Sandpoint Planning and Zoning Commission Approves Hotel Extension

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 Planning and Zoning Commission Grants Extension for Lakeside Hotel Project

Sandpoint’s Planning and Zoning Commission has approved a one-year extension for Averill Hospitality’s conditional use permit (CUP) and zoning variance, paving the way for a new lakeside hotel. This decision comes after all five attending commissioners expressed their support for the extension during a brief presentation by city planner Bill Dean.

The extension enables Averill Hospitality to move closer to initiating the building permit phase for the hotel project. Although the city planner noted that there have been no permit submissions yet, Averill has indicated they are nearing this crucial step.

The CUP and zoning variance were initially issued in 2024 under the condition that the developer would diligently pursue the proposed work to keep them valid. Since then, Averill Hospitality has engaged in extensive discussions with the city about design processes, demonstrating commitment to developing the site.

Shifts in Project Timeline and Plans for Demolition

The anticipated timeline for the hotel project has experienced significant adjustments. While initial projections called for construction to begin in the fall of 2024, it is now expected that work will kick off in summer 2025. Mayor Jeremy Grimm announced that demolition of the current Edgewater Resort building is targeted to commence in September. The Edgewater Resort itself will continue to accept reservations until August 31.

As construction looms, Sandpoint is preparing for a potential decrease in lodging tax revenue, estimating a $250,000 reduction in 2026 due to the construction at the Edgewater site. Nevertheless, Averill Hospitality anticipates the new hotel will generate between $500,000 to $600,000 in annual hotel property taxes, along with $2.5 million from the city’s local option tax.

Hotel Features and Community Impact

Averill purchased the Edgewater property in 2022 and plans to invest a minimum of $70 million into the redevelopment project. The proposed hotel will feature 99 hotel rooms and 31 independently owned units, along with an events center designed to accommodate around 300 guests and two restaurants.

This prime piece of real estate in Sandpoint is conveniently located near City Beach, enhancing its appeal for both guests and the local community. The original project proposal included 181 rooms, but this number has been adjusted to fit site constraints and address feedback from local residents.

To optimize the use of the independently owned units, the developer plans to implement a rental program that allows for revenue sharing with the unit owners. Parking has been a topic of concern, particularly regarding the initial reduction of 99 parking stalls. However, assurances have been provided that ample on-site parking will be available.

Integration with Local Amenities

In terms of design, the project aims to create a cohesive entrance that integrates the new hotel with City Beach and surrounding amenities. A focus on accessibility and aesthetics is central to the proposal, reinforcing Sandpoint’s commitment to enhancing community spaces.

With expectations set for the project to break ground in 2025 and open its doors to the public in 2027, Averill Hospitality’s lakeside hotel is poised to transform the area and contribute significantly to the local economy.

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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