Planning Context

Prepared by Aaron Derickson (Indigenous) and Wayne Wilson (Settler)

The City of Kelowna is located in the Okanagan Valley, the traditional unceded territory¹ of the syilx (or Okanagan) people. Of the seven communities² that comprise the syilx nation in Canada, the City of Kelowna neighbours two: Westbank First Nation and Okanagan Indian Band. Although the City and these communities enjoy a stable relationship, in years past, Canada’s federal policies prevented syilx communities from experiencing an equally just history.

• Syilx Pre-contact (Mellennia - 1810)

The Okanagan Valley has been home to the syilx people for more than 12,000 years.³ Time immemorial. According to Syilx Scholar and Knowledge Keeper, Dr. Jeannette Armstrong, the syilx nation “shared eight tribal districts that were very closely interconnected in terms of the different kinds of habitat that they resided in and the unique aspects that provided food and sustenance in those different areas of the syilx territory”⁴.  For example, the syilx oral story of the Four Food Chiefs illustrates key foods the syilx people enjoyed for millennia, two of which are Saskatoon berries and Salmon, perhaps the most visible to Okanagan Residents.

• European Initial Relationship (1811 - 1890)

Direct European contact occurred in 1811 with fur traders,⁵ but the well-established trade networks that syilx people had with neighbouring Indigenous nations had long brought European goods such as fashioned metal tools⁶ and horses that had been introduced in the Okanagan region in the first half of the eighteenth century.⁷ These impacts positively affected syilx people in their trade, and supported their hunting and trapping activities.⁸ During this time, syilx people had a robust and complex economy that was dependent on the natural resources of syilx territory⁹ and on  their established trade and alliance relationships.

The arrival of settlers in the Okanagan Valley, and the colonial economy that began to emerge beginning in the mid 1800s, played a central role in the development and birth of the City of Kelowna. At this time, both syilx and non-syilx people participated in both the settler economy and the syilx economy as equals.¹⁰ Due to the fact that the Okanagan region was not rich in fur-bearing animals, the Hudson’s Bay Company mainly traded with syilx people for horses, potatoes, guiding and packing services.¹¹

In 1860, cattle ranchers and farmers began to take up low-lying land around the Catholic Oblate mission. At the same time, Governor James Douglas met with Interior-Salish leaders and came to an agreement that the Indigenous leaders saw as “tentative” and to be made full through negotiations and compensation - neither of which were ever concluded^{12 13}. What changed this reciprocal and fair relationship was the creation of Federal Indian Act policies that adversely affected syilx communities.¹⁴ This removal from traditional context was a powerful tool in opening the area for pioneers and, contrary to popular belief, this was actively resisted by Indigenous chiefs in the Okanagan¹⁵. Land was unequally dispersed to settlers, and syilx people were relegated to life on the new reservations. They were not allowed to purchase land off-reserve, nor were they given land in the same accordance as settlers. In 1865, the Okanagan reserves were drastically reduced in size by J.C. Haynes, a local Justice of the Peace, who argued the boundaries were unnecessary for the syilx people.¹⁶

• City Inception (1892 - 1945)

In 1892, the townsite of Kelowna was laid out on these unceded syilx lands. With its clear advantage of lake transportation, Kelowna became an economic and cultural hub and the townsite was incorporated in 1905. “Kelowna” is a Nsyilxcen word for a female grizzly - a reference to the previous landowner on which the city was founded, who was called “Kum-a-stoose” or “bear face” by local syilx people.¹⁷

The surrounding landscapes began to change dramatically a few years after incorporation. Between 1904 and 1914, thousands of acres of grazing land, hay flats, and grain fields were planted into symmetric rows of irrigated orchard trees and the entire area turned from brown to green. Industry quickly kept pace with the new agricultural economy, and the city’s north end began to fill with packinghouses, box factories, canneries and more, all of these linked by a web of rail spur lines, sidings, and rail-barge slips. The seasonal rhythms and patterns of the tree fruit industry were quickly established. Through the 1920s and 1930s, Kelowna’s economic, social, and cultural life continued to mature.

At the same time, the syilx population experienced increased isolation. They maintained, however, an important part of the regional economy as key and knowledgeable employees in farming, forestry, and other sectors.

• World War II - present (2020)

In the decades since World War II, the pace and direction of change in Kelowna has shifted dramatically. Transportation improvements, such as the W.R. Bennett Bridge, the Okanagan Connector, and Highway 97C have allowed people to move and goods to flow to, from, and within the region more efficiently. Meanwhile, the “Ellison Field” airstrip that opened in 1947 has grown into Kelowna International Airport, Canada’s 11th busiest airport.

