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The Question is Not Should
 the City of Whitefish Protect Haskill Basin ,
 land that encompasses the primary source of the City's drinking water,
(That answer is Yes!)



The Question is How
to put together a plan that most equably distributes the costs that
residents and businesses will pay for the conservation easement
on more than 3000 acres that Stoltze Land and Lumber Company
has most generously offered the City of Whitefish.

A Current Proposal to Fund this Purchase Solely with an Increased Resort Tax which places a heavy burden squarely on local businesses, should be reconsidered.
Read why below.

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To learn more about the proposed Haskill Basin Conservation Easement attend a specially scheduled Whitefish  
Town Hall Meeting on Thursday, February 12th.

at 7:00pm

Whitefish City Council Chambers

402 East 2nd Street

Click here to email comments.  


 

Here's another way to think about equably funding this vital conservation easement for Haskill Baisn without relying solely on raising the resort tax which primarily impacts small local businesses.

The short answer is: A combination of fund-raising methods which includes fund-raising, a modest water rate increase, and perhaps an increase in Hotel and Restaurant/Bar Resort Tax, would be the most equitable solution.

Here's why:
  • Downtown Whitefish is made up of a delicate balance of locally-owned businesses that form the fabric of the Whitefish community.  Whitefish residents and visitors cite the unique character of Whitefish and their appreciation of the fact that the majority of businesses are locally-owned and operated, as important to them.  An increase in the Resort Tax collected by Retail businesses would directly impact these businesses and would likely do damage to this fabric.  Harming the Retail businesses could change downtown Whitefish from an authentic mountain town to just another "tourist town" with only tourist-serving  businesses.
  •  "Brick and Mortar" businesses like our retailers in Whitefish, are under attack from big box stores, like those that exist 15 minutes to the south in Kalispell.  Additional "big retail" is proposed to be built north of Kalispell in the near future, putting further pressure on our independently owned businesses.  By approving a ballot measure to increase the Resort Tax to purchase the Haskill easement, the Whitefish City Council could unwittingly add to the pressures that work against the health of our locals-serving, locally-owned Retail businesses in Whitefish.
  • A majority of the sales at Whitefish Retail businesses are made by local residents. The visitor economy is only strong for a few months of the year, which is the reason that 45% of the Resort Tax comes from Retail. Hotels only collect 18% of the total Resort Tax (most of it during the summer months), with Bars and Restaurants collecting the other 37%. The attached graphs #1, graph #2 and graph #3  show that Retail businesses collect large amounts of Resort Tax during months when there are few visitors in the area.
  • While they support the purchase of the Haskill conservation and recreation easement, many Whitefish residents who own Retail businesses that collect the Resort Tax have significant concerns over the proposal to increase the Resort Tax to fund the purchase of this easement.
It's important to consider the following:

1.      While Retail businesses who collect the Resort Tax believe the tax has been successful in fulfilling its intended purpose, these businesses have experienced a loss of business because of the tax.  Surrounding communities offering similar goods do not have a tax.  This has caused shoppers to buy elsewhere. In addition, there has been, and continues to be a negative perception of the Resort Tax by local shoppers, which causes further loss of business.  Whitefish retailers report that shoppers question the tax frequently and are more hesitant to buy in Whitefish, even after 19 years of the tax being in effect.

2.      Using a proposed increase in the Resort Tax as the sole funding source to purchase the Haskill easement does not fairly spread the burden of protecting the Haskill portion of Whitefish's water source across all of those who benefit from that water, all Whitefish water users.  This funding option also does not ask anything of those who benefit from the recreation opportunities that will be perpetuated in Haskill through the purchase of this easement.
 
3.        A combination of fund-raising methods which includes fund-raising, a modest water rate increase, and perhaps an increase in Hotel and Restaurant/Bar Resort Tax, would be the most equitable solution. A robust fund-raising campaign could be undertaken to raise a significant portion of the amount needed for the Easement purchase. In addition to a local campaign, the many National foundations that support land conservation, wildlife habitat and large landscape connectivity should be approached. The Hotel and Restaurant/ Bar portion of the Resort Tax could be raised by 1% which would generate approximately half the needed funds, and if necessary the City could do a modest Water Revenue Bond at a favorable 2.5% interest for any balance that is needed. This combination of funding sources would spread the burden fairly across the many groups that benefit. Supporters who live outside Whitefish could contribute through a donation, water users would be paying a small rate increase to protect their water supply, and visitors would be taxed on their Hotel and Restaurant purchases. This solution solves several problems:
 
1) Whitefish's core retail businesses will not be damaged.
2) Financial support will be spread across all those who benefit.
3) There will be no need for an election, and the political polarization that always comes with elections.
 
Under this scenario, everyone wins. One important element of what makes Whitefish unique will not be damaged to protect another important piece of Whitefish's "sense of place". This wonderful opportunity to acquire the Haskill Easement should not create losers.

 

Sincerely,
Citizens for a Better Flathead
Background:

"In June 2013, the Trust for Public Land and the F.H. Stoltze Land and Lumber Company developed a plan to protect more than 3,000 acres of working forest lands in the Haskill Basin near the City of Whitefish. Stoltze gave The Trust for Public Land the right to purchase a conservation easement, which would allow the continued use of the Haskill Basin property for sustainable forest management and recreation, while prohibiting all future residential, industrial and commercial development.

Important to the city's economy, wildlife and the recreating public, these lands are also the source of more than 75 percent of the city's drinking water supply. The

easement would ultimately be conveyed to Montana Fish, Wildlife and Parks for long-termmonitoring and enforcement. There are a number of potential funding options that can be "knit together" to protect the Haskill Basin." Click here to learn more. The City of Whitefish is taking the lead in putting together funding to purchase this easement.

 

 


Sample Comments

Please consider A combination of fund-raising methods, which includes fund-raising, a modest water rate increase, and perhaps an increase in Hotel and Restaurant/Bar Resort Tax, as the most equitable solution to fund the Haskill Basin Easement.