Opportunities and limitations of industrial growth in Boundary County

The recent dispute over Panhandle Door Inc.'s industrial expansion near residential homes has highlighted a larger issue in Boundary County: where should industrial development go?  

“Maybe if PDI was someplace in a better industrial park, nobody would care,” testified appellant Don Jordan at the Dec. 11 public hearing to appeal Panhandle Door's conditional use permit. 

Boundary County has limited land zoned for industrial use due to its lack of three-phase power, water, sewer and year-round highway access. But its zoning ordinances typically allow property owners to develop their land however they please, regardless of the zone, even if neighboring residents claim the development devalues their property. The only exceptions are residential and rural commercial zones, which prohibit land-intensive uses. 

“There’s always a chance of conflict; that’s just the nature of private property," said Boundary County Commissioner Ben Robertson. “But for our zoning ordinances, we don’t have any solid enforcement for violations. That needs to be looked at again.” 

In the early 2000s, a group of experienced government officials drafted a comprehensive zoning plan for Boundary County, one they believe could have helped enforce violations and mitigate property disputes like the one at PDI. But the zoning commission at the time removed certain regulations to create a plan more aligned with the free-market values of many local landowners. 

“The ordinances enacted have no teeth of enforcement,” said Gerald Higgs, a co-author of the original comprehensive plan and a former planning and zoning commissioner in Hayden. “There is no continuity for the zones those ordinances established.” 

Unfulfilled potential of county’s largest industrial zone 

The flexibility in current county zoning ordinances provides property owners with more opportunities in an area with limited industrial zones. 

However, this flexibility also has drawbacks. Industrial-grade infrastructure is sometimes used for commercial or residential purposes, preventing the zone from reaching its full development potential. 

Such could be the case with the 80-acre vacant industrial lot behind the county fairgrounds. The lot, which receives water and sewer hookups from the city of Bonners Ferry—a rare commodity in the county—also has railroads on either side and is adjacent to the Kootenai River. It is the largest industrial zone in the county, with an optimal location and established infrastructure. 

Yet, the park has remained decommissioned for nearly 20 years. Plans for the privately owned land suggest it may be rezoned for mixed commercial and residential use as early as spring 2025. 

“The old mill is a beautiful industrial site, and I think it’s a shame that property doesn’t have a business on it,” Robertson said. “In an ideal situation for me personally, I would like to see that site stay industrial. It’s the best true industrial site in the county. But you can’t force a private enterprise to do anything. They can sell that to whoever they want, or to nobody.” 

Robertson said the county at one time considered the idea of purchasing a parcel of the lot, but it was unaffordable, and the county is not in the business of managing leases. 

Balancing growth and infrastructure needs 

Three Mile is an area that has seen lots of development in recent years, with an ample supply of land zoned for commercial, light industrial use. But there is also a waitlist for commercial water hookups. PDI owner Nelson Mast said he has seen a debate over the years as to whether taxpayers should foot the bill for improved public utility systems to promote further industrial development. 

“What’s the balance, I don’t know,” he said. “But our county has grown an awful lot over the last 10 years, and our infrastructure hasn’t kept up.” 

To accommodate growth through infrastructure improvements, Bonners Ferry and Moyie Springs have recently received Idaho Community Development block grants. Bonners Ferry received its grant within the last year to build a sewage lift station, for which the city council approved a bid at its December city council meeting. Moyie Springs was awarded its grant after COVID-19 to upgrade its wastewater treatment plant. 

Another block grant could improve Three Mile infrastructure, if it qualifies from an income standpoint. Such grants require that a majority of those affected by the grant are low to moderate income. 

Other federal grants, primarily through the U.S. Department of Agriculture, are offered periodically. 

“At some point, some of these small businesses may advance to a point where they're no longer appropriate where they are,” Jordan said at the PDI hearing. “We need to manage them and help if it gets to a point where we got a business that's likely going to outgrow us. What can we as a county do to facilitate that business? Give them a place to go to.”