City requires new permits for revised hotel proposal

It’s not quite back to square one for proponents of a downtown highrise who’ve revived the project after years of apparent dormancy.

The City of Kelowna gave all the necessary approvals in 2014-15 for what was then planned to be a 24-storey hotel at the base of Queensway.

But construction never started as the developer, Edmonton-based Westcorp, revised the building plans based on a changing market and the realization that the original design presented some challenges.

“The previous development approvals that were given by the city for the project expired in 2016,” Ryan Smith, a city planning official, said Thursday.

On Thursday, Westcorp officials applied for a new development permit for the revised proposal, with the tower now planned to be 32 storeys with 174 hotel rooms and 49 permanent residences.

“We have to apply for a development permit because the building looks quite different from the previously approved one,” said Gail Temple, Westcorp’s vicepresident of operations.

However, the city still holds $1.2 million in development cost charges that were paid by Westcorp in connection with the original plans.

Because the revised hotel is larger than the one first proposed, additional DCC payments — intended to help the city pay for growth-impacted public infrastructure such as roads, parks and utilities — will be required.

“We’ll reconcile the difference to be paid when the building permit is issued,” Temple said.

The property, bounded by Queensway, Mill Street and Water Street, was rezoned by council in 2014 to permit construction of a major hotel. That rezoning still applies.

But because the new proposal is taller than the first one, a development variance permit will be required in addition to the development permit.

A public hearing will eventually be held so interested members of the community can address council on Westcorp’s plan to build the tower to 32 storeys.

Other main differences from the original plan are the addition of a public restaurant on the 16th floor, an expanded lobby, moving the building farther from Kerry Park and closer to Water Street, and two levels of underground parking.

The project still includes a conference centre, restaurant on the first floor and retail outlets.