City acquires key waterfront properties to support world-class downtown hotel development
News Release
To support the development of a world-class hotel and adjacent marina over the next three to five years, the City of Kelowna recently acquired an office building at 1440-1460 Pandosy Street, a vacant development site and former city roadway at 289 Queensway Avenue and the Kelowna Marina at 210 Bernard Avenue from Westcorp.
“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,” said Mayor Tom Dyas. “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.”
The City has undertaken a comprehensive market analysis and we firmly believe there is national, if not global interest in this premier waterfront hotel site. The intention is to work with Avington Financial Limited, an international strategic advisor in the hospitality and real estate industries, to bring together a major hotel flag, a motivated developer and a quality investment group, to partner with the City of Kelowna to bring the vision to life. The partnership redevelopment process will begin immediately and span the next few years.
Together with significant capital improvements currently going on the downtown waterfront, our soon to be erected signature sign and investment in City Park, this hotel will become a cornerstone of the of vibrancy, employment and economic generation. Supporting Kelowna’s ambition to become a world class event hosting community.
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.
This investment reflects a long-term commitment to economic development, with revenue from the assets being used to offset acquisition costs until a new development opportunity is confirmed. As Kelowna continues to grow, these bold actions contribute to a vibrant community and high quality of life for current and future residents.
The $27.8M purchase is intended to be funded by borrowing funds from the Municipal Finance Authority, with no impact on taxation. Carrying costs associated with borrowing will be funded through asset revenues.
