Insurance and covenants restricting RV Park discussed

SEELEY LAKE – The Seeley Lake Hospital District approved purchasing Directors and Officer insurance and discussed the children’s area in the lobby at their Feb. 12 meeting. During public comment, they discussed the resolution they passed at their January meeting that denied the request to change the covenants that would allow the proposed RV Park development in the Deer Creek Subdivision.

District Clerk Marty Kux presented the board with information regarding Directors and Officers insurance. D&O insurance is designed to protect the board members from accusations and wrong doing in their capacity as a trustee.

“In the unlikely event that there is legal action taken against you, then you will be able to have an insurance company pay a defense firm to represent you,” said Missoula County Deputy Attorney John Hart who was in attendance at the meeting. “You are doing this, you are volunteering, you are putting yourself out there and this is the kind of safeguard having Directors & Officers liability insurance that I would recommend.”

Hart explained that while the Missoula County attorney’s office is by statute a legal advisory to local county boards, if there was a judgment against the Hospital District, the District would be responsible to pay the defense.

“We would definitely do what we could but it may not be that we have the capacity,” said Hart. “If Missoula County or a commissioner was also involved in that lawsuit, then by statute, or duty would run first to Missoula County and the board of county Commissioners and the Hospital District would need to find their own attorney.”

The board unanimously approved purchasing Directors & Officers insurance coverage that covers the District Clerk and members of the Seeley-Swan Medical Center Foundation Board, if possible, with a cap of $3,500 annual premium.

The tablets purchased by the Seeley Lake Elementary Student Council during the Medical Center’s Capital Campaign in 2014 were removed from the lobby. Despite tight controls, youth were hacking into the Internet creating a management issue.

The board explored several ideas of how to create a welcoming area for children however voiced concern that providing entertainment for sick and well child in the same space is counter productive.

The board will continue to work with the staff to explore other ideas for the space.

At the January meeting, Medical Center Foundation Board President Duane Anderson asked the Hospital District to respond to the request from adjacent landowner Dave Stewart to amend the covenants to permit the proposed RV Park on Lot 1. The covenants were filed in Missoula County in March 25, 1994 which restrict RVs, campers and trailers on the property. The Board voted unanimously to deny the request to change the covenants.

During public comment, Stewart addressed the board. He said he is trying to update the covenants so that instead of referring back to the Deer Park Landowners Association that no longer exists due to it being involuntary dissolved, it allows all the current land owners in the Deer Park Subdivision to be up to date with the covenants. He also is working on developing the RV Park on Lot 1 with Brandon Grosvenor.

Stewart said it wasn’t until the title search revealed RVs, trailers and campers are not allowed in the subdivision’s covenants that he and Grosvenor realized the covenants needed to be changed. While he has actively communicated with the Foundation Board, Stewart said he didn’t realize the Hospital District was a separate entity.

“I don’t know how much discussion was given at the last meeting or what your thoughts or comments are but I’m open, I’m here and I’m willing to work with everyone to try and move forward with these things,” said Stewart who expressed frustration that the board would pass a resolution without having anyone in attendance at the January meeting to speak on behalf of the RV Park.

Stewart said he thinks the RV Park development would increase property values for all landowners in the subdivision, show development potential in Seeley Lake, possibly increase the demand for services at the clinic and support the community by bringing in jobs and more visitors which would require local services and entertainment.

Board Chair Twyla Johnson, who has been in real estate for 25 years, disagreed with Stewart’s comment that the RV Park would enhance the value of the District’s property.

Anderson added that in the Foundation’s view, as a non-profit, increased property values don’t really affect them one way or another.

“I think community development and business development are really needed in Seeley Lake,” said Anderson. “However, I tend to agree with the others. I don’t know of anyone who has really supported [the idea of the RV Park].”

Trustee Terryl Bartlett responded that the clinic is not an emergency room and is not open on weekends.

“[Visitors requiring medical care] would actually create more problems,” said Bartlett.

Stewart asked the board what were their specific objections to developing Lot 1 into an RV Park.

Bartlett shared public comment from the January meeting that pointed out the RV Park is located across Highway 83 from Riverview Drive. This is currently the only cross walk on the south end of town and could be potentially hazardous.

Stewart responded that Grosvenor has worked with the Montana Department of Transportation and addressed that concern in his proposal.

Bartlett added that while she is not opposed to an RV Park in Seeley Lake, she doesn’t like the idea of having it right on the highway. Also, 80 slots is a lot of RVs.

“I know he doesn’t want the space-to-space type of thing,” said Stewart. “[Grosvenor] wants a more campground, park-type thing. He has some preliminary designs. I think after that first meeting, he kind of paired it down.”

Johnson said she has heard concerns voiced from landowners to the east that live on Double Arrow about noise, dogs and generators.

“I think there are a lot of different things that went into play in our decision ultimately hoping that we could still get Lot 2 [the four acre parcel north of the Medical Center,” said Johnson.

Anderson said that the Foundation saw the strict covenants as an advantage to locating the Seeley-Swan Medical Center in the Deer Creek Subdivision. He added that at least one Foundation board member would like to see the Hospital District and Foundation own the entire subdivision.

“We see this whole block, ideally in a perfect world, as being one big medical community which might include a fitness center, pharmacy, some other behavior health clinics, eye doctors and others,” said Anderson.

The Hospital District and Anderson were blindsided when Stewart told them Grosvenor purchased Lot 2. The Foundation had been trying to purchase Lot 2 from Stewart but they were never able to close on the deal. Stewart assured the Board the RV Park would only be on Lot 1.

“It’s unfortunate because I had always held out hope until today that we would somehow be able to strike a deal with you on Lot 2,” said Anderson. “For purposes of this discussion, our motivation is probably not there. We need to look south.”

“At [our January meeting] we were still focused and are focused on this [vision of a] medical campus that is north and south that would have all the providers on one campus,” said Johnson. “That was our hope - to develop in both directions. [In January] we thought that was still a viable option.”

Hart said the covenants are legally binding, whether there is a landowners association to enforce them or not. Only a civil lawsuit from one of the other landowners could enforce the covenants should one of the five landowners in the subdivision choose not to follow them.

The next meeting is scheduled for March 12 at 5 p.m. in the Seeley-Swan Medical Center conference room.