Averill Hospitality files new plan for City Beach resort hotel

Revamped concept would ‘renovate and modernize’ existing Edgewater with addition of condo tower

By Zach Hagadone
Reader Staff

Averill Hospitality has dramatically altered its plans for a resort hotel at the current site of the Best Western Edgewater Resort, located adjacent to City Beach, pivoting from a previously envisioned 296,250-square-foot development to a much more modest “redevelopment and modernization” of the existing building.

According to documents filed with the city of Sandpoint in pursuit of a conditional use permit, the Whitefish, Mont.-based company wrote that it now plans to renovate and continue to operate the Edgewater structure, which includes 52 rooms, and construct a new five-story wing on the south side of the building to include 27 condominiums.

In addition, the reopened hotel at 56 Bridge St. will feature a lobby bar, coffee venue, retail space, outdoor dining areas, a pool and spa, lawn and terrace space for events and a new restaurant.

Averill representatives did not immediately respond to a request for comment by press time, so it’s unknown what restaurant might be located in the revamped facility.

In its project narrative, the company wrote that the redevelopment will use existing surface parking and retain the current access from Bridge and Dock streets.

“The intent of the project is to preserve and enhance an important hospitality asset while creating a modern, year-round destination that supports tourism, downtown businesses and public use of the city’s waterfront amenities,” Averill wrote. 

“The redevelopment represents a substantial private investment in the City Beach district and provides an opportunity to revitalize an aging property while maintaining its historic role as a gateway between downtown Sandpoint and the waterfront,” the company added.

The alternate concept is a far cry from the prior proposal, which included the demolition of the Edgewater and construction of a much larger building with a mix of more than 120 condos and hotel rooms, in addition to more parking and a robust suite of amenities including expansive indoor event space, two eateries, a gym, pool, recreational equipment rentals, curated retail spaces and more, with an estimated project cost of upward of $70 million.

As Averill stated in its CUP application narrative, “Compared to previous development concepts considered for the property, the proposed alternative concept significantly reduces the overall scale and intensity of development while retaining the economic viability necessary to support reinvestment in the site. 

“The project emphasizes adaptive reuse of existing improvements, efficient utilization of existing infrastructure, enhanced pedestrian connectivity, improved landscaping and public-facing amenities, and architectural improvements designed to complement the character of the surrounding City Beach and downtown environment,” the company continued.

Averill representatives have been repeatedly up front about their struggles with financing and getting the project off the ground, most recently going before the Sandpoint Planning and Zoning Commission in June to seek a continuation of its then-current CUP, which was granted until July 2027. At that time, the company’s demolition permit had already expired, it had yet to pay the city’s plan check fee of just more than $200,000, its building permit was due to expire on June 29 and the main condition for securing approval of the extension was demonstrating that work toward the development’s completion had been “diligently pursued.”

At that time, local company representative Ben McGrann, of Actus Projects, told commissioners that Averill had already invested $1.8 million in the project, including $800,000 on design, engineering and consulting over the previous 12 months. However, he said in June, “We still have pieces of the puzzle that we’re trying to fit in. … There is a lot of components that we’re trying to pull together,” citing financing challenges both from investors and rising construction market prices.

It was hinted during the June meeting of P&Z that a scaled-down, alternative plan could be in the works, but with it would come a full restart of the development process, requiring entirely new permits, public hearings and review. 

Early renderings, available at the “Current Projects” page on sandpointidaho.gov, show about 15,650 square feet of existing hotel space, augmented by 14,855 square feet taken up by the condo tower.

That new portion of the building will require the demolition of the current entryway canopy, as well as the lobby, restaurant and bar, and deck. All the trees located on the grass in front of the hotel would also be removed. 

Following reconstruction, the current entry would become a secondary ingress/egress, with the main entry directly off Bridge Street and accompanied by new accessible parking. 

The check-in desk and associated office space will remain roughly where they are in the current location, as will the main lobby. However, a 1,000-square-foot lobby bar, coffee service area and 3,000-square foot restaurant and associated kitchen will be situated in the south-wing tower, featuring adjoining outdoor dining. An 850-square-foot tiki bar is planned with a patio nearest to the beginning of the beach area, and 1,000 square feet of retail next to the main entrance.

An outdoor pool and hot tub are planned for the space between the hotel and beach, including seating areas, a cabana or landscape feature, pool equipment and rental station, and, finally, an event terrace or lawn on the Dock Street side of the property.

According to Averill’s filings, “The project represents the renovation and modernization of an existing hotel use that has operated on the site for decades and is a recognized component of the City Beach area. The redevelopment improves building aesthetics, site circulation, landscaping and pedestrian connectivity while maintaining the property’s longstanding hospitality function.”