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

In a recent meeting, Sandpoint’s Planning and Zoning Commission unanimously approved a one-year extension for the conditional use permit (CUP) and zoning variance sought by Averill Hospitality for their ambitious lakeside hotel project. All five commissioners in attendance recognized the importance of advancing this project, with the extension bringing Averill closer to entering the building permit phase.

During the commission’s meeting, city planner Bill Dean presented the case for the extension, highlighting that while no building permits have been submitted yet, Averill has indicated they are nearing that stage. The original CUP and zoning variance were granted in 2024, which mandated that Averill must diligently pursue the project to maintain these permissions.

Project Timeline and Moving Forward

The timeline for the hotel project has experienced some changes. Initially expected to see construction start in the fall of 2024, now the plans have shifted to target a summer 2025 groundbreaking. Mayor Jeremy Grimm confirmed that demolition of the existing Edgewater Resort building is planned for September, but the resort remains operational and is still accepting reservations until the end of August.

Sandpoint’s community is bracing for economic impacts associated with the construction. The city anticipates a reduction of around $250,000 in lodging tax revenue for 2026 as preparations commence on the Edgewater site. However, Averill Hospitality estimates that the new hotel will contribute significantly to local revenues, generating between $500,000 to $600,000 annually in hotel property taxes, alongside approximately $2.5 million from the city’s local option tax.

Investment and Project Details

Averill Hospitality, which acquired the property in 2022, plans to invest at least $70 million in the project. The proposed hotel aims to provide a comprehensive experience with a total of 99 hotel rooms in addition to 31 independently owned rental units. The design also includes an events center catering to around 300 guests and two restaurants, enhancing the area’s appeal.

Originally, the proposal featured 181 rooms; however, feedback from the public and site challenges led to a reduction in scale. Concerns about parking have emerged, particularly with the initial plan reducing parking stalls by 99. Nevertheless, reassurances have been made that sufficient on-site parking will be available for future guests and events.

Enhanced Integration and Future Outlook

The project focuses on creating a cohesive entrance that will effectively integrate the hotel with City Beach and the nearby amenities, further enhancing the site’s attractiveness. With plans for a 2027 opening, following a 2025 start to construction, the lakeside hotel is poised to become a significant addition to Sandpoint’s hospitality offerings.

In conclusion, while there are hurdles to overcome with the current timeline and economic adjustments, the extension granted by Sandpoint’s Planning and Zoning Commission signals a strong move towards the realization of Averill Hospitality’s vision for the new lakeside hotel and its potential to contribute 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