BN homes critical part of neighborhood identity

Three vacant homes in the Railway District could play an important role in the mixed-use neighborhood as it searches for its identity.

Two shotgun shacks on First Street and one larger house on O’Brien Avenue were officially donated last week by BNSF Railway to the Whitefish Housing Authority. Success in the Railway District depends, in part, on how the housing authority rehabilitates those homes, says Sawyer Shirley of National Facility Consultants, author of a recent Whitefish housing assessment study.

“Ideally, [the Railway District] would become a targeted area for improvement and redevelopment,” Shirley said. “The authority could spearhead the housing-related efforts.”

The authority could transition the three declining properties into desirable rentals and eventually shift them to permanent homeownership, Shirley suggests.

He says the neighborhood is becoming a destination for young professionals, evidenced by the fact that more than half of the residents in the Railway area are considered white-collar workers. Based on the history of the neighborhood, the revitalization that has already occurred and its proximity to downtown, Shirley says the Railway District is primed to be a “boutique neighborhood” with desitnation shops such as art galleries.

“The area has tremendous potential to attract young, first-time homebuyers or moderate renters,” he notes.

The housing authority is already taking steps to get one of the properties on the rental market.

Director SueAnn Grogan says the large home on O’Brien only needs minor improvements and should be rented out this year. The smaller homes likely each need $20,000 to $25,000 in improvements before they can be occupied.

Shirley says the authority should work with the city to find enough funding to make those improvements. One possible source would be Tax Increment Funds.

“Improvement of the homes would help to demonstrate commitment to the redevelopment of the Railway District,” he said.

The result would be an increase in the property value for all three homes and a resulting increase in the property tax revenue generated by the city.