Lakeside, a community in northwestern Montana, is undergoing a significant transformation due to an influx of high-end real estate development, including luxurious amenities like golf courses, spas, and private marinas. This growth is attracting wealthy individuals, with property prices soaring; a typical single-family home now costs $1.5 million, up from $400,000 to $500,000 just a few years ago. Developers, such as the Discovery Land Company, known for exclusive communities like the Yellowstone Club, are behind many of these projects, including the proposed 1,700-acre Flathead Lake Club that includes 359 residential lots.
This rapid development has led to considerable tension with long-time locals who express concerns about increased traffic congestion on US 93, strain on existing water and sewer systems, and the potential for environmental damage, particularly to Flathead Lake's water quality due to issues like stormwater runoff and wastewater discharge. Residents worry their town is becoming a "playground for the rich," losing its character. The development is also believed to contribute to rising utility rates, although a local sewer district official stated the rate hikes are unrelated to the new subdivision and are necessary for upgrading aging infrastructure.
Developer representatives argue that these projects bring economic benefits, including job creation and substantial tax revenue. For instance, the Flathead Lake Club is projected to generate an annual net benefit of $22.6 million for Flathead County, with the local school district expected to receive an additional $14 million in tax revenue. However, opposition groups like Citizens for a Better Flathead and the Confederated Salish and Kootenai Tribes are actively challenging the developments, including filing lawsuits against state agencies over water permits and the local sewer district regarding its expansion and public notice procedures. A judge recently paused a water permit for a Lakeside development, allowing for administrative review. Despite public opposition, the Flathead County Commissioners approved a variance for a 159-foot dock and 36 boat slips for a commercial marina linked to the Flathead Lake Club, further fueling local residents' concerns about the "piecemeal" nature of the development approvals.