Community group questions lease of former RCMP site in downtown Kelowna

A community group in Kelowna is wondering if the city undersold a prime piece of property in the downtown core.

Last month, the city announced that it had leased the former RCMP site on Doyle Avenue, near Okanagan Lake, for 99 years to Rise Commercial Developments for $7 million.

On Thursday, Kelowna Legacy Group issued a statement asking why the city was in a rush to lease the site, calling it a fire sale for a “prime downtown location,” while also demanding more transparency.

The city said as part of its lease, Rise will provide a 6,000 square-foot cultural space within the development, construct a new civic plaza and extend the Artwalk to Doyle Avenue.

“This $4.3-million investment in public space contributes key elements in fulfilling the vision of the Civic Precinct Plan, developed in 2016 following extensive community engagement,” the city said in its press release from June 10^th.

Kelowna Legacy Group says if its numbers are correct, then the city is only receiving $2.7 million for the site, given that $4.3 million of the $7-million sale is going towards public spaces.

“By simple calculation, a 99-year lease for $2.7 million dollars is broken down to be $27,272.00 per year, or $2,272.00 per month for 99 years,” the group said in its statement.

“This would be equivalent to the rent payable for a small office or downtown apartment on a property that could redefine the vision of our downtown core.”

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The city, however, disputed those numbers.

Graham Hood, the city’s strategic land development manager, said the $7 million was for 80 years, with an option to extend for the remaining 19 years at fair market value.

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“I think we have to look at the $7 million that’s coming in as the full return for the property,” Hood told Global News.

“The extension of the art walk and the civic plaza and the community space were all established in the precinct plan that our community and citizens wanted to see delivered.

“And so we’re using those funds to achieve great amenities that we no longer have to go out and figure out a way to pay for, whether that be through direct taxation or other alternative means.”

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Still, the group said “in our opinion, this is a virtual give-away based on an outdated, limited civic precinct plan.”

Founding group member Ken Bessason, a retired former commercial banker and real estate agent, spoke to Global News about the lease.

“What our position is that the city may think they have a good deal at $7 million, but that piece of land, at that site, is priceless for the community,” said Bessason.

“It’s a legacy site that could have been involved in a four-parcel, bigger development (including Memorial Arena, City Hall parking lot and Kelowna Community Theatre).

“We think it’s a missed opportunity, that there wasn’t a greater vision undertaken to consider all those properties together as one.”

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As a result of June’s news regarding the lease, Bessason said the city now has limited options when it comes to potentially redeveloping the three remaining parcels of land as a whole.

“We don’t have to be the Sydney Opera House, but we could have something a small city would be proud of,” said Bessason.

“There’s lots of examples across Canada and the United States, and around the world, of better-looking concert halls than just a box.”

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Bessason said the group is realistic with its goals, but is asking the city to think long term about the site and what will be developed there.

“Precedence has been set,” said the group’s statement. “A past city council choose not to award a Request for Proposal (RFP) in 2003 on the Central Greens land known as the old KSS site.

“Proposals at the time were deemed unsuitable and the city councilors chose not to award this RFP.”

Said Bessason: “We just think this is going to be a higher rental tower than what need be. And I would ask the city ‘Is that the best and highest use for the community for that site?’”