KELOWNA — Kelowna rate payers will not see a tax increase as a result of the CN rail-trail deal but the same can’t be said for Lake Country residents.
After announcing that a deal had been struck to purchase the abandoned rail line between Kelowna and Coldstream, the final figures are in.
The deal is worth $22 million.
Kelowna’s share will be $7.6 million. The money will come from reserves and interim financing, but no tax increase. It will also issue a charitable donation receipt to CN because, according to Kelowna, the land is worth more than the sale price.
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Lake Country’s share is $5.1 million. Half of the sum will have to be borrowed through the Alternative Approval Process which will begin right away. The City of Kelowna says that it will acquire a 50 per cent interest in Lake Country’s share of the land until the District can afford it. Lake Country residents might also see a tax increase.
The other stakeholder in the deal, the Regional District of North Okanagan, is paying $1.9 million with no increase in taxes.
The City of Kelowna says the remaining $7.3 million will come from alternate sources of funding including grants and partnerships.
Some of the rail line is owned by the Okanagan Indian Band. It has been excluded from the deal.
The deal has to be completed within 120 days.
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