Lake Country, B.C., is poised to pay off the remainder of what’s owed on its portion of the Rail Trail recreation corridor.
In a document headed to Lake Country council Tuesday, staff explains that the district intends to proceed with the final payment of $875,000 to the City of Kelowna Sept. 30, putting an end to the agreement struck in 2015.
The railway ceased operation in 2013, and CN sold it to local governments for $22 million in 2015.
In June 2015 the City of Kelowna purchased a portion of the Rail Trail in Lake Country at a cost of just over $2.5 million with the plan for it to be repaid by the district as per a memorandum of understanding.
The district made partial payments to the City of Kelowna in 2018 and in 2021. The remaining $825,000 is to be funded from Parks Development Cost Charges (DCCs) and was included in the 2021 Financial Plan and then carried forward to the 2022 Financial Plan based on estimates at the time.
This payment is the final payment in the acquisition of that portion of the trail from Kelowna, meaning Lake Country will regain 100 per cent ownership.
If the district didn’t pay, it would result in the City of Kelowna continuing to own a portion of this segment of the Rail Trail and the cost to acquire that portion would continue to grow under the memorandum of understanding between the two parties.