IDAHO FALLS, Idaho (AP) -- Grand Targhee ski resort negotiated a land swap that will give it room to expand lodges while protecting grizzly bear habitat.

The resort and U.S. Forest Service signed the agreement Friday after years of negotiating.

The trade gives the government 400-acre Squirrel Meadows, a haunt of grizzly bears near the southwestern corner of Yellowstone National Park.

The ski area took ownership of 120 acres near its lodge. Resort officials hope to expand the resort from 90 rooms to 900, pending approval by county officials in Wyoming and Idaho.

"Squirrel Meadows will now be protected from development and will forever remain available for use by grizzly bears in our most productive bear management unit," Caribou-Targhee National Forest Supervisor Jerry Reese said.

For decades, the Forest Service has tried to gain the land, claiming it was critical to preventing development and reducing the possibility of contacts between the bears and humans.

Squirrel Meadows is surrounded by Forest Service land. National Park Service officials say marshy meadows are of crucial importance to everything from bears to spotted frogs to big game animals such as moose, elk and deer.

Targhee officials are also happy to start expanding.

"With county input and guidance, our resort plan will ultimately reflect our vision to protect the environment as well as to develop a one-of-a-kind base area that retains Targhee's spirit and better serve our guests," resort general manager Larry Williamson said.

A local environmentalist who lobbied against the expansion of Targhee said the government and resort must now follow up on their promises to protect bears and the environment.

"We're going to make sure Squirrel Meadows is actually protected as grizzly habitat and we're going to be involved in county planning process to make sure the development doesn't create new problems," said Marv Hoyt with the Greater Yellowstone Coalition.

The coalition lobbied against the trade because of fears of development at the ski area.

AP-WS-05-29-04 1908EDT