News Summary
The Sandpoint Planning and Zoning Commission has granted a one-year extension for the conditional use permit and zoning variance for Averill Hospitality’s lakeside hotel project. This decision allows the developer to move closer to the building permit phase. While the timeline has shifted, with construction expected to start in summer 2025, the project aims to invest $70 million, offering 99 hotel rooms and various amenities. The hotel is projected to bolster the local economy despite a temporary decrease in lodging tax revenue during construction.
Sandpoint’s Planning and Zoning Commission Grants Extension for Lakeside Hotel Project
The Planning and Zoning Commission of Sandpoint has approved a one-year extension for Averill Hospitality’s conditional use permit (CUP) and zoning variance, moving the long-anticipated lakeside hotel project closer to realization. All five commission members present endorsed the extension, following a concise briefing by the city planner, Bill Dean.
This extension permits Averill Hospitality to keep progressing with their plans for a new lakeside hotel, helping the company take significant steps toward obtaining the necessary building permits. Although there have not been any building permit applications submitted yet, Dean noted that the firm indicated they are nearing this important stage.
Background and Timeline of the Project
The conditional use permit and zoning variance were initially granted in 2024. To preserve these permits, Averill is required to diligently pursue the project’s advancement. Throughout the past year, the company has engaged in comprehensive discussions and design processes with the city, reflecting a commitment to the successful development of the hotel.
Originally, the project aimed for ground to break in the fall of 2024; however, the timeline now suggests that construction is expected to commence in summer 2025. The planned start date for demolishing the existing Edgewater Resort is targeted for September. As of now, the Edgewater Resort continues to accept reservations until August 31, before the demolition begins.
Impact on City Revenue
reduction of $250,000 in lodging tax revenue for 2026 as a direct result of the Edgewater site transformation. However, Averill Hospitality is optimistic about the future revenues from the new hotel. Estimates suggest the hotel could generate between $500,000 to $600,000 in annual hotel property taxes and an impressive $2.5 million from the city’s local option tax.
Project Details and Features
Averill Hospitality acquired the Edgewater property in 2022 and plans to invest a minimum of $70 million into the redevelopment project, signaling confidence in the hotel’s success. The new hotel is set to feature 99 hotel rooms and 31 independently owned units. Additionally, it will boast an events center that can accommodate approximately 300 people, alongside two restaurants designed to enhance the guest experience.
The hotel site is considered a prime piece of real estate in Sandpoint, ideally situated near City Beach, which adds to its allure. In response to public feedback and site challenges, the original proposal called for 181 rooms has been reduced. Nonetheless, the current plan includes robust amenities aimed at serving both local residents and visitors alike.
Parking and Community Integration
Concerns regarding parking emerged during discussions, particularly about a proposed reduction of 99 parking stalls. However, assurances have been made that adequate on-site parking will be provided to accommodate the needs of guests and the community. Furthermore, the project emphasizes creating a cohesive entrance that seamlessly integrates the hotel with City Beach and surrounding amenities.
Future Outlook
With the planned hotel projected to open in 2027 following a groundbreaking in 2025, the properties’ transformation not only promises to rejuvenate the area but aims to contribute significantly to local economic growth. The shared revenue model for independently owned units, managed by the developer, suggests a forward-thinking approach to community engagement, further solidifying the project’s potential benefits for Sandpoint.
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Additional Resources
- Bonner County Daily Bee: PZ Extends Averill Hospitality’s Initial Permits for Lakeside Hotel
- Wikipedia: Sandpoint, Idaho
- Daily Inter Lake: Averill Hospitality Plans Hotel in Sandpoint
- Google Search: Lakeside hotel development Sandpoint
- Bonner County Daily Bee: Waterfront Hotel Development Will Include Private Units
- Google Scholar: Hotel Development Sandpoint
- Bonner County Daily Bee: City Revises Paid Parking Plan
- Encyclopedia Britannica: Hotel Development
