Zoning debate centers on future of downtown

A request to allow recreation guides and outfitting businesses to operate in the city’s secondary business zoning district quickly turned into a discussion last week about the future of retail business in downtown Whitefish.

Lakestream Outfitters has asked the city for a zoning text amendment that would add recreation guides and outfitters as an allowed use in the WB-2 zone. The business currently operates out of a shop on Central Avenue, which is zoned WB-3, but is looking to relocate to Spokane Avenue in the WB-2 zoning district.

Speaking in front of the Whitefish City Council on Aug. 1, Lakestream owner Justin Lawrence said it’s important for his business to have adequate parking for boats and display rafts for sale. Lakestream has grown from a small retail business into an outfitting business that only has about 25 percent of its sales in retail.

“There is no zone that accommodates outfitting businesses,” he said. “WB-2 is a great fit for parking and displays.”

Lakestream is looking to move into a building that was remodeled after most recently operating as The Shak restaurant.

The request quickly turned into a struggle between supporters who say the longtime Whitefish business needs a way to keep operating, and opponents who say the change could lead to an exit of businesses from downtown.

Council decided to table the request until its Aug. 15 meeting and asked planning staff to return with a proposal that would allow for guiding and outfitting services to be added to the WB-2 zone as a conditional use, which would require an outfitting business to obtain a conditional use permit from the city to operate in the WB-2 zone.

Councilor Frank Sweeney said the issue is challenging.

“We shouldn’t be doing this because of one business,” he said. “We do have a responsibility to create growth for our businesses.”

“It’s important to find a place for a business like this,” added Councilor Richard Hildner. “This isn’t about Lakestream, which is just the vehicle for this conversation.”

Guiding and outfitting businesses are considered “personal services” under city code and personal services are not listed in the allowed use of WB-2. The WB-2 district is described as intended for those retail sales and service operations that typically need large display or parking areas, large storage and by outdoor commercial amusement or recreational activities.

The proposed definition of recreational guides and outfitters are businesses offering licensed guides as well as equipment and supplies for sale or rent for specialty outdoor activities such as fishing or hunting. Retail sales related to the primary activity are allowed up to 30 percent of the gross floor area.

“Uses can change overtime in the zoning,” Planning Director Dave Taylor said. “The purpose of this use seems to fit with the intent of the WB-2 zone and the WB-2 seems like the best location for these businesses — certainly it wouldn’t be downtown.”

Councilor Jen Frandsen voiced her concern that a guiding business could have up to 30 percent of its building as a retail space. She pointed out that a business operating in a three-story building could have, as an example, a 30,000- to 45,000-square-foot footprint and therefore be allowed to have 15,000 square feet of retail.

“I appreciate the concerns about where do these businesses fit,” she said. “I need to keep an eye out for the larger community and keep an eye out for what we want theses businesses to be. There’s no specific requirement in our code that would keep chain businesses out.”

Supporters and opponents streamed to the podium to speak before Council.

Turner Askew said Lakestream doesn’t fit downtown and it needs an appropriate place to continue operating.

“I’ve watched someone from Lakestream stand in the middle of Central Avenue teaching clients to throw a fly,” he said.

“This may not [already] be in the zoning, but that’s what you’re here for,” he said.

Mike Jenson agreed that changing the zoning code is the right move to make.

“We need to define a place for this type of business to operate,” he said. “This will not be an end to our downtown — this will provide a place for this businesses to actually stay in our community.”

Christina Trieweiler Schmidt said businesses like Lakestream are a key piece of the tourism industry.

“If you allow businesses like this, it will fill those new hotels,” she said. “Business like Lakestream will expand the heart of Whitefish.”

Mayre Flowers, with Citizens for a Better Flathead, said the city’s growth policy calls for completing a corridor study for the area before making a change in the zoning code.

“I’m not saying outfitting businesses aren’t important,” she said. “But we need to be following the growth policy and making sure that is not just doing what’s good for one business. The problem is that the interpretation of this is open-ended for guides and it may open up this for other business. Whitefish has one of the most vibrant downtowns in the county because you’ve directed retail growth downtown.”

Chris Schustrom, with the Heart of Whitefish, said the change is an attempt to redefine the entire zone that could lead to a business like Cabela’s moving into the zone.

“It’s important to encourage businesses to stay, but you shouldn’t dismiss the zoning work that already been done,” he said.

Gary Stephens said the decision stretches beyond just one business and that keeping a strong downtown core is essential to the town’s vitality. He said Lakestream will find a way to operate in Whitefish if they want to keep their business here.

Several fishing guides, who work for Lakestream, talked about how the business has grown from a few guides to roughly 30.

Rick Adams, who owns Flathead Fish and Seafood and guides part time with Lakestream, said he knows from experience of running his own business that operating in Whitefish can be a challenge. He moved his business to Highway 40 because zoning in Whitefish wouldn’t accommodate it, he noted.

“Lakestream is a great business for the gateway to Whitefish,” he said.

Guide Drayton Osteen said it’s important to support businesses like Lakestream because the economic impact goes beyond the business itself.

“I’m an independent contractor,” he said. “This is about 27 different businesses and families being supported by Lakestream.”

Concerns were raised at the Planning Board meeting about the request being spot zoning.

City Attorney Angela Jacobs said because the change, if implemented, would apply to the entire zone, it’s not spot zoning.

“This would apply unilaterally in the zone so it’s not spot zoning,” she said. “This may be initiated by one business, but it would apply zone-wide.”