The unfortunate closing of the Tolko mill in Kelowna’s downtown north end is set to have a huge effect on the local housing market.
After announcing the mill’s permanent closure in November, Tolko has given no indication as to what will happen with the 39.68 acres of land.
However, experts assume once the property hits the open market, it will be redeveloped, significantly adding more housing options to the area, and likely causing a ripple effect.
“The current mill will need to be decommissioned and some of the land will require extensive remediation,” said real estate agent Ken McLaughlin, a commercial specialist. “But once complete, this large piece of industrial land will see its value rise.”
A report issued by MCL Real Estate Group says BC Assessment has valued the lands at $19.1 million. However, the real estate group said based on other industrial land averages, a more realistic value is closer to $48 million.
McLaughlin says the mill will need to be decommissioned, but “once complete, this large piece of industrial land will see its value rise.”
He added “time will tell what the eventual redevelopment of the Tolko lands looks like, but when it happens, it will be an interesting time in Kelowna’s industrial market.”