SANDPOINT, Idaho — The Sandpoint City Council voted 6-0 Wednesday night to move forward with its plans to renovate the City Beach RV Park on Lake Pend Oreille, rejecting a proposal from Whitefish-based Averill Hospitality to fund alternate uses for the public space.

After over an hour of public comment, Council made swift work of the vote, discussing the matter briefly before the unanimous decision. Multiple councilors complimented the public for its involvement and dedication to the issue.

"This vote is not necessarily a rejection of collaboration, and I want to remain open to future proposals to respect established boundaries and pursue preserve city assets," Councilor Joe Tate said. "I want to acknowledge the magnitude of the community and the involvement... it makes me really proud to be a resident in my hometown of Sandpoint."

With the acceptance of the $950,000 grant from the state of Idaho, the site must remain an RV park for the next 25 years. Tate added that he hopes to build a healthy public and private relationship with Averill Hospitality.

Prior to the meeting, the city announced it had received an offer from Averill Hospitality, which owns the currently closed Best Western Edgewater hotel in Sandpoint, to fund an alternative use for the site. The company has held firm in its belief that an RV park is incompatible with its plans to renovate the Edgewater into a luxury resort.

Following the council's decision, Brian Averill, co-owner of Averill Hospitality, and local representative for the company, Ben McGrann, declined to comment. The company owns numerous properties in the Flathead Valley, including The Lodge at Whitefish Lake and Firebrand Hotel in Whitefish. 

During public comment portion, Averill said the proposal from the company was a way to offer the community an alternative funding source for the site's use. 

"We were simply trying to provide an alternative funding source so the community could make a decision not based on a financial grant, but what might serve the community best," Averill said.

In the offer, Averill Hospitality offered to match the $950,000 the city would have received from the grant and provide the city $50,000 annually to replace the estimated $80,000 in revenue the park brings in.  

In return, the company asked for a 30-year rent-free lease of 20 boat slips located at the south end of the RV park site, continued use of the five slips that have been used by the former Edgewater and more improvements to City Beach. At the meeting, Averill said the company was not attempting to take away boat slips away from the community.

Nearly all the public comment at the meeting opposed the Averill proposal and asked the council to move forward with renovating the RV park.

The park became a site of much controversy following a proposal from Averill Hospitality to buy or lease the property from the city was released in November. The council denied that offer at a heated and emotional council meeting but scheduled a public workshop to explore other possibilities for the site. 

At the public workshop, numerous uses like a public event space, ice rink and renovating the park were discussed. Community Planning and Development Director Jason Welker said he felt the group didn’t reach a consensus, but a respectful discussion was held. 

The city also released a survey which allowed people to rank uses of the RV park across four categories. According to the staff report, the city received 908 responses, which ranked the renovated RV park the highest across every category, followed by a community event space and a multi-use green space with a playground.  

After the workshop, Councilor Pam Duquette said she was frustrated at the disconnect between the survey and workshop results. She said she felt the survey results were more representative of a broader view of the community and was the one to quickly make a motion to continue with the RV park renovation.