The Sandpoint Planning and Zoning Commission voted 4-1 on June 16 to extend Averill Hospitality’s conditional use permit for a large-scale lakeside resort hotel, buying the developer another year to secure financing and move forward on a project that has been years in the making.
The extended permit runs through July 2027, giving Averill Hospitality more time to advance The Point – Sandpoint Lakeside Resort, a 296,250-square-foot development proposed for 56 Bridge Street — the site of the long-shuttered Best Western Edgewater Resort on the shores of Lake Pend Oreille.
Project Scope and Status
The development, as currently permitted, would incorporate guest rooms, condominiums, food-and-beverage operations, and event space. Averill Hospitality first received the conditional use permit in 2024. The permit was later extended into summer 2025, and without Tuesday’s action it would have expired July 22, 2026.
Despite the investment of time and resources, the project has not yet broken ground. The demolition permit for the existing Edgewater structure has lapsed, and Averill has not yet paid the city’s plan check fee, which stands at $200,000. A city review plan deadline falls on June 29, the same date a building permit is also set to expire.
Averill representative Ben McGrann of Actus Projects told commissioners the company remains committed to the original vision. “This is the project we want to do, we just need more time to do it,” McGrann said. He pointed to financing challenges with investors and elevated construction market prices as the primary reasons for the delay.
McGrann noted that Averill has invested roughly $1.8 million in the project overall, with approximately $800,000 of that spent in the past 12 months alone on design, engineering, and consulting work — a figure the company presented as evidence of good-faith progress.
Alternative Concept Floated, No Application Filed
Complicating the picture, Averill approached city officials on May 19 with a scaled-back alternative: remodeling the existing hotel structure, demolishing the restaurant, and building a new restaurant with five floors of condominiums above it. That alternative concept has not moved into any formal application process.
City Planner Bill Dean noted a disconnect between the applicant and city staff in the lead-up to Tuesday’s hearing. “We haven’t had any dialogue with the permit applicants,” Dean said — a statement that raised questions about coordination despite the developer’s claims of active engagement. Averill representatives separately pointed to participation in public workshops and meetings as evidence of their ongoing involvement with the city process.
The commission ultimately extended the CUP without attaching any new conditions, a decision that drew one dissenting vote from Commissioner Scott Torpie. Commissioners Wayne Benner, Mose Dunkel, Ivan Rimar, and Reid Weber voted in favor of the extension.
What Comes Next
With the permit now extended to July 2027, Averill faces several near-term tests of its commitment. The June 29 deadline for initiating the city’s plan review process and the parallel building permit expiration give the company days — not months — to demonstrate tangible forward movement on the original project design.
The $200,000 plan check fee remains unpaid, and no applications have been submitted for the alternative remodeling concept floated in May. Whether Averill pursues the original full-scale development or pivots toward the smaller remodel-and-condo approach will likely shape the next round of discussions before the Planning and Zoning Commission.
In the meantime, the company has scheduled a Beer Fest on the Edgewater lawn for July 5, maintaining some activity at the Bridge Street site while the larger development timeline plays out.
The Bridge Street project remains one of the more closely watched development proposals in Sandpoint, given its prominent lakefront location and the scale of the proposed footprint. As housing affordability pressures across Idaho continue to draw attention — a statewide survey by Sen. Mike Crapo drew more than 5,000 responses highlighting affordability strain — projects that add residential and hospitality capacity in North Idaho carry added weight for local planners and residents alike.