Battle between citizens, county and Happy’s Inn developers reaches court

The battle between a group of property owners in the Thompson Chain of Lakes, Lincoln County and a developer finally reached the courtroom Tuesday morning in Libby.

District Judge Matt Cuffe heard arguments from attorneys from both sides as the Thompson Chain of Lakes Stewardship Coalition seeks a summary judgement against the county in its hope to stop the construction of a RV park in Happy’s Inn.

The lawsuit was filed in November 2022 and continues an at-times contentious dispute between some long-time property owners in the area and a Whitefish-based developer, Parks Family Real Estate Company, who is hoping to build a RV park that would include 69 recreational vehicle sites and 20 tent sites on 21 acres on the north side of U.S. 2, across from Happy’s Inn.

The county commissioners gave the proposed RV park a preliminary OK at a meeting in September 2022. 

The coalition was formed late last summer partially in response to the proposed commercial development.

The hearing, which lasted a little more than one hour, saw David K.W. Wilson, Jr. and Robert Farris-Olsen of the Helena firm Morrison, Sherwood, Wilson & Deola, argue for the Chain of Lakes Coalition while Alan F. McCormick of Missoula-based Garlington, Lohn and Robinson and Angela LeDuc of Kalispell-based Rock Mountain Law Partners spoke for the county and the developer.

The suit is challenging the county’s decision to give a preliminary approval to the developer. The coalition filed a motion for summary judgment on Oct. 23, 2023. 

Opponents of the RV park are primarily concerned about its proximity to several spring-fed lakes on the Thompson Chain of Lakes. The group said the RV park is allowed to use up to 207,000 gallons of water per month with subsequent wastewater output. The group says this quantity will put homeowner’s wells and lake levels at risk.

“The proposed development would make it larger than Logan Park and McGregor RV Park combined,” a prior news release stated.

According to information on their respective websites, McGregor Park has 41 RV sites and Logan Park has 37.

Kris Cole, one of the owners of Parks Family Real Estate, said in a previous interview with The Western News that the owners of the McGregor RV Park said they are using 16.3 gallons of water per day at each site.

In the argument for the coalition, Wilson talked about the county adopting the Thompson Chain of Lakes Neighborhood Plan in 2010 with a goal of maintaining the natural resource values of the area.

“While the growth plan is not a regulatory document, the planners decided that RV parks shouldn’t be located where it is proposed,” Wilson said. “We don’t think Lincoln County gets off the hook because it didn’t implement zoning in the area.”

Those responsible for the 2010 Neighborhood Plan said, “maintaining the water quality of lakes, streams and wetlands is important. Many of the lakes are recharged through groundwater flows and wetland. Most of the lake shorelines, other than Crystal, Lavon and Bootjack lakes and the upper lobe of Upper Thompson, have very little shoreline development. The natural shorelines and well-vegetated character of the area help maintain good water supply.”

Another argument by the coalition’s attorneys included wildlife in the area and possible conflicts.

In the application for the preliminary plat, it said, “This project site may contain acceptable habitat for white-tailed deer, mule deer, elk, moose and black bear. Other potential inhabitants include hawks, owls and woodpeckers.

“Species of Concern (Montana Natural Heritage Program) for this general habitat type and location include: hoary bat, fisher, northern goshawk, Cassin’s finch, evening grosbeak, pileated woodpecker, flammulated owl and Clark’s nutcracker.”

In the commissioner’s final subdivision report, it concludes that, “There does not appear to be a significant impact to the natural environment.”

But Farris-Olsen used a 2021 letter from Montana Fish, Wildlife and Parks to argue the presence of two collared grizzly bears in the area in 2010 and 2018.

The letter was part of a subdivision preliminary plat application from Montana Lakes in 2021 when it sought approval from the county to develop forest land into home sites in the vicinity. 

“There are likely more grizzlies in the area and there are eagles, migratory birds such as loons that are not mentioned in the letter from FWP,” Farris-Olsen said. 

He argued that the county should have weighed information in the environmental assessment.

“The EA should’ve been at the forefront of everyone’s thinking,” Farris-Olsen said. “It was dismissed in saying there will no impact to wildlife.”

McCormick then offered his arguments for why the preliminary plat approval was given.

“In terms of the septic permits, the commissioners may have given their approval, but DEQ (Montana Department of Environmental Quality) still has to issue or deny the permit,” McCormick said. “The county is only obligated to take public comment and submit it to the DEQ.”

He also argued that local governments are prohibited from denying development based, “solely on non-compliance with a growth policy because zoning hasn’t been implemented.”

McCormick added, “When the county approved the preliminary plat, they had all the information and FWP was silent. The subdivision area was already approved and that’s why the FWP didn’t comment.”

LeDux, speaking on behalf of the developers, said much of what the plaintiffs said was taken out of context.

“There isn’t any groundwater information,” she said. “What FWP provided is not a groundwater study, it’s not from the U.S. Geological Survey. That 1993 Environmental Assessment, I couldn’t find it. The only access I had to it was through the plaintiff’s information. 

“A lot of ‘the sky is falling’ statements are being made, but there’s no evidence,” LeDuc said.”The impacts are purely speculative. The information to deny or OK isn’t there.”

Following the attorney’s arguments, Cuffe said the case, which was set for a bench trial on Jan. 10-11, couldn’t be held because of two jury trials that were planned for that time period.

The attorneys agreed that it was OK for the bench trial to be vacated until he has made a ruling on the summary judgement motion.

“The case is well briefed and I have no questions of either side,” Cuffe said. “I’ll take it under advisement and make a ruling at a later date.”

If the commissioners ultimately get the chance to approve the subdivision, the state Department of Natural Resources and Conservation and Department of Environmental Quality would have to give their respective blessings before any work could begin.