The Whitefish City Council voted 4-1 to approve the annexation of about 18 acres at the southwest corner of U.S. 93 and Montana 40 last week, and to rezone the property to WB-T, or business transitional.
Whitefish Marine, a boat dealership, is currently located on the parcel.
The applicant submitted a development agreement, which was not required, to give the Council an idea of the planned development. The proposed plan is a use by right in that zone, 256 housing units in 24 buildings and a clubhouse.
Twelve-plexes will be built to the west on two tiers, as the elevation rises from east to west, while two commercial pads will be built nearest to the highway and sold outright with all needed infrastructure.
Developer Will MacDonald, representing the applicant, said the 10% of deed restricted units would focus on serving households earning 80% of the area median income. In exchange for those units, a maximum building height of 40 feet is allowed.
Whitefish Planning and Building Director David Taylor said the Council was only addressing the annexation and zone change. The developer is required to extend city water and sewer, build the shared use path, make all required improvements and undergo architectural review at the time of the building permit application.
The developer’s agreement will stay with the property in perpetuity, so if the land changes hands, the plan will remain binding. According to the agreement, the development “will be in substantial compliance with the site plan provided.”
The site includes two entrances from U.S. 93, one at the light and one to the south which is a right-turn-out-only lane.
Whitefish Public Works Director Craig Workman said the Montana Department of Transportation has plans to reconstruct the intersection of U.S. 93 and Montana 40, and work should start in 2028.
The developer is purchasing the property from the current owner, Whitefish Marine, which will have a ground lease on the commercial property for a maximum of 24 months from closing.
MacDonald said his team wants to bring the property into code and up to Whitefish standards with landscaping.
David Koel with Cushing Terrell showed a site plan with smaller buildings, due to the contours of the land. He highlighted a water feature called the gorge.
Two public comments opposed the annexation, and one from Shelter WF Director Keegan Siebenaler was in favor, although he did call it sprawl and said it was frustrating that the housing is far away from downtown.
Councilor Andy Feury was absent, and Councilor Frank Sweeney voted in opposition.
Reporter Julie Engler can be reached at 406-862-3505 or [email protected]. If you value local journalism, pledge your support at whitefishpilot.com/support.

