South Perimeter Road

South Perimeter Road is an important connection that will provide a third link in and out of the Upper Mission and better transportation connections for the proposed commercial development and two school sites.
Extending from Gordon Drive to Stewart Road West, South Perimeter Road is identified in the Official Community Plan (OCP), the 20-Year Servicing Plan and Financial Strategy, the 20-Year Major Road Network Plan and the 2030 Infrastructure Plan.
Council approved a proposal in 2015 from Oracle Investments Ltd. to accelerate the design and construction of the roadway.
An agreement proposed with Ponds Ventures Inc., a company affiliated with Oracle Investments Ltd. would see 80 per cent of all future Transportation Development Cost Charges directed towards repayment of $7.6 million construction cost for South Perimeter Road and the $1.66 million construction cost associated with the extension of Gordon Drive. Total project construction costs recoverable by the developer are no more than $9.26 million, with a potential addition of up to $1.5 million at the mutual consent of the parties for roadway components outside of the current project scope. It is anticipated that all funds owing to the developer will be paid within 5-7 years of completion of construction.
As per Section 175 of the Community Charter, a council may, under an agreement, incur a liability that is for more than five years only with the approval of the electors (in the form of a referendum or the Alternative Approval Process (AAP). As such, approval of the electors via an AAP will be necessary prior to ratification of the agreement with the developer.

Alternative Approval Process

The AAP will started on Wednesday, February 14 and finished on Friday, March 16.
The question is as follows:

I am OPPOSED to the City of Kelowna proceeding with the adoption of Bylaw No. 11554 being the South Perimeter Road and Gordon Drive Extension Agreement Authorization Bylaw No. 11554 authorizing the City of Kelowna to enter into a contract with Ponds Ventures Inc., which contract requires Ponds Ventures Inc. to construct the South Perimeter Road and an extension of Gordon Drive, and requires the City to remit to Ponds Ventures Inc. its cost of constructing the South Perimeter Road and extension of Gordon Drive, up to a maximum of $10.763 million, over a term of up to 35 years, with the City’s remittance obligations being funded from existing Transportation Development Cost Charge reserves and Transportation Development Cost Charge revenues collected from future development in the area, as per the Definitive Agreement between the City and Ponds Ventures Inc.

If you approved of the agreement which will see the South Perimeter Road delivered earlier than planned, you didn’t need to do anything.

If you objected to the agreement and qualified as an elector (voter) of the City of Kelowna, you had the option to sign an alternative approval elector response form. Response forms were available online at and for pick-up at City Hall. The signed form needed to be returned to the City Clerk on or before 4 pm on March 16 to be counted.

Project Background

In 2015, community input was sought on the developer’s proposal to reprioritize the road construction.  Through quantitative and qualitative methods including online, a public open house and a statistically significant independent telephone survey, the proposal received community support.
Accelerating construction of the roadway means that developer funds will not be available to complete other DCC road improvements as originally schedule. Delays of approximately six years are anticipated for Lakeshore Road between Dehart and Old Meadows roads, four-laning of Casorso/Bevoulin roads and Dehart Road between Gordon and Lakeshore roads.

Next Steps

The next steps include the completion of a final design as agreed to by the developer and the City. A public information session regarding the AAP was open to the public on Wednesday, February 28. 


Johannes Saufferer
Real Estate Services, Manager