Rustic Inn Seeks Permit to Expand Food and Beverage Sales in Two Harbors

Castle Danger Properties II LLC has filed a conditional use permit application with Lake County seeking to expand Rustic Inn operations into an existing structure at 2777 Hwy 61 in Two Harbors to allow the sale of food and beverages, according to a legal notice published in the North Shore Journal in early March 2026.

The application, designated C-26-001 and dated March 6, 2026, was filed under Lake County Land Use Ordinance No. 12. The Lake County Planning Commission, chaired by Michael Hoops, is scheduled to hold a public hearing on the request March 16.

The 10.06-acre property sits in Silver Creek Township and carries shoreland zoning under the North Shore Management Zone designation, classified RC/Resort Commercial with a two-acre minimum. Eight separate parcels make up the site, identified by PIDs 29-5451-32130 through 32175. The legal description spans Outlot 7, 8 and 9 of Government Lot 3 and Outlots 10 and 11 of Government Lot 3, situated in Section 32, Township 54, Range 9.

The permit, if approved, would allow the Rustic Inn to begin selling food and beverages out of a structure already on the property. The application does not specify whether the expansion would include alcohol sales, indoor dining, or takeout service, nor does the public notice detail any proposed construction or renovation scope beyond the use of the existing structure.

The shoreland designation adds a layer of regulatory scrutiny to the proposal. Properties zoned under the North Shore Management Zone are subject to standards governing development near Lake Superior and its tributaries, and any expansion at a resort commercial site on a parcel of this size could require agency review beyond the county's own conditional use process.

Questions or concerns about the application can be directed to Lake County Planning and Zoning at 601 3rd Ave in Two Harbors.