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Former mill in Kelowna assessed at $19M, but ‘realistic value’ is $48M: Real estate report

A view of Kelowna’s downtown north end, including the now-closed Tolko mill along Okanagan Lake. Google Maps

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.

READ MORE: Indefinite shutdown at Kelowna lumber mill to become permanent: Tolko Industries

“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.”

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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.

Click to play video: 'Tolko mill workers forced to make tough decisions in wake of indefinite mill shutdown in Kelowna' Tolko mill workers forced to make tough decisions in wake of indefinite mill shutdown in Kelowna
Tolko mill workers forced to make tough decisions in wake of indefinite mill shutdown in Kelowna – Oct 15, 2019

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.”

Click to play video: 'Growing calls for government help for floundering forest industry.' Growing calls for government help for floundering forest industry.
Growing calls for government help for floundering forest industry – Sep 13, 2019

 

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