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 swiftly moved to a 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 a $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-private relationship with Averill Hospitality.

Before 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 maintained 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 the company's local representative, 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 the public comment period, Averill said the company's proposal offered 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 agreed to match the $950,000 the city would have received from the grant and to provide the city with $50,000 annually to replace the estimated $80,000 in revenue the park generates.  

In return, the company requested a 30-year rent-free lease for 20 boat slips at the south end of the RV park site, continued use of the five slips previously used by the former Edgewater, and additional improvements to City Beach. At the meeting, Averill said the company was not seeking to remove boat slips from the community.

Nearly all public comments at the meeting opposed the Averill proposal and urged the council to proceed with renovating the RV park.

The park became a site of significant controversy following the release in November of a proposal from Averill Hospitality to buy or lease the property from the city. The council rejected the offer at a heated, emotional meeting and scheduled a public workshop to explore other options for the site. 

At the public workshop, several uses, including a public event space, an ice rink, and park renovation, were discussed. Community Planning and Development Director Jason Welker said the group didn’t reach 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, with the renovated RV park ranked highest across all categories, 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 the survey results were more representative of the broader community and that she would quickly move to continue the RV park renovation.