The local economy began to shift in significant ways during this time as well. Kelowna’s industrial base began to diversify, its tourism appeal grew in new directions, and the wine industry began to add a new complexity to both agriculture and tourism. More recently, the high-tech sector has strengthened in new links between the city and distant centres.

The city saw new suburban neighbourhoods and shopping centers being developed. More recently, new neighbourhoods have begun to emerge in the hillsides surrounding the city, while efforts to encourage more growth Downtown and in the other urban town centres began to strengthen. Significant investments were made in parks, recreation centres, cultural facilities and other amenities.

During this time period, WFN (then Westbank Indian Band) was developing their land base as a means of securing economic security for their community. They developed a land use plan, bylaws and engaged in leasing portions of t heir land base. In 1974, syilx people from all seven communities took part in the famous “sit-in” of the district Indian Affairs Office, located in Vernon. Syilx communities wanted to govern themselves, independent from the paternal policies of the Indian Act. In 1987, the syilx people signed the Okanagan Nation Declaration, declaring their sovereignty.¹⁸

• Kelowna Today (2021) - Looking forward

Kelowna continues to act as a regional hub and is expected to grow by approximately 45,000 citizens over the next 20 years. To accommodate this growth responsibly, planning decisions must consider social, economic and environmental factors. By focusing investment into Urban Centers, supporting a variety of transit options, promoting housing diversity and incorporating equity into City initiatives, Kelowna will be set up for success when it comes to addressing future challenges.

Today, the City of Kelowna actively engages with both syilx communities. There are currently four syilx reserves within city limits, three of which belong to Westbank First Nation, and one of which belongs to Okanagan Indian Band. The City of Kelowna committed to engaging with the syilx/Okanagan people and is actively working to build a relationship based on trust, understanding and mutual benefit, one that is built on a foundation that respects and learns from the past while embracing the environmental, social, economic and cultural realities of today.

Referenced documents (citations)
1. The traditional territory of the Syilx-Okanagan people spans an area that dips down across the U.S. border into Washington state, and spans upwards just passed the Arrow Lakes. The City of Kelowna is situated roughly in the middle of this territory.
2. The Syilx nation crosses the 49th parallel and dips down into the Washington state, U.S.
3. The consensus among scholars is that the Syilx Okanagan people inhabited the Okanagan Valley River Basin for 12,000 years, as a conservative estimate (Sam, 2008; Armstrong, Thompson, Teit & Boaz). 
4. Jeanette Armstrong. Interviewed by Lally Grauer, “Reciprocities: Kindness and the Land.” Lake: Journal of Arts and Environment, Faculty of Creative and Critical Studies University of British Columbia Okanagan, 2008.
5. ***
6. ***
7. Fraser, 2007.
8. Thomson, 1994.
9. Turner, Bouchard & Kennedy, 1980
10. OHS, Clement, 1959, p.121
11. Thomson, 1994.
12. The beginning of unceded
13. Thomson, 1994, p.102
14. Thomson, 1994.
15. Armstrong et al. p. 44-66; Thompson, 2007, p. 28-29
16. Thomson, 1994.
17. OHS, Clement, 1959.
18. https://www.syilx.org/about-us/syilx-nation/okanagan-nation-declaration

• Population Projections

From 2021-2041, the City's growth rate will fluctuate depending on levels of economic growth, demographic trends, as well as national and international migration patterns. The projections provided in this chapter guide the land use plan and policies of the 2040 OCP, as well as servicing plans and financial strategies.

BC Statistics projects Kelowna's population will grow at an average annual rate between 1.4 and 2.2 per cent over the next two decades. This will result in the population growing by nearly 50,000 people in a lower growth scenario and up to 85,000 additional citizens in a higher growth scenario. Overall, Kelowna's population is projected to be between 196,000 and 233,000 by 2041 as illustrated in Table 2.1. The various iterations of projections from BC Statistics results in a significant range in population; however, further third-party analysis indicates that Kelowna's population will likely be in the middle of the range, with an average annual growth rate of 1.6 per cent resulting in a population of approximately 207,000 in 2041.  

• Projected Age Distribution

Over the next 20 years Kelowna's population will grow significantly across all age groups. Generally, the demographic composition of the population is expected to be similar between 2020 and 2041. However, Kelowna is projected to see an increase in the proportion of people aged 25 to 64 and a decrease in the proportion of people under the age of 25. This reflects low levels of natural increase and Kelowna's reliance on national migration for population growth. Table 2.2 provides more detailed information. 

