COEUR d'ALENE — A proposal to construct a new hotel, restaurant, bar and convenience store at Carlin Bay Resort has divided residents on the east side of Lake Coeur d'Alene.

County commissioners will hold a public hearing tonight at 6 at the Administration Building, 451 Government Way. Carlin Bay Resort, LLC, is seeking a conditional-use permit to allow modification and expansion of the existing commercial resort.

The Carlin Bay proposal on 5.3 acres at 33917 S. Highway 97 seeks to remove the existing restaurant and bar. It would allow construction of a new hotel with a maximum of 24 rooms and not exceeding four stories; restaurant; bar; and convenience store. It also seeks to remove the existing eight cabins and replace them with eight new cabins.

Residents are divided on the plan, as many who submitted written comments believe it is not compatible with the rural nature of Carlin Bay. The majority of the comments submitted to the county are in opposition to the proposal.

"Not only does a four-story hotel not belong in the small rural community of Carlin Bay where it obviously obstructs views of previously built homes, but it also creates more traffic, noise and congestion on an already overloaded highway," a letter from Jack and Barbara Dorrell states. "Carlin Bay is not Lake Tahoe."

The letter states it is one thing to maintain and improve upon existing businesses, but a four-story hotel is "visually out of place."

But Robert Johnston said he feels comfortable that the business owners want to keep the area safe, noise at respectable levels and be supportive of the water life around Carlin Bay.

"The only members of the community who find the Lodge at Carlin Bay not to their liking are the ones who have failed to interact with the lodge or fail to participate with what it has to offer," Johnston said. "It will be a symbol of the right way to growth, an example of how to serve the local community and serve the larger interests (of the county, state and region)."

In the project narrative, planning consultant Rand Wichman wrote that the new restaurant, bar and convenience store would be comparable to what exists today or has in the past.

"The proposal is in the public interest as it will allow for substantial investment into the property and will greatly enhance the appearance of the property both from the lake and Highway 97," Wichman wrote. "The proposal includes improvements for pedestrian crossing and makes minor changes to improve the function of the adjacent boat launch."

Hearing Examiner Steven Frampton in June recommended that the proposal be approved, stating that it is compatible with the surrounding area, is not in conflict with the county's comprehensive plan and addresses site constraints or hazards.

- A hearing will also be held on Jesse Goetz’s request to amend a conditional zoning development agreement for property south of Post Falls by removing a 10-year expiration date and allowing a maximum density of three homes per acre instead of two, as currently exists. A hearing examiner in May recommended denial of the density request and approval to extend the expiration date another 10 years. The 42-acre site is on both sides of West Riverview Drive south of Post Falls between Greensferry and Highland.

Kelly Hollingsworth is among the neighbors who have concerns about the proposal. Hollingsworth said a U.S. Geological Survey map that shows the property over the aquifer and was earlier entered into the record has been ignored by county officials.

"Obviously this presents due process concerns as well as concerns about protecting our water," Hollingsworth said.

The Greenferry Water and Sewer District also opposes the request.

"We are not in favor because we remain concerned about septic tank impact on our wells," wrote John Austin, the district's manager.

Wichman, Goetz's representative, said the increase in density is comparable to the adjacent platted lots and is being sought to provide greater flexibility for future development.