The Penticton & Wine Country Chamber of Commerce is calling for more housing solutions as dozens of low-income residents could be displaced by redevelopment.
Penticton City Council voted last week to restore the original zoning at the El Rancho property along Westminster Avenue West to allow a strata hotel.
“I’ve lived here for four years now all together and every year since I’ve been here, they’ve said they are going to rip it down, tear it down,” said El Rancho Motel resident Nora Campbell.
“Well, I think this is the end of this place. But like I said, where are we going to go?”
The property went through a rezoning process back in 2022 and was changed to high-density residential.
However, new provincial short-term rental regulations forced the property’s owner to change plans. At this time, the owner requested the property be rezoned back to tourist-commercial, with a site-specific allowance for long-term residential use.
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“What we’re finding is that, because Penticton was forced to get rid of approximately half of their short-term rentals with the new regulations, all that demand is now shifting back to commercial accommodators, primarily hotels,” said Penticton Chamber Executive Director Michael Magnusson.
“So, the El Rancho is applying right now with the city to be rezoned to build a hotel.”
Magnusson says although the Chamber is on board with the development it has significant concerns about the displacement of the current residents.
The Chamber sent a letter to the Ministry of Housing and B.C. Housing to ensure that potential development does not displace residents in affordable rentals.
“We’re trying to get ahead of this because we know that development’s going to happen eventually,” said Magnusson. “You can make an eviction period one month, two months, three months, one year. But if there’s nowhere for these people to move, we’ve really done a disservice to the residents of our community.”
Many of the residents live with physical or mental disabilities and would have nowhere else to go.
“A lot of them are just waiting for the hammer to fall and won’t have anywhere to go,” said El Rancho Motel resident Glen Brennan.
“No one can afford apartments around here. A few of the workers here will, but a lot can’t.”
The project will need to return to council one more time to adopt the zoning amendment. A development permit will be needed before any construction can begin.