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.

Planning and Zoning Commission Approves Hotel Construction Extension

In a significant step for the city of Sandpoint, the Planning and Zoning Commission has granted a one-year extension for the conditional use permit (CUP) and zoning variance for Averill Hospitality’s anticipated lakeside hotel project. The unanimous decision by all five attending commissioners follows the presentation provided by Bill Dean, Sandpoint’s city planner.

This extension allows Averill Hospitality to push forward in detailing their plans for the new hotel as they inch closer to the building permit phase. Although the developer has not yet submitted any building permits, Dean emphasized that the company has indicated they are nearing this important milestone.

Impact on Project Timeline

The original permits were issued in 2024, requiring Averill to diligently pursue the planned work to maintain those permits. While initial timelines aimed for construction to commence in the fall of 2024, the project has now shifted with an expected groundbreaking in summer 2025. The mayor announced that the target for demolition of the existing Edgewater Resort building is set for September.

Currently, Edgewater Resort remains open and is accepting reservations until August 31, allowing guests to enjoy the lakeside amenities while preparations for the new hotel ramp up. The city is bracing for an anticipated drop in lodging tax revenue, projecting a deficit of $250,000 in 2026 due to the construction activities at the Edgewater site.

Projected Financial Benefits

Once completed, the new hotel, which is estimated to cost at least $70 million and was purchased by Averill in 2022, poses a potential boost to the local economy. The hotel is expected to generate between $500,000 to $600,000 annually in hotel property taxes, along with an infusion of $2.5 million from the city’s local option tax. This financial impact could aid in offsetting the temporary decline in revenue due to the Edgewater demolition and construction phase.

Hotel Features and Design Plans

The upcoming hotel is set to include 99 hotel rooms, complemented by 31 independently owned units, as well as an events center capable of hosting around 300 people and two restaurants. Initially, the proposal for the hotel featured 181 rooms, but revisions were made to adapt to site challenges and public feedback. This decision indicates an ongoing commitment to address community concerns and ensure a successful project rollout.

The site, situated near City Beach, is viewed as a highly valuable piece of real estate. Averill plans to implement a rental program for the independently owned units, intending to share revenue with unit owners. Furthermore, the project addresses prior parking concerns, assuring the public that there will be sufficient on-site parking despite the initial reduction of 99 parking stalls.

Project Integration and Community Considerations

A critical aspect of the hotel’s design will include a cohesive entrance that effectively integrates the hotel with City Beach and other nearby amenities, ensuring a seamless experience for both hotel guests and the local community. With careful planning and extensive discussions between Averill Hospitality and the city officials, the project has been shaped to meet the evolving needs and expectations of Sandpoint residents.

The hotel anticipates welcoming its first guests in 2027 after breaking ground in 2025, paving the way for a new era of hospitality in the scenic region. As the project moves forward, it emphasizes both economic growth and the enrichment of the community’s tourist appeal.

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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