West Yellowstone council approves reinstatement of Sleepy Hollownonconforming status, tables two parking waivers

The West Yellowstone Town Council on Nov. 4 approved one of three variance requests for Sleepy Hollow, a lodging property at 124 N. Electric Street, and sent the other two back to staff for further work.

At a public hearing, town planner Scott Ailton told the council the applicant had submitted three independent variance options that would each, if granted, allow the project to proceed; the first sought to reinstate the property—s legal nonconforming status so it could be rehabilitated without expanding the existing footprint. "The 1st 1 is to reinstate their nonconformity status ... allow them to only rehabilitate the existing structures," Ailton said, summarizing the staff report and clarifying inconsistencies in the application—s parking counts.

Applicant Ryan Callahan, who said he purchased the Sleepy Hollow in November 2024, told councilmembers the buildings have fallen into disrepair and that the prior business license lapsed in 2023. "My name is Ryan Callahan. I am a, a small business entrepreneur who's looking to open up a hotel here in West Yellowstone over at the Sleepy Hollow," he said, adding that he and partners had done due diligence and believed they were within the 12-month nonuse window that preserves nonconforming status. Callahan said site stabilization work was required to address sewer and safety problems and that demolition would be a costly last resort.

Residents who spoke urged caution. Jerry Johnson, a lifelong West Yellowstone resident, warned that granting the two parking-related variances would undercut the town—s parking ordinance and create a precedent. "I just can't imagine that you that you would even consider 2 and 3," Johnson said, arguing staff and the applicant should pursue alternatives.

After questions and discussion about whether the hardship was preexisting or caused by the applicant's actions, the council voted to approve the nonconforming-status variance and to table the two parking waivers (a reduction in total required spaces and a waiver of the 80% on-site requirement) to allow staff and the applicant to explore scaled alternatives and clearer site plans. Councilmembers instructed the applicant to work with staff on locating any temporary materials staging area and on ways to demonstrate whether conforming parking can be achieved without removing historic structures.

The council—s action on the nonconforming-status request lets the applicant proceed with rehabilitation work that does not expand the nonconforming use, subject to applicable conditions. The two parking requests will return after further staff review; the record shows council and residents voiced concerns about precedent, snow management and long-term enforcement if broad parking waivers were granted.

The public hearing record and staff report cite West Yellowstone Municipal Code sections addressing variances and nonconforming uses (see authorities).