• Housing Projections

The Province mandates municipalities to complete a Housing Needs Assessment (HNA) every five years using a standardized methodology. These assessments help local governments better understand current and future housing needs. They identify existing and projected gaps in housing supply by collecting and analyzing quantitative and qualitative information about local demographics, household incomes, housing stock, population projections, and other factors to determine the number of housing units needed to accommodate anticipated growth as well as existing unmet need.

As required by the Province, the 2040 OCP is informed by Kelowna's Interim Housing Needs Assessment, completed in 2024. This assessment, based on the higher BC Stats growth projections, estimated that Kelowna needs 45,000 new residential units between 2021 and 2041. Over 39,000 of these units are to accommodate new growth, while the remaining newly 6,000 units are to address existing unmet needs in the community.

Housing affordability, trends towards smaller households, shifting housing preferences, changing demographics and shifting transportation behavior will influence where these new residential units will go and what form they will take. Collectively, these and other trends are expected to boost demand for multi-dwelling housing units in the Urban Centres and Core Area as Kelowna continues its evolution as an emerging mid-sized city over the next 20 years. This is already being seen in the local housing market. Between 2021 and 2024, 68 per cent of the building permits issued were for apartment dwellings, highlighting the significant shift toward more compact housing forms. Kelowna also saw record levels of rental housing construction during that period, with over 2,900 rental units completed.

• 20-Year Average Household Size

2.15 people per new household = (84,763 people / 37,118 new units)

The 20-year average household size is derived using the projections for new housing units to accommodate population growth expected over the next 20 years. It does not include the new units needed to address current unmet housing needs in the community.

• Housing type

Currently, the majority of homes (68 per cent) are in the form of ground-oriented housing, and 32 per cent are in the form of apartment housing. Based on the shift to a more urban Growth Strategy, the 2040 OCP anticipates the demand for apartment housing will continue to increase over the next 20 years. To encourage housing that meets this demand, the 2040 OCP is projecting that 65 per cent of new units (29,400 homes) over the next 20 years will be in the form of apartment housing and 35 per cent (15,600 homes) will be in the form of ground-oriented housing. Table 2.4 provides an estimate of housing unit projections over the next 20 years; however, it is expected that the number of building permits issued will fluctuate based on local real estate and land development cycles. 

• 20-year Housing Distribution

Based on Future Land Use and current zoning, Kelowna has capacity for over 250,000 additional residential units. This simplified approach estimates the maximum potential zoned capacity minus existing residential units. The approach does not account for things like property constraints, age of existing buildings or development potential, all of which could reduce capacity, but it does demonstrate that there is significant capacity in the community to accommodate well beyond the 45,000 units identified in the Housing Needs Assessment. 

The 20-year housing distribution takes these factors into consideration and models the potential of where new housing units are likely to occur. Over the next 20 years, most of the 45,000 new housing units anticipated are expected to be accommodated in urban areas like Urban Centres and the Core Area, which will preserve rural lands outside the Permanent Growth Boundary, allow for cost-effective servicing, reduce car dependency and decrease GHG emissions. Growth in urban areas will mainly take the form of redevelopment as parcels are assembled and redeveloped into townhouses, apartments and towers.

Over the period, 71 per cent of the Kelowna's future growth will occur in the City's five Urban Centres and the surrounding Core Area. Specifically, the growth scenario projects that 38 per cent of new units will be accommodated within the Urban Centres and 33 per cent of the units will be accommodated within the Core Area. The Gateway, Suburban Neighbourhoods and Rural Lands growth strategy districts are expected to accommodate the remaining 29 per cent of new units to 2041. The growth scenario does not introduce any new suburban neighbourhoods beyond what has already been approved. 

Overall, the 20-year Servicing Plan and Financing Strategy are guided by the number and distribution of projected housing units to 2041 shown below and on Map 2.1. The housing distribution targets provided below also guide long-term infrastructure servicing requirements as well as key projects for the City's Transportation Master Plan. These targets have also informed the future land use designations and policies to ensure alignment between planning policy and the City's growth management strategy. The unit targets, provided in Table 2.5, will need to be monitored to inform prioritization of key capital projects as some areas will achieve their growth prior to 2041, while others will see a slower rate of growth.

*Secondary suites are anticipated in all growth strategy districts.