The owner of a historic Minnesota resort has been charged with arson and insurance fraud more than a year after a fire destroyed the property.
Bryce Campbell, 41, of Two Harbors, Minnesota., was taken into custody last Wednesday in Southfield, Michigan for allegedly setting a fire on Feb. 6, 2024 that resulted in a total loss of the popular Lutsen Lodge. The lodge is located off Lake Superior in northwest Minnesota.
Campbell faces three felony counts of arson and one felony count of insurance fraud. He was in custody in Oakland County (Mich.) as of last Tuesday pending extradition to Minnesota.
The Minnesota Department of Public Safety’s Bureau of Criminal Apprehension (BCA) officially announced Campell’s arrest at a press conference on Dec. 4.
“This was a crime of selfishness. Bryce Campbell put his interests above the livelihood of his employees, the safety of the people that were in the building at the time, and the community that were there, and all of the Minnesotans that loved Lutsen Lodge for generations,” said BCA Superintendent Drew Evans.
A criminal complaint released Wednesday paints the picture of a resort owner in financial distress in the weeks and months leading up to the fire.
Campbell, a Canadian citizen, purchased Lutsen in August 2018 for $6.75 million. He later acquired another lodge, Superior Shores Resort, in January 2020 for $14.5 million.
Campbell increased Lutsen’s insurance policy through carrier Auto-Owners Insurance in the years preceding the fire, the complaint says. In August 2022, Campbell increased the policy for the 140-year-old property from $8.5 million to $11 million. In May 2023, the policy increased to $13 million.
By January 2024, Campbell’s businesses were carrying debts of more than $14 million, according to the complaint. Among the debts were $521,000 owed to the property’s previous owner and $467,000 in past due invoices to vendors.
Weeks before the fire, Campell was in discussions with his bank, National Bank Commerce about forbearance, according to the complaint. The bank offered to float Campbell up to $500,000 to keep Lutsen operational until Campbell could find another bank. Campbell responded by asking for $1.1 million. Days later, the bank sent Campbell a default notice.
As January turned into February, Lutsen management expressed concerns that the property wouldn’t be able to meet payroll, the complaint shows.
On Feb. 2, Edward Vanegas, general manager of Lutsen, emailed Campbell, “[Everyone] else is wondering what is going on and what should I do? There isn’t any money available to do payroll next week and that is truly unfair to employees (me included).. .We can’t let employees work with the expectation of getting paid and then not pay them. It goes against my morals as a person and it’s illegal as a company.”