Plans scrapped for Whitefish resort hotel

Plans to construct a $70 million resort hotel and convention center in Whitefish have been scrapped.

An unnamed Midwest developer has withdrawn his proposal for the Two Elks Lodge due to personal health reasons, explained Kellie Danielson, president of Montana West Economic Development.

The resort would have included a 150-room hotel, year-round ice rink, a 45,000 square-foot water park with a wave pool and splash park, an outdoor amphitheater, jogging trails, restaurants and a retail shopping plaza. The convention center was planned to accommodate groups of up to 1,500 and banquets for 2,000.

More than 400 new jobs were projected to be created.

While the Two Elks project is dead, Danielson said partial results from a feasibility analysis on the proposal will be useful in guiding other developers looking to build a resort in the area.

The study, conducted by Hospitality Marketers International of Florida, shows that a large-scale destination convention center, such as Two Elks, is unlikely to be successful in Whitefish due to the town’s isolation and inadequate air service.

“They said a large convention center would be difficult,” Danielson said. “Whitefish is off the interstate and there isn’t enough of a population. It would probably only attract regional or statewide conventions. They don’t see how it could be supported year-round.”

The study does recommend for Whitefish an upscale hotel near downtown with 100 rooms and a smaller conference center that serves up to 500 people.

Danielson said there is an out-of-state developer who manages a national hotel chain that has expressed interest in that idea. She said Montana West is working with consultants on taking the next step with this developer.

The idea of a boutique downtown hotel in Whitefish has been discussed for years and is listed as a “catalyst project” in the downtown master plan.

Most recently, Whitefish developer Orlan Sorenson proposed in June to construct an $11.9 million hotel at the corner of Spokane Avenue and East Second Street. Sorenson withdrew those plans after having difficulty securing financing.

In February the owners of The Lodge at Whitefish Lake expressed interest in building a downtown boutique hotel on the corner of Third Street and Central Avenue. Those talks have yet to gain traction.

In the spring of 2012, there were talks of a possible hotel on the empty lots at the corner of Central Avenue and First Street next to Craggy Range. Property owner Whitefish Frontiers is currently leasing the lots to the city for use as a temporary parking lot.