The City of Penticton has officially cancelled its deal with the developer of a three-tower project downtown currently blocked by federal aviation regulations.
The 2009 agreement was terminated with the consent of the developer, P2 Developments Inc.
Dubbed Penticton Place, the 23-storey development would have featured a mix of residential, commercial and office space on the empty lot at 450 Martin St.
However, shortly after the agreement was ratified by council, the city and developer learned the towers violated the Penticton Airport’s regulations limiting buildings on the flight path out of the airport to 10 storeys.
Council voted in 2011 to extend the agreement to allow Transport Canada the chance to review its policy, but have recently heard any changes would likely see the rules tightened, not loosened.
“This would have been a great catalyst project for our downtown,” Mayor Andrew Jakubeit said, lamenting it took this long to get information out of Transport Canada. “Hopefully cancelling this, potentially starting fresh gives an opportunity for that vacant land to get some attention.”
The lot will revert to C5 zoning, which allows buildings 10-12 storeys in height.
As a part of the terminated agreement, the city will refund the developer $150,000 that was earmarked for a downtown plan. Director of development services Anthony Haddad said none of the money has been spent.
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