SANDPOINT — The property has always been a dream property for Montana-based Averill Hospitality.

And, if plans are approved by Sandpoint officials, work on a new hotel where the Edgewater now sits could begin as soon as this fall, pending approval by Sandpoint officials on a requested conditional use permit and variance.

The project is slated to go before the Sandpoint Planning and Zoning Commission on Tuesday of what would be a $70 million, 150-room full-service resort.

At present, the plan calls for the development process to begin this fall, followed by demolition of the existing Edgewater Hotel sometime next year, pre- or post-summer, followed by construction of the new hotel, designed to blend into the historic downtown. Averill estimates it would be a multi-year, $70 million project from start to finish.

Averill Hospitality officials said the conditional use permit and variance are needed due to the way the city code is written. As written, they said the building would need to be built up to the property line, taking it right to the edge of Bridge Street and potentially blocking views of the mountain and lake. However, by seeking a variance, the design can encompass an open entrance that allows access to guests entering the hotel while allowing for a sidewalk to City Beach.

The size of the project triggered the need for a conditional use permit, and the city's setback requirements meant that a variance was needed to fit the project within the City Beach site.

"You could go straight to the edge of Bridge Street and build straight up, and you could technically do that, and then you don't need a variance," said Brian Averill, one of the family members behind Averill Hospitality. "The community impact is that you come down that road and instead of seeing the sky, mountains, and lake, you're going to see this massive building."

As envisioned, the full-service resort would have roughly 150 rooms, a variety of zones and amenities, and a 350-seat, 15,000-square-foot conference center that can be divided into numerous configurations and host multiple events at the same time. A multi-level parking structure sitting behind the hotel would meet parking needs and help address traffic issues on what is a busy Bridge Street.

The full-service resort would offer multiple food and beverage outlets, from an inside restaurant to a more casual walk-up bar and restaurant that would cater to both hotel guests and beach visitors. Averill also envisions a spa, "kid zone," pool, and coffee and retail shops. A concierge would help guests create a package of activities, working with businesses in the community, to help design just the experience that guests want.

"It will just incorporate all of those things into one hotel so you get an experience from a guest perspective of being able to come in and … create great memories."

Averill Hospitality purchased the property in May 2022, working since then to determine whether it wanted to remodel the facility or replace it, and what options to pursue under either scenario. However, the challenges posed by a renovation and the limited number of rooms meant the company would not be able to create the full-service resort or the broader community goals it envisions at the City Beach site.

With the hotel, City Beach, multiple condominium units, and access to the Pend d'Oreille Bay Trail, the plan seeks a cohesive entrance that makes sense to multiple users and groups. That is something his company is completely on board with, Averill said.

"[The city] wanted to make sure everything all kind of play together to make this great arrival experience," he said. "The position of the hotel would be one piece of it, making sure it's set back, which is the variance."

Averill Hospitality had explored the purchase of the property before, but the Cox family, which owned the property, was never interested. Then, a few years ago, Brian Averiall said they heard a rumor that several hotels in the community might be for sale, including the Edgewater. Long interested in the area, they began exploring the options.

"It's kind of funny, but my father tried to buy the property more than once in his career, and he was always interested in coming to Sandpoint and doing this," Brian Averill said. "We feel really fortunate that we can see that vision through."

Since buying the property, Averill said the company has worked to determine what makes sense for the property and what would be the best fit for the community.

"What does the community want," Averill asked. "We have a wonderful opportunity and a wonderful property, but what is the community really looking for and what are their needs?"

Much of what they heard from the community was a revitalized space that could become an iconic location, something that offered much-needed meeting and event space, a year-round economic driver, and a company that was committed to the community and to public spaces.

Averill told Rotary members the project would create an estimated 300-plus jobs and would become an economic driver for the area's economy. A recent Montana study found that for every dollar spent in a room night at a hotel, another $9 was spent in the community, either directly or indirectly.

"The nine-to-one ratio is a staggering number," Averill told the Rotarians. "It's well over $100 million in this case, and that comes at all times of the year."

The company estimates the Sandpoint hotel will generate $500,000 to $600,000 in annual hotel property taxes and another $2.5 million through the city's local option tax.

With various properties in Montana, including Whitefish, Averill said the company is familiar with resort communities and the Western lifestyle. The family-run resort and hotel management company got its start in the mid-1940s when Les Averill created The Flathead Lake Lodge to celebrate Western culture with a personal touch.

The proposed conditional use permit will be heard by the Sandpoint Planning and Zoning Commission on June 18 at Sandpoint City Hall. The meeting begins at 5:30 p.m.

    A view of the entrance to City Beach with the entrance to the proposed Averill Hospitality hotel.
  

    A southwest view of the proposed Averill Hospitality hotel that is planned for the property where the Edgewater is now located.