The U.S. Forest Service is aware of at least one potential buyer for the historic Holland Lake Lodge, but the process will remain private until any sale is complete.
Longtime lodge owner Christian Wohlfeil confirmed he has received at least one interested party in the lodge. He said no group is currently under contract and would not elaborate on any potential buyers.
“It is still for sale,” Wohlfeil told the Missoulian on Friday.
Meanwhile, the lodge has closed many of its public-facing activities this summer as the Forest Service works to fix the site’s wastewater lagoon, over which they could be fined by the state for violating Montana water law.
The business was in the center of a heated debate over a potential expansion of the site with Utah-based company POWDR, which would have tripled the footprint of the lodge and added several new buildings.
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Holland Lake Lodge has been in operation since 1924 under a Forest Service Special Use Permit. While the land around the lodge is public, the business is private and regulated by the Forest Service.
For years, Wohlfeil has listed the business for sale. He has previously said the lodge needs major upgrades to stay in operation.
After a year of back-and-forth debate with Wohlfeil, POWDR, the Forest Service and the public, POWDR pulled out of the expansion deal. Wohlfeil then put the lodge back on the market.
The Forest Service told the Missoulian that the agency is aware of a buyer, but the sale remains private until the ownership change is complete, according to Flathead National Forest spokesperson Kira Powell.
POWDR, a Utah based ski corporation, gave control of the business back to Wohlfeil in February. The company appears to be pulling out of the remainder of its stake in the lodge.
POWDR has not responded to requests for comment from the Missoulian. Some parts of the business, like the lodge’s liquor license, still list POWDR as the mailing address for the license.
If a sale is complete, the new owner must then submit a special use authorization application to start doing business within the lodge.
The Forest Service will engage with the public for feedback prior to making a decision on granting the new owner authorization to reopen the business, Powell said.
The new owners could also submit a master development plan, which any special use permit holder must submit for proposed changes or upgrades. The development plan review would not be public, but the plan would still hinge on other public processes.
“No changes to existing use at the resort will be authorized without environmental analysis and documentation (National Environmental Policy Act [NEPA] analysis), including public involvement,” Powell said.
Services shuttered, fines expected
This summer, the lodge is closed for most public-facing services because of a leaking wastewater system that serves both the special use permit and the Holland Lake campgrounds.
In 2023, the Montana Department of Environmental Quality found the two-cell lagoon system was leaking at about 140 times the state-approved levels. No contamination has been reported to Holland Lake, according to DEQ.
The Forest Service reported in May that an additional study showed no groundwater contamination.
The lagoon is owned by the Forest Service. After the study showed water contamination, the state pulled the permit for the lagoon and required the Forest Service to study the area and replace the lagoon by this summer.
Wohlfeil declined to comment on what specific operations were happening at the lodge this summer.
As of July 3, the Forest Service has started studies on the lagoon but not permanently fixed the site.
DEQ has considered the leakage a violation of the Montana Water Quality Act and could fine the Forest Service next month for not fixing the site quickly enough, according to DEQ public information officer Nolan Lister.
Griffen Smith is the local government reporter for the Missoulian.