Whitefish board tightens rules for 'formula' businesses, approves zoning text amendment

The Whitefish Community Development Board unanimously approved a zoning text amendment on June 19 that revises the municipal definition of "formula retail" businesses to "formula business," adds development standards for such businesses and requires an economic impact study for formula hotels or formula businesses over 10,000 square feet.

The change, presented by Dave Taylor, planning staff, revises the city code and adds a new special-provisions section to provide a clearer legal basis for restricting formula businesses in and near downtown. "So what we're proposing is to revise the definition of formula retail business, and then we're adding a whole new section in our special provisions that specifically has development standards for formula retail businesses," Taylor said during the board's discussion. The proposed language also would broaden the types of businesses that can be regulated to include bars and lounges, gyms and fitness studios, equipment rentals, certain personal services and some non-automobile rentals.

Why it matters: board members said the tightened language will let the city better enforce downtown protections the community sought in earlier planning work. "At the May, growth policy meeting, we voted to prohibit formula retail and to prohibit box stores," Board member John said. "If we attempt to regulate box stores and formula retail, then that's inconsistent with our vote to prohibit."

Staff told the board the amendment ties the formula-business rules to the city's growth policy and to existing architectural-review standards that already limit formula-style storefront design. Taylor told members that the ordinance would also require an economic impact study for any formula hotel or formula business exceeding 10,000 square feet and would extend the definition beyond retail to capture service businesses that use standardized logos, menus or building designs.

Several board members asked whether broadening the definition would allow more formula businesses; Taylor answered it would not expand zoning allowances but would expand the kinds of businesses the downtown restrictions could cover. "By broadening it, we're tightening it because we're including more things that could be considered formula retail," Taylor said, describing examples such as scooter-rental franchises and chain fitness studios.

After discussion, a board member moved to approve WZTA25-02 "as presented by staff." A second was made for the purpose of discussion; the motion passed on a unanimous voice vote. "All in favor unanimously passes," the board chair said.

The ordinance-level amendment (WZTA25-02) will be forwarded to the city for any further steps required by charter and state law.

Board members and staff said the revised language is intended to protect downtown's locally owned businesses while giving the city clearer standards to defend denials if a court challenge occurs.

Notes: The board's staff report and the draft code language appear on pages 2 and 3 of the meeting packet; the board's motion recorded the unanimous voice vote to approve the amendment.