Kelowna developer wins fight with city over future road to second Okanagan Lake bridge

An Okanagan developer has won a legal battle against the City of Kelowna paving the way to build housing on land that was designated to one day become a road leading to a second bridge over Okanagan Lake.

BC Supreme Court Justice Briana Hardwick sided with Watermark Developments giving the company the right to build on land that had been earmarked for a potential Central Okanagan Multi-Modal Corridor which would lead to a bridge crossing to West Kelowna.

According to the Dec. 3 BC Supreme Court decision, 13 acres of the land on Academy Way near UBC Okanagan had a "no-build" covenant put on it by the City in 2009. The City's move meant it had options if the roadway – which was first pitched in 1986 – ever came to fruition.

The portion of land with the no-build covenant on it made up about 35% of the entire site, which the developer has built on over the years.

As time passed and no moves were ever taken to build the roadway, the developer wrote to the City asking it to remove the covenant, however, the City always said no.

In 2022, the City of Kelowna released its 2040 Official Community Plan, but this long-range planning document had no mention of a road at or near the site.

The decision said Watermark Developments again wrote to the City and asked to have the covenant removed.

When the City said no, now the fourth time, Watermark took the City to court.

READ MORE: City of Kelowna tried to buy a golf course, but owner holding firm

The developer argued the plan to build the road had been abandoned and it would never be built. It said it was "merely a remote possibility" that had never been planned or budgeted for and even if it was, it may well be abandoned before it was ever built.

The City argued it was keeping its options open and the No-Build Covenants give it more choice moving forward.

However, Justice Hardwick said while there was practical benefit for the City it was based on "speculation" and "possible very long-term" future strategic planning.

"In contrast, the impediment to Watermark (Developments) ability to develop the lands is acute and objectively identifiable," the Justice said.

Ultimately, the Justice granted the injunction to the developer allowing it to build on the no-build site.

The City will also have to pay court fees.

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