Revised Proposal Abandons Major Demolition in Favor of Targeted Upgrades
Averill Hospitality has filed a new conditional use permit with the City of Sandpoint for redevelopment of the Best Western Edgewater Resort at 56 Bridge Street, marking a significant shift from the company’s previous vision for the waterfront property adjacent to City Beach.
The updated plan abandons a sweeping demolition-and-rebuild concept that would have topped 296,000 square feet and replaced the existing structure with more than 120 hotel rooms and condominiums. Instead, Averill now proposes to retain and renovate the current 52-room hotel while adding a five-story condominium tower containing 27 units on the property’s south side.
The revised approach reflects a more measured development strategy that preserves the existing Edgewater building while introducing new residential and commercial components. The proposal includes a lobby bar, coffee venue, retail space, outdoor dining areas, pool, spa, event lawn and terrace, and a restaurant—though the restaurant operator has not yet been identified. A tiki bar is also part of the planned amenities.
Design Changes and Structural Details
The existing hotel space encompasses approximately 15,650 square feet. The new condo tower would add 14,855 square feet. Supporting commercial spaces include a 1,000-square-foot lobby bar, a 3,000-square-foot restaurant with kitchen, a 1,000-square-foot retail area, and an 850-square-foot tiki bar.
Site improvements will utilize existing surface parking while maintaining access from both Bridge and Dock streets. The project requires demolition of the current entryway canopy, lobby, restaurant, bar, and deck areas, along with removal of front lawn trees. The secondary entry will become the new primary access point on Bridge Street, though the check-in desk, office space, and main lobby location will remain unchanged.
Financial Investment and Permitting Timeline
Ben McGrann of Actus Projects, representing the development team, indicated that Averill has invested approximately $1.8 million in the project overall, with $800,000 spent on design, engineering, and consulting work during the previous 12 months.
The Planning and Zoning Commission approved a continuation of Averill’s conditional use permit through July 2027 at a June meeting, providing the company with additional time to advance the proposal. However, the developer faces pressure on multiple fronts: a demolition permit has expired, an outstanding plan check fee exceeds $200,000, and a building permit is scheduled to expire on June 29.
McGrann acknowledged the complexity of moving the project forward, stating that the team is “trying to fit in” remaining pieces and pull together “a lot of components.”
Shift From Earlier Ambitions
The revised proposal represents a stark departure from Averill’s earlier vision, which carried an estimated cost exceeding $70 million. That previous plan would have fundamentally transformed the site through wholesale demolition and reconstruction, a scale of work that appears to have proven impractical or economically challenging.
Averill Hospitality, based in Whitefish, Montana, has focused the new application on what appears to be a more feasible path forward—one that leverages the existing hotel structure while still delivering mixed-use development to the City Beach area, a key commercial and recreational zone in Sandpoint.
The scaled-back approach suggests the developer has recalibrated expectations based on market conditions, permitting constraints, or financial realities encountered since the initial proposal. Whether the revised plan will move more smoothly through the approval process remains to be seen, though the retention of the existing hotel structure may reduce some of the engineering and regulatory hurdles that accompany large-scale demolition projects.