Kelowna city council’s takeover of a waterfront boardwalk will not put the dispute to rest anytme soon as Hotel Eldorado tries to block the forced sale.

The hotel filed for an injunction this week, accusing the city of resorting to “bullish bullying tactics” rather than negotiate the repair and reopening of what’s supposed to be a public path.

In a petition to BC Supreme Court, the hotel argues it has tried and failed to negotiate for months until city council, without warning, voted to expropriate the boardwalk itself in July.

“The city refuses to engage further with (Hotel Eldorado) and, instead, opts to bully (the hotel) into doing what the city thinks should happen,” the Aug. 12 petition reads.

Hotel Eldorado said the city’s expropriation was a “draconian” decision to take land from a private owner — and doing so when the city “did not like dealing” with a private owner — would leave democracy “eroded”.

It’s a dispute that dates back more than five years when Hotel Eldorado initially closed the waterfront boardwalk due to health concerns during the COVID-19 pandemic. After a judge sided with the city to have it reopened, it was kept closed because it needed repairs.

In the spring of 2025, the hotel flagged safety concerns on the boardwalk and the city sent engineers to assess the damage. According to the petition, a city staff report compiled on June 5, 2025, confirmed the need for repairs and suggested closing it until they were done.

While the hotel owns the boardwalk and the land below it, its agreement with the city meant that it was obligated to allow public access. A judge had also ordered, however, that the city is responsible for maintenance.

The hotel said it hadn’t received the June 2025 report “until later” but city engineers found the structural instability on the Manteo Resort side “could result in sudden failure” under the right conditions. No repairs were needed in front of Hotel Eldorado and in 2017, it spent more than $337,000 to repair that side, according to the petition.

Both Hotel Eldorado and Manteo, neighbouring properties which share the overall boardwalk, are owned by Argus Properties CEO, Ted Callahan.

The hotel claims the city proposed several dates to start repairs between September and December 2025, but the city had not addressed “key issues” between them. It further argues the city’s public comments about the dispute have served to “mislead” the public.

“The city’s true purpose in secretly passing the (expropriation) is to remove (Hotel Eldorado) from the negotiation table and expunge (Hotel Eldorado’s) legal rights,” the petition read.

The petition seeks to have a judge review the expropriation vote and city council’s decisionmaking process, but it’s not clear when it will be heard.

The city has not responded in court.