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Former Lutsen Resort Owner Charged with Arson and Fraud in 2024 Lodge Fire

Bryce Campbell, the owner of Lutsen Resort, has been arrested and charged with three felony counts of arson and one felony count of insurance fraud in connection with the fire that destroyed the historic lodge on February 6, 2024. 

Campbell was arrested in Michigan on December 3, 2025, and faces charges in Cook County, Minnesota. 

The Fire and Initial Response

Shortly after midnight on February 6, 2024, Cook County Law Enforcement was notified of a fire alarm at the historic main lodge at Lutsen Resort by the only employee on site, Tyler Cobb. The dispatcher reported that an employee had seen smoke rising from the floor in the main lobby. Eight fire departments, Tofte First Responders, and Cook County Sheriff’s deputies responded.

Despite the efforts, the building was completely engulfed in flames by 6 a.m. The lodge, a classic North Shore landmark, was a total loss. It was built in 1952 (after the first lodge burned in 1949). According to the sheriff’s press release, no guests were in the building, and no injuries were reported. 

The Investigation and Alleged Motive 

At a press conference in St. Paul on Thursday, December 4th, officials announced the outcome of an almost two-year investigation by the state Fire Marshal’s office, the Bureau of Criminal Apprehension (BCA), and the Cook County Sheriff’s office. The case remains active, and further updates are expected as legal proceedings continue. At the time of the fire, Campbell and his jointly owned companies had business debts totaling more than $14 million. They were facing severe financial issues, including an inability to pay their employees. Campbell had increased the insurance policy on the Lutsen Resort lodge to $13 million in May 2023. He filed a claim for a total loss of over $16.5 million in October 2024. Campbell admitted to being at the resort around 11:45 p.m., less than an hour before the fire alarm was reported at 12:24 a.m. Surveillance footage and phone records place him leaving the area shortly after the fire began. Investigators found residue similar to a fire accelerant (specifically, Swissmar Fire Gel, which Campbell had allegedly searched for) near the fire’s origin point in the southwest basement near the boiler room.

One Journalist Stayed on the Story 

Cook County journalist Joe Friedrichs has been reporting on the fire since the early hours of February 6, including live reports on Minnesota Public Radio that morning. The first reporter on site that morning, he reported on developments as the investigation progressed, recording interviews with all the key people. He has contributed articles to the Northshore Journal reporting his findings, even though investigators released very little information during the investigation. 

“The North Shore community should be proud to have a newspaper with the guts to print stories like we did about the Lutsen fire,” Friedrichs said. “All credit to Christine for being willing to print the truth even when it makes people uncomfortable, or strays from the image of our home as being the ‘coolest’ place to live on planet Earth.” Friedrichs, with his story editor Julie Censullo, has produced an audio podcast series titled “The Fire: A North Shore Story” that promises, “A fire burned Minnesota’s iconic Lutsen Resort to the ground. This podcast shares the full story.” You can hear everything from the initial 911 call to interviews with key employees and the BCA’s Evans statement when announcing the charges. You will find the preview and five podcasts, for no charge, online at lutsenfirepodcast.podbean.com.

Campbell’s Tumbling Hospitality Empire 

The charges follow a tumultuous period for Campbell’s hospitality businesses. The resort was purchased in August 2018 by North Shore Resort Co., co-owned by Bryce and his mother, Sheila Campbell (who died in August 2021), for $6.75 million. The purchase was initially seen as a positive continuation of the resort’s legacy, which began in 1885.

After the Lutsen fire, Campbell’s ownership and operation of the Superior Shores Resort in Two Harbors were legally stripped away in July 2024 by a judge. This action was due to severe financial issues and breaches of contract, including a default under a contract for deed for missing nearly $13 million in balloon payments, failing to pay real estate taxes and maintain the property, and canceled insurance policies for non-payment.

Future of the Lutsen Resort Property 

The land where the historic lodge once stood is currently in legal and financial limbo.

The future of the Lutsen Resort property is uncertain and tied up in the legal proceedings against Bryce Campbell. With arson and insurance fraud charges, the property’s insurance claim under the $13 million policy is now highly contentious. The ability for him or his company to secure the insurance payout needed for rebuilding is in jeopardy. The property itself, owned by Campbell’s company (North Shore Resort Co.), is part of a complex web of debt involving millions of dollars. 

The property’s ownership may be challenged in court by lenders or creditors seeking to recover their losses, which could force a sale of the valuable Lake Superior property. This is one of the most likely scenarios. The land itself is incredibly valuable due to its prime Lake Superior location and its status as an established building site. A new hospitality group with sound financial backing could purchase the land and rebuild a resort. Though traditionally a resort, the site could be developed as a mix of townhomes and high-end residential condos, or as a new hotel or resort. A new hotel or resort is the most economically viable option for the location.

Of course, the land is a highly desirable piece of North Shore real estate. Still, its immediate future is in legal and financial limbo until the criminal and civil cases against Bryce Campbell are resolved.

Steve Fernlund
Steve Fernlund
Columnist Steve Fernlund is a retired business owner living in Duluth. He published the Cook County News Herald in Grand Marais at the end of the last century. You may email comments or North Shore news story ideas to him at steve.fernlund@gmail.com. And see more at www.stevefernlund.com.
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