough decisions on important issues.

“We have a good council, there’s been a lot put on our plates,” he said. “I ask the residents to participate in their government and respect the decisions we do have to make. Often times they are difficult decisions that affect real people.”