SANDPOINT — In a short meeting, Sandpoint’s Planning and Zoning Commission approved a year-long extension for Averill Hospitality's conditional use permit and zoning variance.

All five of the attending commissioners voted to approve the requested extension without discussion after a brief presentation from Bill Dean, Sandpoint’s city planner. The approval keeps the already announced plans for the new lakeside hotel in place, until Averill Hospitality moves to the building permit phase. 

“There has been no submittal for building permits yet,” Dean said. “[Averill] has communicated to us that they are very near to be doing so, but they need this extension to do so.” 

When the CUP and zoning variance were issued in 2024, the commission said that Averill Hospitality must “diligently pursue” the proposed work to keep the permit and variance. Dean said that the company has done that, meeting with the city numerous times for discussion and an extensive design process. 

Dean said that continued revisions are common in a building of this size, and that the city has provided feedback on the revisions based on what has been approved. 

Initially, Averill said that work on the new hotel could begin as soon as fall 2024, but that date was pushed back to summer of this year. At the July 16 Sandpoint City Council meeting, Mayor Jeremy Grimm said that he had spoken to Averill Hospitality and that they were targeting a September start to demolish the existing Edgewater Resort building.  

Currently, the Edgewater Resort is accepting room reservations on its website until Aug. 31. 

Sandpoint is anticipating an estimated $250,000 reduction in lodging tax revenue in 2026 due to the anticipated construction at the Edgewater. Averill Hospitality said in 2024 that they expect the new hotel to generate $500,000 to $600,000 in annual hotel property taxes, alongside $2.5 million through the city’s local option tax. 

Whitefish, Mont.-based Averill Hospitality bought the property where the Edgewater Resort sits in 2022 and said they would be investing at least $70 million into the facility. After construction, the hotel will feature 99 hotel rooms, 31 independently owned units, an events center for around 300 people, two restaurants and other amenities.