City council directs negotiations with Housing Whitefish amid legal concerns

The Whitefish City Council took a significant step forward in addressing housing needs during their meeting on July 7, 2025, by directing staff to negotiate with Housing Whitefish for a new project. However, concerns about legal challenges and financial implications loomed large over the discussions.

Council members expressed caution regarding the potential risks associated with the land involved in the project. One member emphasized the importance of gathering more information before committing to any agreements, highlighting the uncertainty surrounding insurance coverage for potential fines related to the land. "I just feel like it's a very serious, legal challenge that we might try to get more information before we impose this on Housing Whitefish," they stated.

Despite these concerns, the council agreed to move forward with negotiations, allowing staff to draft an agreement while awaiting further legal clarity. "We would not transfer land to Housing Whitefish if we thought that land was at risk," assured a council member, reinforcing the commitment to protect the interests of the city and its residents.

Another point of contention arose regarding the bidding process for the project. Some council members questioned why the city should not open the project to public bidding, suggesting that it would ensure transparency and fairness. "Why not go through the public bidding process?" one member asked, noting that Housing Whitefish would likely be the only bidder. Ultimately, the council voted 3 to 2 in favor of proceeding with negotiations without a public bidding requirement.

As the council navigates these complex issues, the outcome of the negotiations with Housing Whitefish will be crucial in determining the future of affordable housing in the area. The council plans to revisit the matter once more information is available, ensuring that all legal and financial considerations are thoroughly addressed before any final decisions are made.