Development tax exemption ends
Wayne Moore - Sep 20, 2017 - Biz Releases

Image: City of Kelowna

City hall is redirecting its focus on the revitalization of downtown Kelowna and Rutland.

Several years ago, the city established 10-year revitalization tax exemptions in three downtown zones and Rutland to encourage development with municipal tax breaks.

City planner Ross Soward told council Monday one of the areas in downtown Kelowna has reached its cap and will be removed from the program.

“Over the last few years, we have seen a significant amount of investment downtown. With that, Area 3 has reached the 200,000-square-foot cap. With Central Green Two and Sole Two, we are at about 196,000 square feet,” said Soward.

“That’s a good sign that the incentives have done their job in terms of attracting development. That will help focus investment on areas one and two, where we are continuing to look for more investment in the downtown.”

Soward says the other two downtown areas, which border Doyle Avenue to the highway and Richter to Abbott streets, haven’t seen as much investment.

However, he says, there are some positive signs with the project Shane Worman has been doing on Lawrence for Castanet and also with the recent purchase of a parking lot by Mission Group at the corner of Ellis and Lawrence.

“In terms of Rutland, we have also seen some positive trends,” he said. “There is a revitalization tax exemption application that has come in for a 22-unit student housing project.”

Soward says there has also been an uptick in rental developments in recent years.

While the rental vacancy rate remains below one per cent, Soward says the latest report from CMHC indicates about 1,000 rental units have started since July.

He says the impacts of those developments will be felt in the fall of next year and 2019.


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