KELOWNA — CN and Kelowna, along with its municipal partners have struck a deal on the discontinued rail line between Kelowna and Coldstream.
Kelowna has been leading the charge to purchase the property from CN.
The original asking price was said to be $50 million.
Lead negotiator for the City of Kelowna, Doug Gilchrist, says the deal is worth considerably less than that.
He says the negotiated cost to secure the corridor is a combination of $22-million in monetary consideration and land donation for which the City of Kelowna will issue a charitable donation receipt.
However, the deal has hit a snag.
The Okanagan Indian Band has excluded two parcels of land at the Lake Country/Kelowna border from the deal.
It also remains to be seen whether tax increases will be necessary in order to pay for the deal.
“Local governments are making every effort to minimize the current tax impact in the interest of securing a land asset that would be valued for generations,” officials say.
They say all partners are looking at their funding options including partnerships, grants, municipal reserves or borrowing.
Just last week, the City of Kelowna asked for an extension to make the deal happen.
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