THURSDAY, AUGUST 20, 2026 SANDPOINT, IDAHO
Subscribe
Local Government

Sandpoint Commission Orders Removal of Signs at Closed Waterfront Hotel

Idaho State Capitol dome

The Sandpoint Planning and Zoning Commission voted unanimously on August 18 to enforce local signage ordinances against a prominent waterfront property that has remained shuttered for nearly a year. The commission’s decision marks the end of an administrative appeal filed by Averill Hospitality, the owner of the Best Western Edgewater Resort and the former Trinity at City Beach restaurant.

The vote compels the property owner to remove exterior signage that city planners determined violates size and height restrictions. Under Bonner County municipal code, signs associated with vacant or unoccupied properties are classified as abandoned if the site remains empty for more than two months. The Best Western location at 56 Bridge Street has been closed since September 2025, well exceeding the statutory threshold for sign removal.

Enforcing Vacant Property Codes

The enforcement action stems from a straightforward application of City Code 9-6-18. The ordinance is designed to ensure that public right-of-way views remain clear and that signage reflects active commercial operations. When a business ceases operations, its advertising structures are expected to be taken down promptly.

City Planner Bill Dean outlined the timeline during the commission hearing. He noted that despite previous discussions regarding the property’s future, no substantial progress had been made toward reopening the hotel or restaurant. The businesses remained shuttered while the dining establishment relocated its operations elsewhere in Sandpoint.

“None of that happened,” Dean told the Sandpoint Reader. “The businesses remained shuttered, the restaurant relocated and the Averills have decided to pursue alternate ideas for their site.”

The commission’s ruling focuses strictly on the physical compliance of the property with current zoning laws. It does not address the broader redevelopment plans currently under review, nor does it penalize the owner for delays in construction. Instead, it addresses an immediate code violation: the presence of non-conforming signs on a dormant commercial site.

Redevelopment Plans Under Review

The sign removal order comes as Averill Hospitality navigates a complex redevelopment proposal for the Bridge Street parcel. The property sits adjacent to City Beach, one of Sandpoint’s most visible waterfront locations. The owner has submitted a conditional use permit for a revised development plan that differs significantly from earlier concepts.

Initial proposals envisioned a massive expansion, including approximately 300,000 square feet of new construction. Those plans featured more than 181 hotel rooms and condominium units. However, the current iteration of the project scales back the scope while maintaining significant vertical growth.

The revised proposal calls for the renovation of existing hotel structures alongside the demolition of the current lobby and restaurant footprint. In their place, developers plan to construct a new five-story condominium tower. The design also incorporates a new main lobby, a bar, an updated restaurant, an outdoor swimming pool, and dedicated event spaces.

Averill Hospitality filed the conditional use permit for this revised proposal in recent months. The permit process requires public review and commission approval, ensuring that the project aligns with Sandpoint’s comprehensive plan and zoning district requirements. The sign code violation is being handled separately from the development review process, though both matters involve the same property owner and site.

Franchise Obligations Remain

A point of confusion for some community members has been the status of the Best Western brand at the location. Although the physical hotel has been closed to guests for nearly twelve months, corporate records indicate that a franchise agreement remains active. McGrann, representing the hospitality group, confirmed that the contractual relationship with Best Western International continues despite the lack of daily operations.

This distinction is important for property owners navigating temporary closures during redevelopment. A closed building does not automatically terminate franchise licenses, which often require separate legal and financial procedures to dissolve. However, local ordinances do not distinguish between active franchises and dormant businesses when it comes to signage compliance. If the doors are locked and the lights are off for more than two months, the signs must come down.

Bill Dean emphasized that the commission’s role in this specific matter was limited to code enforcement. “This really is just about two signs on their site that do not conform to our ordinance,” Dean told the Sandpoint Reader. “They violate the size and height limitations.”

What Comes Next

The immediate next step for Averill Hospitality is the physical removal of the violating signage. The commission’s order provides a directive for compliance, though specific deadlines for demolition are typically set by the city building department during the follow-up phase.

Parallel to the sign removal, the conditional use permit for the revised hotel and condominium project will proceed through the standard public review process. Sandpoint residents and business owners will likely see further presentations regarding the five-story tower and its impact on the waterfront corridor. The commission must determine whether the new density and height are appropriate for the zone before granting final approval.

For now, the Bridge Street property remains a blank canvas of sorts. The closure of the restaurant and hotel has shifted the dynamic of that block, removing a long-standing destination from the downtown area. Whether the site returns as a mixed-use residential and hospitality complex depends on the outcome of the pending permit application. Until then, Sandpoint’s code enforcement division will ensure that the streetscape reflects the current reality of the property: closed, quiet, and awaiting a new chapter.

The intersection of zoning compliance and large-scale redevelopment is common in growing Idaho communities like Sandpoint. Local governments must balance support for private investment with the need to maintain orderly development standards. The August 18 vote reinforces that even major projects are subject to baseline municipal rules, particularly those governing public visibility and property maintenance.

Share this story:FacebookX

Get Bonner County News in Your Inbox

Free local news updates. No spam, unsubscribe anytime.