Whitefish City Council initiates negotiations for Depot Park townhomes with Housing Whitefish

In the heart of Whitefish, city council members gathered on July 7, 2025, to address a pressing issue that has lingered for years—the completion of the Depot Park Townhomes project. This initiative, aimed at providing affordable housing, has faced numerous hurdles since its inception, and the council is now considering a pivotal shift in its management.

The Depot Park Townhomes project, initially transferred to the Whitefish Housing Authority in June 2020, has encountered significant challenges, including rising construction costs and legal complications stemming from a recent $1.5 million jury verdict against the authority. As the council discussed the future of the project, it became clear that the timeline for completion is at risk, with a deadline set for May 2027.

City officials proposed transferring the project back to Housing Whitefish, a local organization better positioned to navigate the complexities of development. This proposal aims to utilize the remaining funds—approximately $983,000 of the $2.9 million allocated—to ensure the project reaches completion. The council is set to negotiate a new development agreement, which would allow Housing Whitefish to take the reins without the encumbrance of the legal judgment against the Housing Authority.

However, the meeting was not without contention. Some council members expressed concerns about bypassing a formal Request for Proposals (RFP) process, fearing that it might limit competition and potentially lead to higher costs. Others argued that the urgency of the project necessitated a swift decision, emphasizing that the groundwork has already been laid, and delaying further could exacerbate financial losses.

The discussion also highlighted the broader implications of affordable housing in Whitefish, where costs have escalated dramatically over the past five years. Council members debated the feasibility of increasing density on the site to enhance affordability, but acknowledged the challenges posed by previous community agreements on design.

As the council deliberated, the weight of the past five years hung heavily in the air. With millions already invested and a community eager for solutions, the urgency to finalize a path forward was palpable. The council ultimately moved to direct the city manager to negotiate with Housing Whitefish, with the understanding that any agreement would return for further review.

The outcome of this meeting marks a critical juncture for the Depot Park Townhomes project and the future of affordable housing in Whitefish. As the city navigates these complex waters, the hope remains that a collaborative approach will lead to a successful resolution, bringing much-needed housing to the community.