New Holland Lake Lodge owners seek operating permit with no expansion

The incoming owners of Holland Lake Lodge in western Montana's Swan Valley have applied for a special-use permit to operate the business on the Flathead National Forest, and their application did not request any expansion of business operations or physical footprint for the historic property at Missoula County's far north end.

According to Flathead National Forest Public Affairs Officer Kira Powell, Utah businessmen Eric Jacobsen, originally from Great Falls, and Thomas Knowles, his niece's husband, submitted an application for Holland Lake Lodge Inc. Powell wrote in an email to the Missoulian Friday afternoon that "The Forest Service is currently reviewing this application to determine if it meets screening criteria, including the necessary technical and financial capability to operate the lodge."

"The application is for continuing the existing use within the existing footprint with no proposed expansion," she wrote. "If the application meets the screening criteria and is accepted, an environmental analysis will begin. Before a decision is made to issue a special use authorization, there will be an opportunity for public involvement."

Jacobsen and Knowles agreed in early October to buy the lodge from longtime owner Christian Wohlfeil and Utah-based ski resort corporation POWDR , the latter of which had purchased a stake in the company and proposed a massively unpopular — and ultimately rejected — expansion of the lodge. The Forest Service was notified Oct. 11 of a purchase agreement between buyer Jacobsen and sellers Wohlfeil and POWDR, Powell previously told the Missoulian.

Holland Lake Lodge Inc. — the business, the buildings and other infrastructure — is a private company. But it's located and operates on federally owned public land in the Flathead National Forest. That dynamic means that whoever owns Holland Lake Lodge needs a special-use permit (SUP) from the Forest Service to operate the business.

The sale of the treasured property at Missoula County's far northern end, and now the new owners' application for a permit to operate the business, is the latest development in a now yearslong saga that began when POWDR's since scuttled proposal sparked widespread public outcry in late summer 2022.

The company's proposal envisioned 32 new buildings — including a 28-room lodge, a restaurant and 26 cabins — and the removal of 10 structures around the lodge. The plan would have expanded the business' permitted area from 10.53 acres to about 15 acres. The Forest Service ultimately rejected POWDR's proposal and the company announced last fall it would scuttle its full purchase of the lodge from Wohlfeil, who put the property back up for sale.

The SUP is one of two critical documents any owners of Holland Lake Lodge need to sign on to with the Forest Service. The other is a master development plan. The master development plan, or MDP, is a crucial component of operating the lodge. Any owner of Holland Lake Lodge is required to submit an MDP to the Forest Service, and have it approved by the agency, to receive an SUP.

Whereas an SUP details the level of operations and improvements currently allowed, an MDP lays out a permit holder's long-term future plans. An MDP isn't a specific project proposal — it's essentially a preview of projects a permit holder may propose in the future.

It wasn't immediately clear Friday evening whether Jacobsen and Knowles had also submitted their own MDP.

But the application for a permit with no expansion represents, at least for now, a granting of the wishes of a vast majority of locals and others who have since POWDR's proposal expressed vehement opposition to any significant expansion of the lodge.

At public meetings Jacobsen held in Condon in September and October, nearly all attendees voiced strong opposition to a physical expansion of the lodge footprint, with some also opposing any increase in events like weddings or activities like boating. Most said they believed the lodge should be left as-is, other than completion of long overdue maintenance on the buildings. Some said they would like a return to year-round operations, or more community oriented offerings like burger nights, holiday gatherings or local author talks.

Jacobsen said in a mid-September meeting that he didn't have a firm idea yet of what he would do with the business . But, he said, although he believed some expansion is necessary to make the operation financially viable, he was strongly opposed to expansion on the scale of what POWDR proposed. And, he said at the time, expansion could come in the form of expanded business and event offerings, not a physical expansion of the lodge property.

Joshua Murdock covers the outdoors and natural resources for the Missoulian. He previously served as editor-in-chief of The Boulder Monitor in Jefferson County, Montana, and has worked as a newspaper reporter and photographer in rural towns in Idaho and Utah.

Outdoors & Natural Resources Reporter