City Council has the ability to acquire and dispose of any City owned asset. All contracts that we enter into must be brought to the City Council for their consideration and approval.
Once we have no future civic use for a property, the land is determined to be surplus and is available for disposal. The land may be left over from a road project, a park expansion, unconstructed lane or roadway, or any other City project.
There are two main ways that we dispose of land:
Publically On MLS
When a single family dwelling or development parcel is to be sold, we typically list the property with a real estate agent on MLS. This process allows all potential purchasers to review and make offers on the property.
Directly to a purchaser
If we are approached by a potential buyer to purchase excess land that has a limited consumer audience (excess laneway, non-conforming remnant parcel etc.), we can enter into a purchase and sale agreement with a company or individual directly.
Land dispositions include the closure and sale of excess City roadways, lanes and highways.
In general, it should be anticipated that the road closure and sale process take in the range of 4 months (16 weeks), with approximate costs of $3,000 - $5,000, not including the market value of the land being sold. A Property Officer with the City of Kelowna will assist any proponents as they move through the road closure process.
With the exception of provincial highways, the City of Kelowna has care and control of all roadways in the City. This includes laneways, alleys, and any other parcel of land dedicated as roadway via legal survey. The road closure process is defined in various pieces of applicable provincial legislation, including the Community Charter and the Local Government Act.
Stage 1 – Circulation (2 weeks)
- Road closure area is defined and confirmed.
- All internal / external departments are notified of proposed road closure.
- Any concerns with the proposed road closure are relayed to the proponent.
- All adjacent / affected property owners are notified.
Stage 2 – Contract (3 weeks)
- Appropriate market value of road closure area determined (e.g. appraisal, review of sales comparables, review of assessments, etc.)
- Road Closure Agreement is drafted and executed by the proponent.
Stage 3 – Council Approval & Bylaw (6-8 weeks)
- The Road Closure Agreement is presented to Council for their approval.
- Proponent commissions survey necessary for road closure.
- Road closure bylaw created and first three readings at Council.
- Proposed disposition is advertised as required in the Community Charter.
- Fourth reading and final adoption of road closure bylaw by Council.
Stage 4 – Finalization (3-4 weeks)
- All documents are provided to respective legal parties representing the City and the proponent for finalization of land transfer.
- Documents are sent to Land Title Office for registration.
- Acquisition funds are transferred to the City.
Disclaimer: Timelines are approximate only. Depending on the scope of the road closure, these guidelines may vary significantly.