It cost just over $2 million, but the City of Kelowna says it’s ‘loving’ its latest real estate acquisition.
On Tuesday, the city issued a press release about settling a longstanding legal action regarding the former McDonald’s restaurant site on Water Street near the W.R. Bennett Bridge.
The legal action started in 2007, with Tuesday’s press release titled, “City acquires new lot and we’re lovin’ it.”
According to the city, the restaurant ceased operations in 2007 during road realignment for the new bridge, with McDonald’s claiming land and business losses against the city.
“Since that time, the city and McDonald’s have been working together to resolve outstanding concerns, including remediation of the site,” said the city, adding it has acquired the lot at 1746 Water St. and settled the outstanding legal action.
The city said the 0.725-acre parcel, which borders Mill Creek, was purchased and the legal claims settled for $2.05 million.
According to B.C. Assessment, the property is worth $2.579 million. The land was worth $2.519 million, with the buildings worth $60,000.
“Proactive land acquisition is a key component of the city’s long-range financial and capital planning framework and this site represents a key location in the city’s western gateway,” said Graham Hood, strategic land development manager.
“Coupled with last year’s acquisition of the former Husky station at 380 Harvey Ave., it represents a unique opportunity for future redevelopment.”
Hood added that property assessment, review of on-site security and property remediation is expected to begin immediately and take the better part of this year.
“A plan for lot consolidation and future redevelopment options that leverage the site’s prominence at the entrance to both Kelowna and the downtown core,” said Hood, “will be brought forward for council’s consideration in the coming months.”