Council approves Kemosabe liquor-permit request for 20 Spokane Avenue after narrow vote

The Whitefish City Council voted 3–2 on Sept. 2 to approve a conditional‑use permit allowing Kettle Mountain LLC’s Kemosabe retail space at 20 Spokane Avenue to operate with a full liquor license. The council approved staff’s recommended conditions for the permit after public testimony from the applicant and debate among council members.

Why it matters: The decision changes the regulatory status of a downtown commercial unit adjacent to Whitefish Middle School and establishes a precedent for an all‑beverage license on a block that previously had only beer‑and‑wine sales and other retail uses.

Planning staff told the council Kemosabe’s proposed bar/lounge requires a new CUP because the site’s current approval — a 2019 CUP that allowed a winery at the address — was specific to that use and does not automatically allow a full liquor bar. Lauren (planning staff) said the property is zoned WB‑3 (general business), the application met the zoning standards with conditions, and state law’s 600‑foot school/church licensing prohibition did not apply under the state’s three‑part test because the school’s address differs from the store’s street designation.

Applicant representatives described the business to the council as a locally staffed retail operation that already draws daytime traffic and occasional private events. Hillary Gallagher, who identified herself as a Kemosabe employee, said, “This job has given us opportunities to travel, expand our skills, and connect with people from all walks of life.” Owner Bobby Kunkel said the store has provided “consistent positive foot traffic” for the block and called Kemosabe “one of the most unique retail establishments.”

Council debate focused on neighborhood character, proximity to the middle school, and whether an all‑beverage license that travels with the land could enable different future owners or uses. Councilor Rebecca (councilor) said she had no problem with the current business model but opposed approving an all‑beverage license because “we’re changing the character of that particular section of downtown, which is vulnerable with children across the street.”

Councilor Quinell offered a friendly amendment to add a condition limiting hours of operation to 11 a.m. to 8 p.m.; that amendment failed. The council then voted on the staff‑recommended approval motion; the motion passed 3–2. The council did not adopt a permanent hours restriction as a condition.

Public comment at the hearing included one written comment in opposition received during the notice period; the applicants and a staff member also addressed the council in support. The planning staff record notes that the Community Development Board had recommended denial (5–1) after concluding the proposed all‑beverage retail concept was not compatible with neighborhood character. Staff recommended approval, citing the zoning and growth‑policy consistency findings and proposed conditions of approval.

What happens next: The CUP carries conditions that require compliance with the submitted plans, dark‑sky‑compliant lighting, sign permits from the planning office, and an 18‑month expiration if the use is not commenced. The liquor license itself is separate from the CUP and is regulated through state licensing procedures.

Sources: Staff presentation and public hearing at the Sept. 2, 2025 Whitefish City Council meeting; applicant comments from Hillary Gallagher and Bobby Kunkel; council debate and vote.