Lutsen Lodge fire: Owner charged with arson, joked to 'burn it' before the fire

LUTSEN, Minn. (FOX 9) - The owner of Lutsen Lodge has been arrested and charged in connection to the 2024 fire that destroyed the historic resort.

Bryce James Campbell, 41, of Two Harbors, is accused of intentionally setting fire to Lutsen Lodge on Feb. 6, 2024, and filing a fraudulent insurance claim. He's charged with three counts of first-degree arson and one count of insurance fraud. 

Campbell was arrested on Dec. 3 in Michigan. He is currently in custody in Oakland County, Michigan, pending extradition to Minnesota. His court date in Minnesota has not yet been scheduled. 

Lutsen Lodge joked ‘burn it’ days before fire in response to debts

What we know:

Campbell purchased the resort in 2018 and faced financial difficulties leading up to the fire. He allegedly increased the resort's insurance coverage significantly before the incident. At the time of the fire, Campbell's near-due and past-due debts exceeded $14 million, according to charges. 

RELATED: Lutsen Lodge owner ordered to hand over management of another resort after missed payments

Insurance records show on Aug. 8, 2022, Campbell increased the insurance policy for the resort from $8.49 million to $11 million. Then on May 22, 2023, he increased the policy to $13 million.

RELATED: Lutsen Lodge owner speaks out after negative attention on social media

Campbell's phone and Facebook records revealed discussions about financial distress and joking references to burning down the resort, including saying "just burn it" to a Facebook message about money that was owed days before the fire.

In the days after the fire, on Feb. 12, 2024, a colleague messaged Campbell on Facebook, saying, "What are you going to tell them about where you were?" Campbell responded, "Well, I definitely can’t tell them. Especially after everything, can you image if our extra caricular [sic] activities got in the news???" Later in the conversation thread, the colleague messaged Campbell, "My concern is that they track your location through your phone and see you driving by Lutsen at around when the fire started around 12:30." Campbell replied, "Your [sic] stressing me out now."

RELATED: One year later, Lutsen Lodge fire still under investigation

Surveillance footage and phone records placed Campbell near the resort on the night of the fire.

There were no reservations at Lutsen Lodge on Feb. 5 or Feb. 6, 2024.

What they're saying:

Cook County Attorney Jeanne Peterson on Thursday said the loss of the building has "deeply" impacted the Lutsen community. 

"In committing this selfish criminal act, Mr. Campbell considered his own personal benefit over the lives and livelihoods of the people he employed, while at same time destroying a treasured Minnesota landmark," said BCA Superintendent Drew Evans.

State Fire Marshal Dan Krier said in a press release, "Our investigators have worked tirelessly from the start of this case to follow the evidence and bring the public answers. Fire investigation is a complex science and takes time to gather all the facts needed to reach a conclusion. Even in cases like these where no one is injured, arson is not a victimless crime. This community and anyone with connections to this historic resort can attest to that. I’m hopeful these charges will bring those impacted some closure and sense of justice."

Fire gel on water heaters at Lutsen Lodge

The backstory:

Investigators found the fire originated in the basement. Charges say investigators found Swissmar fire gel residue, a fire accelerant, on the water heaters at the resort. Search history records for Campbell's phone show he searched for "Sterno-fuel," "fondue fuel btu" and "swissmar" in January 2024. 

On Jan. 18, 2024, Campbell texted a colleague, "Main water line at Copper froze entire east wing flooded. Just talked them through how to find the city valve at the back to shut it down. So sick of life and floods. Does nothing burn down anymore?" Then, on Jan. 19, 2024, the same colleague texted Campbell, "The new Swissmar gel bottles came in. We did a test. Works great," and Campbell replied, "Good!! Glad they came in after the insurance inspection lol."

Lawsuits against Campbell 

The backstory:

Lutsen Lodge dates back to the late 1800s, built along the shores of Lake Superior and grew to become a destination for generations of families.

Not long after midnight of Feb. 6, 2024, smoke was reported coming from the roof. Soon, the resort was engulfed. By daylight, nothing remained standing but the chimneys. It would take a few days to fully extinguish the smoldering debris.

In the haze of smoke, also a cloud of suspicion. Immediately, stories surfaced of multiple lawsuits against the resort’s owner, Bryce Campbell. Nearby cabin owners, who contracted with Lutsen Lodge to manage their rentals, accused Campbell of owing them thousands of dollars. Former employees sued, claiming they were not being paid. Contractors also sued, claiming they’d never been paid for work on renovations.

What we don't know:

The future of the Lutsen Lodge property is unknown.