Penticton council to look at road closure near events centre for hotel development

Penticton city council will have an opportunity to create more hotel rooms around the South Okanagan Events Centre, the Penticton Trade and Convention Centre and Cascades Casino when presented with a staff report expected at next week’s regular council meeting on June 1.

The report includes a recommendation to close a portion of Alberni Street between Vernon Avenue and Westminster Avenue in order to allow a reconfiguration of lots where a new hotel by the Mundi Group is being built, according to a City of Penticton media release.

The move would allow the proposed Mundi Group hotel complex to move slightly east and closer to the events centre, in addition to allowing a 30 to 45 room expansion of the the existing Hotel Penticton (formerly the Coast Hotel).

Staff believe the proposed road closure and associated land reconfiguration will provide a better design for the future Mundi hotel and strengthen the connection to the PTCC. Likewise, creating expansion space for the Hotel Penticton will support the goal of constructing additional hotel rooms in this area,” Director of Development Services, Blake Laven said in a media release.

Both hotel groups have expressed a great deal of interest in the proposal.

"The proposal helps to provide an appealing entrance from Westminster to the hotel and restaurant, while also giving us enough space to fulfill important needs like parking. Without the proposed changes, the project would have a much less appealing layout attempting to configure to the dimensions of the existing lot,"  Mundi Hotel Group President, Ron Mundi said in a media release.

The proposal coming before council would see the closed portion of Alberni Street added to the land being purchased by the Mundi Group in exchange for a small westerly portion of the site and some additional works to facilitate the road closure.

The city would also provide a small piece of land to the Penticton Hotel for its expansion plans for a cash payment of $265,000.

If supported by council, the move would allow the Mundi Group to build a 100 to 110 room hotel with a fitness centre, pool and hot tub along with a 100 seat restaurant with a roof top patio. The building would be comprised of six storeys with a two-storey restaurant in a detached building.

Hotel Penticton would see a new, four storey hotel building consisting of 30 to 45 rooms built to the rear of the current hotel, with extensive renovations to the existing lounge, conference and fitness areas.

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