Skip to main content

Boreal Community Media

Owner of Lutsen Resort Was In Building Not Long Before It Was Engulfed in Flames, Sources Say

Nov 07, 2024 07:54AM ● By Content Editor
All photos by Joe Friedrichs


By Joe Friedrichs - November 6, 2024


LUTSEN – Bryce Campbell, the embattled owner of the iconic Lutsen Resort, was in the building within an hour of the fire starting that eventually burned the resort to the ground last winter, according to multiple sources with knowledge of the situation.  

November 7 update: More Details Emerge From Lutsen Resort the Night of the Fire

Campbell entered Lutsen Resort sometime late in the evening on the night of Feb. 5, according to the information shared with this reporter from multiple people with knowledge of the circumstances. The Cook County Sheriff’s Office said crews were notified of a fire alarm at the resort's main lodge before 12:25 a.m. Feb. 6. This timing puts Campbell inside Lutsen Resort less than an hour before the fire is first reported to authorities. The sources, all of whom spoke on a condition of anonymity, made no reference to Campbell being involved in the origins of the fire. In addition, multiple sources confirmed that Campbell initially told investigators that he was not in the building the night of the fire, only to later change that story and confirm that he was. Campbell, according to the sources, changed his story about his whereabouts the night of the fire after his phone was subpoenaed as part of the investigation. Additional evidence also places Campbell inside Lutsen Resort the night of the fire, according to one source, who also spoke on a condition of anonymity.  

This reporter reached out to Campbell to confirm his whereabouts on the night of the fire. He did not respond to multiple requests for comment. 

 The chimney was all that remained after a Feb 6 fire at historic Lutsen Resort.


At least one agent from the Minnesota Commerce Fraud Bureau was in Cook County Tuesday, Nov. 5 as part of the ongoing investigation into the Feb. 6 fire at Lutsen Resort. The Commerce Fraud Bureau, which is involved in the investigation into the fire at the North Shore resort, is a law enforcement agency that combats insurance fraud and “tackles financial crimes.”  In an email sent to multiple officials from the state agency Nov. 4 and 5, this reporter asked if information was shared with MCFB from the Minnesota State Fire Marshal's Office or any insurance companies regarding the whereabouts of Bryce Campbell between 11 p.m. and midnight the night of Feb. 5. Kristen Glazer, the assistant communications director for the organization, said they could not comment on the situation “at this time.”

In a series of conversations and email exchanges Nov. 4 with multiple officials from the State Fire Marshal’s Office, the agency did not verify if they had knowledge of Campbell being in the building within an hour of the fire starting at Lutsen Resort. However, Jen Longaecker, communications director for the Minnesota Department of Public Safety, said the agency adheres to state statutes that “protect investigative data from public disclosure while an investigation is ongoing.”

“We are unable to confirm or deny any details related to this case, including the whereabouts of specific individuals,” Longaecker said. 

In terms of communication with the state’s commerce fraud bureau regarding the Lutsen Resort fire, Longaecker said, “It’s common for multiple organizations, including government agencies and private entities, to conduct their own investigations into incidents” like the fire at Lutsen Resort.  

“When different agencies investigate the same incident, they may share information if it’s relevant and helps advance public safety goals,” Longaecker said. “However, the decision to conduct an investigation — and how to proceed with it — lies entirely with each organization.”

In the aftermath of the fire, a bleak financial picture emerged for Campbell and the two resorts he owned on Minnesota’s North Shore at the start of the year. In addition to Lutsen Resort, Campbell owned Superior Shores Resort near Two Harbors. On July 24, Judge Steven Hanke placed Superior Shores under the management of Kinseth Hospitality Companies, Inc., which is based in Coralville, Iowa, after Campbell reportedly failed to meet the terms of a contract for deed on the property — something Campbell disputed. 

During a July 31 hearing, the company’s executive vice president, Bruce Kinseth, said some of his staff arrived at Superior Shores July 26 following Hanke’s ex parte order and the appointment of the entity as the “receiver,” or temporary managers, of the resort. Upon initial review of the situation, Kinseth described Superior Shores as a “financial disaster.”

According to the order signed this summer by Hanke, under Campbell’s ownership at Superior Shores “association dues have not been timely paid, real estate taxes are delinquent, and payments to various local vendors have not been made,” among numerous other allegations. Kinseth said his team were unable to find any financial statements for the past two years. They also discovered a “tremendous amount” of bills due, Kinseth said, adding that some people Campbell and the resort owe money to came to the property “demanding payment.”

Later, Campbell attempted to get a temporary restraining order in place that would have allowed him at least some control over Superior Shores. On Sept. 17, District Judge Eric Hylden said Campbell needed to put down $280,000 in the form of a bond payment to retain any ownership in the business and have the restraining order take effect. Campbell failed to make the payment by the Oct. 1 deadline, and essentially lost control of the resort. 

In a statement sent to this reporter Oct. 17, Campbell said the missed payment was “one of my hardest decisions to make, weighing the options right down to that very morning the bond was due.” Campbell added that “we decided not to post knowing that even upon successful litigation we'd fail under the unfortunate circumstances we were put in.”

Meanwhile, this reporter spoke with numerous community members, property owners in Cook County, and local businesses who say they are owed significant sums of money by Campbell and Lutsen Resort. Court records support the claims. There are 18 different court cases where people or businesses have sued, or are suing, North Shore Resort Company, an assumed name for Lutsen Resort, which Campbell has owned since 2018. Among them are owners of numerous cabins and condominiums near Lutsen Resort, which had been managed as rentals by Campbell, suing for lack of payment.


 

 

Boreal Ship Spotter - larger view here