Waterfront hotel development will include private units
The proposed hotel redevelopment at 56 Bridge St. near City Beach is set to break ground in the summer of 2025 and open in 2027, a representative announced Wednesday.
Photo courtesy OZ ARCHITECTURE
SANDPOINT — A planned redevelopment of the Best Western Edgewater Hotel near City Beach has shrunk from 181 rooms to 99 rooms and 31 independently-owned units, a representative told Sandpoint City councilors during a March 5 meeting.
Ben McGrann, project manager, said developer Averill Hospitality altered the project after encountering site challenges, refining the design and considering public feedback. He added that the 31 private units will be part of a hotel-managed rental program in which the hotel and owners will each receive a portion of revenue from short-term rentals.
“Projects like this on this scale are complex,” McGrann said. “Where we begin is not always where we end.”
The project’s site is considered by many to be among the most valuable pieces of real estate in Sandpoint. Averill Hospitality acquired the property in 2022 and later announced plans to invest upward of $70 million to create a modern destination resort with an events center and two restaurants on the shore of Lake Pend Oreille.
In a June 2024 meeting at City Hall, a representative of the developer estimated the project would generate about $3 million each year in tax revenue for Sandpoint between property and lodging taxes.
The March 5 announcement to reduce the room count comes on the heels of a 99-stall parking reduction for the project announced by city staff in December 2024 that led some residents to express concern that resort guests would spill over into the public lot at City Beach.
McGrann assured attendees of the meeting Wednesday that parking wouldn’t be a problem and said that Averill Hospitality is working with local businesses to reserve off-site parking and operate a shuttle during large gatherings like summer weddings hosted at the events center.
“Our parking plans do not include City Beach,” he said. “We are confident that our on-site parking will adequately serve nightly guests and visitors.”
McGrann added that the developer plans to launch a website in about two weeks that will include additional information and public updates, and that the project will break ground in the summer of 2025 and likely open in the summer of 2027.