Burned inn's future remains uncertain.

Byline: Jack Moran The Register-Guard

McKENZIE BRIDGE - David Rae knows there are a lot of folks hoping to see the Log Cabin Inn rebuilt.

"That's the feedback we've been getting," Rae said. He and his wife, Diane, have owned the historic riverfront resort since 1991.

But the Raes, who were in Mexico last week when the inn's main lodge burned to the ground, may not be the people who ultimately decide the future of the business.

The couple put the inn property up for sale last fall, and David Rae said they may decide to keep it on the market.

"We're evaluating our options and trying to decide if we can rebuild it ourselves, or find someone else who wants to do it," Rae said. "We've owned it for 15 years, and (putting the inn up for sale) was a personal decision that it was time for us to move on to something else.

"Little did we expect this would happen," he said, adding that he and his wife were "shocked" when an inn employee phoned them to say the building had been destroyed by fire. The couple returned to Oregon earlier this week.

"It really was a surreal thing," Rae said of the fire. "We just couldn't believe it."

Investigators said the March 29 fire started in a laundry room near the rear of the main lodge and engulfed the cedar-paneled structure before an adequate number of fire crews could reach the rural location. Officials do not know if excessive dryer lint or electrical failure sparked the blaze.

The 100-year-old building housed a gift shop, a saloon and one of the most popular restaurants along the McKenzie River. Two of the property's eight guest cabins also were lost in the fire. The destroyed cottages were connected to the main lodge.

The damage was estimated at $500,000, according to state Fire Marshal's Office investigators. Rae said he and his insurance agent believe the actual loss far exceeds that amount, although they have not yet established a firm number.

"It's not even close," Rae said of the estimate. "I know it's a lot more than that."

Before the fire, the entire 6.62-acre property was offered for sale at $2.4 million, according to a listing posted on the Internet through Bend real estate agent Becky Breeze.

While the inn's future is not yet known, Rae said the six cabins undamaged by the blaze are now available for rent. Nightly rates are $80.

Rae said he is soliciting bids from companies capable of clearing the rubble left by the fire.

The only thing saved from the burning building by the lone employee who was inside when the fire broke out was a reservation book. Rae said workers are contacting people who have booked cabins or planned weddings at the inn for later this year, informing them of damage caused by the fire.

Wedding ceremonies, which typically happen in a riverside meadow on the property, can still be held there. But receptions would have to be catered by an outside company, Rae said.

The main lodge was constructed after the original inn, built in the 1880s, burned to the ground in August 1906. The inn was added to the National Register of Historic Places in 2002.