Council approves second amendment allowing Whitefish funds to serve as restricted bonding for Depot Park Townhomes

The Whitefish City Council on Jan. 21 approved a second amendment to the developer agreement with the Whitefish Housing Authority (WHA) to enable final plat submittal for the Depot Park Townhomes project.

City staff explained the amendment allows the city to accept, as a form of bonding, the restricted use and disbursement of about $439,000 of city funds from a previously agreed $2,000,000 commitment for construction items in section 7.1 of the development agreement. Under the amendment, if the housing authority later obtains a conventional bond or letter of credit, the city would release the restricted funds to the developer.

City staff said the arrangement saves the housing authority the immediate expense of obtaining a bond and that the fiscal year 2025 budget already accounts for the expenditure of the remaining funds; in practice the city would hold and restrict the roughly $439,000 until the specified construction items are complete. Staff recommended approval so WHA could apply for final plat and proceed toward construction.

Council members asked for a project update from the housing authority; staff said WHA had reviewed the amendment with its board but its executive director was not present for the meeting. Staff also reminded council the agreement includes a three-year extension measured from May 2024 for project completion and that final plat is the next step before any building permit can be issued.

Councilor Ben moved to approve the second amendment and authorize the city manager to execute it; Councilor Cornell seconded. The motion carried unanimously.

Staff said they will request the standard annual project progress reporting required under the first amendment and will ask WHA to provide an update to the council in the coming month so elected officials can monitor schedule and construction changes.