SANDPOINT — In the lead-up to the Feb. 4 City Council meeting where the council is set to decide the direction of the City Beach RV Park, city staff have released the proposed funding plan from Averill Hospitality for the space. 

In the proposal, Averill Hospitality said they would be willing to contribute $950,000 to fund the design and construction of an alternate use for the RV park, matching the amount of a grant the city has from the state of Idaho to renovate the park. The company also said they would be willing to pay the city $50,000 annually, as a partial replacement for the RV park’s revenue. 

Community Planning and Development Director Jason Welker has said previously that the park generates around $80,000 a year in net revenue. That money goes directly into the Parks Capital Improvement fund. The staff report does not say where the money from Averill Hospitality would end up.   

In exchange for the money, Averill Hospitality is requesting several elements from the city. Most notably a 30-year rent-free lease of 20 boat slips located at the south end of the RV park site and continued use of the five slips that have been used by the former Best Western Edgewater. 

“The Averills have indicated that access to boat slips is a critical factor in the feasibility of their proposed hotel redevelopment,” the staff report said. “If an agreement could be reached with the city addressing these issues, they would intend to proceed with payment of outstanding permit fees, demolition and construction, with a target opening in early summer 2028.” 

During the meeting between city staff and Averill Hospitality, the company acknowledged that some current slip owners would be displaced if it was granted its request, according to the staff report. Averill Hospitality said the company has a “handshake agreement” to accommodate the displaced slip holders at a private marina in Sand Creek, according to the staff report. 

In addition to the boat slips, the company requested rent-free use of any community event space built at the site using Averill funds for “hotel-related events,” as long as the event was scheduled in advance.  

Averill Hospitality also requested a commitment from the city to improve City Beach Park and the marina and a reconsideration of the $400,000 in parking in-lieu fees the company is set to pay to the city. Those funds were going to be dedicated to supporting the RV park parking improvements, according to the staff report. 

The proposal comes off the back of the city’s Parks and Recreation commission recommending to the City Council that the city proceed with renovating the RV park. A large sticking point for commissioners was the lack of any detail in Averill Hospitality’s prior offer to the city. 

Previously, Averill Hospitality had publicly offered to help the city fund an alternative use for the site and recoup the park’s revenue. However, the specifics of a proposal were not laid out until the release of the staff report. 

“I just feel like I'm in a weird spot, like I'm being forced to decide on an RV park, or whatever other ideas we come up with, and we don't have another idea,” Commissioner Tyler Wagner said at the Jan. 14 meeting.  

The City Council is set to make a decision on the direction of the RV park at its Feb. 4 meeting, which will begin at 5:30 p.m. at City Hall. The full detailed staff report can be viewed under the meeting’s agenda packet at www.sandpointidaho.gov/meetings.