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An artist's sketch of a redeveloped downtown looking west past the fire hall at the intersection of Lawrence Avenue and Water Street.
By Kathy Michaels
City council members who nixed fourth reading of the zoning bylaw aimed at revitalizing Kelowna’s downtown, hinged their decision on concerns that a proposed hotel that will edge into park land.
“It’s always been a matter of principle to me that we not be selling park land,” Coun. Robert Hobson said, at a CD-21 Zone primer held for council yesterday.
“We’re going to get thousands more people living downtown in the next 20 years and they’re going to enjoy those public amenities, so we need them for the benefit of future population.”
Members of the local business community, however, have a different take on what’s going to benefit future Kelowna residents.
They say those who will come to this city will be better off reaping the rewards of economic activity generated by the plan, going so far as to commission a study that focuses on both the short-term and long-term economic impacts of the proposed hotel.
“This report shows the positive spin-offs for job creation,” said Wesley Shields, Kelowna Chamber of Commerce president.
“City Council needs to be aware of the impact the CD-21 Zone has on creating jobs for our community.”
The study reports that the short-term impacts including the multiplier impacts —indirect and induced—associated with the construction phase of the hotel include a total of 485 new jobs. In addition to job creation, this hotel will generate approximately $22 million in gross domestic product and $53 million in economic output during the construction phase.
The long-term impacts from ongoing operations of the hotel include the creation of 229 jobs. In addition to employment, this hotel development will generate approximately $8 million in GDP and $13 million in economic output. Visitor impacts will also be significant as visitors to the hotel will spend an estimated $14 million in the community annually, which will generate $33 million in direct economic output.
The study goes on to note that the hotel market has been strong in this city— other than during the recession— with occupancy levels and room rates have growing over the last decade. Demand, however, has surpassed supply and there isn’t enough meeting space to have the industry grow.
“The proposed hotel would fill a portion of the void in the market,” the study read.
It also aserts that it’s the best locale for a project of that nature, as it’s close to area amenities and demand generators while having good access and visibility.
Other hotels in the city have languished before actualization—such as the Westin-site by Prospera Place— and having a business entity in place ready to build and meet the needs of the community should not be taken lightly, they said.
The study was spearheaded and paid for by the Kelowna Chamber of Commerce, the Downtown Kelowna Association, the Economic Development Commission, Grant Thornton LLP, Quail’s Gate Winery, Pushor Mitchell LLP, Dr. Ronald J. Shupe Inc., Astral Media, Royal LePage Kelowna and Site360 Consulting Inc.
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The last paragraph of this article contains a list of the key groups who are behind CD-21. The only major group that was left out is the Urban Development Institute. These groups would have the public believe that CD-21 is in the public interest when it really is mostly in their financial interest.
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A strong local economy is in everybody’s interest!
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We need a strong local economy that is open for business to ensure a vibrant community for all ages to live, work and play in. I am fully behind CD21 – this plan has taken in all considerations and balanced all interests using a democratic and open process. I encourage everyone to go to the City website to learn more about it and see what it’s all about to cut through the rhetoric: http://www.kelowna.ca/CM/Page1280.aspx
Please continue discussion on the forum: link