Michigan’s Lakeside Inn Port Austin – Beloved Hotel, Speakeasy and Entertainment Venue That Ended in Flames

The Lakeside Inn in Port Austin, Michigan, served as a courthouse, Prohibition speakeasy, and big band hotspot before its fiery demise in 1967.
Lakeside Inn Port Austin Michigan
Lakeside Inn Port Austin Michigan 1920

Lakeside Inn Port Austin as seen as a 20th century prominent waterfront hotel in Michigan’s Thumb.

The Lakeside Inn Port Austin, Michigan, was a cornerstone of the tip of the Thumb region for nearly a century. Over its long history, this lakeside hotel underwent dramatic transformations – from serving as the county’s courthouse in the 1870s, to gaining notoriety as a Prohibition-era speakeasy in the 1920s, to flourishing as Finzel’s Lakeside Inn entertainment venue in the 1930s-40s, before its tragic destruction by fire in 1967. Below is a narrative account of these key eras in the inn’s history, drawn from historical records and newspaper archives.

1870s – Courthouse Era

The Inn before the Pavillion was added.

In the aftermath of a devastating 1864 fire that destroyed Huron County’s courthouse in Sand Beach (now Harbor Beach), officials chose Port Austin as the temporary county seat?.

The building that later became known as the Lakeside Inn was originally used as Huron County’s courthouse and administrative offices during this period. For about a decade (mid-1860s to mid-1870s), county business was conducted out of this Port Austin building – an arrangement formalized in 1865 and lasting until a new courthouse was established in Bad Axe in 1873?

A later account noted that this structure served for a time as a temporary courthouse for Huron County when Port Austin was the county seat in the early seventies,” underscoring its importance in those pioneer years. By the late 1870s, after county government relocated, the old courthouse building transitioned to private use as a hotel (at one point known as the Williams Hotel) and would eventually be called the Lakeside Inn??

1920s – Prohibition and Speakeasy Reputation

Lakeside Inn Marine Room

By the 1920s, the Lakeside Inn was operating as a summer resort hotel – and during Prohibition it gained a notorious reputation as an illegal speakeasy. In 1927, authorities repeatedly raided the inn to crack down on bootlegging. In fact, four separate raids were conducted in 1927 alone, as federal Prohibition agents and the county sheriff targeted the establishment’s rampant alcohol sales. A news report from late 1927 described the inn being raided “for the fourth time” that year, with officers seizing 24 cases of beer and other liquor on the premises??

Reports of Lakeside Inn Raid 1927 - Sebewaing Blade
Reports of Lakeside Inn Raid 1927 – Sebewaing Blade

The inn’s proprietor at the time, Mrs. Minnie Stinson, and a bartender were arrested during that final raid?

(Mrs. Stinson had even tried to claim she no longer owned the inn, having transferred it to her daughter, Lucille Kahler, likely in an attempt to evade the law?.

In the wake of these violations, authorities obtained a court injunction to padlock the Lakeside Inn – effectively shutting it down as a public nuisance in late 1927. The following year, with the inn’s illicit operations halted, new owners stepped in: in February 1928, Detroit businessman Max Pearlman and his wife purchased the Lakeside Inn from Mrs. Harold “Lucille” Kahler of Wyandotte. The Pearlmans took possession and moved their furniture in, signaling a fresh start for the beleaguered hotel. However, the inn remained dry and low-key until Prohibition’s repeal in 1933 opened the door for legitimate entertainment business once again.

1930s–1940s – Finzel’s Lakeside Inn Era

Lakeside Inn In the At Port Austin Harbor
Lakeside Inn In the At Port Austin Harbor

In the mid-1930s, the hotel entered perhaps its most celebrated phase under the management of Charles H. Finzel. For about a decade, Finzel leased and ran the establishment – rebranding it as Finzel’s Lakeside Inn. Under his direction, the Lakeside Inn became one of Port Austin’s premier entertainment venues and community gathering spots.

Eddie Murrey and his Hut Shut Band of Detroit
Eddie Murrey and his Hut Shut Band of Detroit

The hotel’s large lakeside pavilion (built in 1925–26 as an addition to the original structure) was put to full use as a dance hall and skating rink. Weekend nights often featured live big band performances by notable touring bands, attracting crowds from around the Thumb region. The pavilion earned the nickname “The Fun Center,” as it hosted roller-skating events, billiards and pool games, and jukebox music for young and old alike?

Beach with the Lakeside in In the Background.
Beach with the Lakeside in In the Background.

Finzel also brought in high-profile guests for special engagements – the inn saw visits from dignitaries and entertainers that added to its renown. Notably, Frank Murphy (the local-born politician who served as Michigan Governor in 1937–38 and later U.S. Supreme Court Justice) spoke at the Lakeside Inn during this era, drawing a large audience from the community. Likewise, famed Detroit poet Edgar Guest, known as “the People’s Poet,” gave a reading at Finzel’s Lakeside Inn, an event long remembered by residents for the rare opportunity to see the celebrity in their hometown. Through the late 1930s and into the 1940s, Finzel’s Lakeside Inn was the place for music, dancing, political rallies and civic events in Port Austin. Finzel’s tenure came to an end in the early 1940s – after about ten years at the helm, he retired due to poor health?.

The property was sold by its owner (Bad Axe attorney Paul Woodworth) to new hands in 1940, but the fondly remembered “Finzel’s” era had already cemented the inn’s reputation as a social hub of the community.

Charles Finzel died in 1942 in Ludington Michigan at age 61. His obitruary indicated that he managed hotels in Sebewaing, Bad Axe, Port Austin and Port Hope.

1967 – Fire and End of an Era For Lakeside Inn Port Austin

Clipping - Fire Distorys Lakeside Inn

In the summer of 1967, the story of the Lakeside Inn came to a dramatic and tragic close. In the early morning hours of July 2, 1967, a fire broke out and quickly engulfed the entire Lakeside Inn complex?

The inn’s owner at the time, Leon Rendz, was awakened around 4:00?AM by the barking of his dog and discovered the building in flames?.

The blaze appeared to have started in the tavern/restaurant area and spread through the walls into the attached pavilion – the beloved “Fun Center” that had once housed the dance hall and skating rink. Rendz barely escaped the burning structure (he was later treated for smoke inhalation), and firefighters rushed to the scene. Despite their efforts, the fire was too far advanced to save the old wooden buildings. By daybreak, the Lakeside Inn was completely destroyed, reduced to charred ruins on the lakefront. Investigators could not determine an exact cause of the blaze; it was officially listed as originating from “undetermined” causes?

The estimated damage was substantial – around $50,000 in losses – but the cultural loss to Port Austin was incalculable. The Lakeside Inn had stood as a local landmark for over 90 years, and its destruction marked the end of an era for the community. Longtime residents mourned the loss of the historic building that had been the backdrop to so many memories – from county meetings and wartime dances to first dates at skating parties. “It was like losing an old friend,” one local old-timer was quoted as saying. In the aftermath, the remains of the inn were cleared away, and Port Austin was left without one of its most iconic waterfront institutions. The legacy of the Lakeside Inn, however, lives on in local lore – a testament to the many roles one building played in Huron County’s history, and the fond memories it gave to generations of Port Austin residents.

Sources: Historical newspaper reports from the Huron Daily Tribune and other Michigan archives; Port Austin local history collections.?

Michael Hardy

Michael is the owner of Thumbwind Publications LLC. It started in 2009 as a fun-loving site covering Michigan's Upper Thumb. Since then, he has expanded sites and range of content and established a loyal base of 60,000 visitors per month.

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