The City of Kelowna in British Columbia has completed the purchase of waterfront properties, including the Kelowna Marina and a former hotel development site, in a $27.8 million USD deal with Westcorp.
According to a report by Wayne Moore of Castanet, the acquisition includes the office building at 1440-1460 Pandosy Street, the vacant development site at 289 Queensway Avenue and the Kelowna Marina. The acquisition gives the city ownership of key downtown sites along the waterfront.
The marina includes 68 boat slips for vessels ranging from 22 to 40ft (seven to 12 metres), a 330ft (100-metre) floating pier for public access and a separate pier accommodating seven commercial vessels. The site also offers marine fuel and sanitation facilities and provides rental options, including kayaks, paddle boards, sea doos, ski boats and patio boats.
“Like any purchase, there was a mortgage put on the property through the Municipal Finance Authority which gives us, as a city, some of the best rates that are out there. The property does have revenue through parking, through the marina and rent in other areas,” Mayor Tom Dyas told Castanet.
The revenue generated from the sources is expected to offset the loan, with Westcorp continuing to manage the marina, office building and parking facilities in the meantime.
The development site, which previously included the former Willow Inn Hotel, had been planned as a 33-storey hotel, condominium and convention centre. However, the project faced setbacks, and after the fourth development permit expired, Westcorp decided not to proceed with the project.
To move the project forward, the city has engaged Avington Financial Limited, an international firm tasked with attracting a suitable hotel brand, developer and investment partner. “Through this third-party process, they are going to go out on our behalf on a worldwide level and see who would potentially be interested,” said Dyas, adding that the process could take several years.
Dyas continued: “This allows the city to be in the driver’s seat in terms of what is happening in one of the key areas within our community. We do recognise that area along the waterfront, Kerry Park, the pathways, the marina and everything is key to this community. Looking at establishing a world class destination within our downtown core, we believe is extremely important from an economic prosperity standpoint.”
Images courtesy of Westcorp.
