Kelowna spends $27.8M to buy property for waterfront hotel

The City of Kelowna is spending $27.8 million on waterfront properties to secure them for a hotel development. 

The city bought the Kelowna Marina and nearby properties 1440-14460 Pandosy Street and the vacant lot at 289 Queensway Avenue, according to a press release from the city issued today, Oct 16. 

“Kelowna is one of the fastest growing cities in Canada, and with that growth comes the need to expand our capacity to host major events and welcome visitors to our community,” Mayor Tom Dyas said in the release. 

The plan is for the city to partner up with Avington Financial Limited, a developer and an investment group to build the hotel. Redevelopment is supposed to begin immediately and take a few years.

“In the interim, Westcorp will continue to manage the office building, marina and parking lot as revenue generating assets for the benefit of the city,” the release said.

The money for the land will be borrowed from the Municipal Finance Authority, a co-operative that lends out money to cities around B.C.

“Securing ownership of this strategic downtown waterfront site allows us to advance a long-term vision for a vibrant, world-class hotel and marina in the heart of our city. This investment strengthens our local economy, supports our tourism sector, and ensures that as Kelowna grows, we continue to offer the amenities and accommodations expected of a premier destination city,” Dyas said. 

The city said the loan won’t mean a tax increase as “carrying costs associated with borrowing will be funded through asset revenues.”  

The city hopes that the hotel is going to help the local economy by supporting the tourism industry.