Penticton city council voted unanimously Tuesday evening to officially cancel a deal with developers who had intended to build a 23-floor mixed-use building on Martin Street downtown. (Dustin Godfrey/Western News)

Downtown Penticton towers officially nixed

Council agreed to end the city’s contract with a developer that would have had a 23-floor tower built

The City of Penticton will officially cancel its deal with a developer that was expecting to build a 23-storey, mixed-use building in the downtown.

The building, dubbed Penticton Place – P2 by the developers, would have been Penticton’s tallest, which came with a snag — the height of the building would not have been within Transport Canada regulations due to its proximity to the airport.

The developers originally came to Penticton in 2009 with the proposal, and were given approval for the project, granted they could come to a deal with Transport Canada regarding the height of the building.

Related: Penticton tower deal on the chopping block

When the developers had not begun work on the project by 2013, they were back before council to request an extension to their deal with the city to continue working with Transport Canada and come to a solution.

“The development has not proceeded in the years since the agreement was signed for a variety of reasons — technical and economic,” a staff report on the matter reads. “The owners have now provided the city notice that they no longer wish to proceed with the development as outlined in the agreement and are requesting that the city mutually agree to cancel the agreement.”

Related: Developer seeking a second three-year extension

City council voted unanimously to agree to end the agreement with the developer Tuesday evening.

“This would have been a great catalyst project for our downtown, and that’s unfortunate it’s taken this long for what we hoped would have seen some airport height restrictions, some movement on that,” Mayor Andrew Jakubeit said.

“Hopefully cancelling this, potentially starting fresh, gives another opportunity for that vacant land to get some attention. I think that would be a great anchor for downtown.”

Related: Penticton council approves extension for proposed towers

That included an agreement from the city to pay back $150,000 the developer had provided for downtown planning work as part of the original agreement. But development services director Anthony Haddad said.

“Staff do not believe it would be in the public’s interest to contribute those funds to the developer for this site. The developer entered into the agreement with the risk that the development would not proceed.”


@dustinrgodfrey

dustin.godfrey@pentictonwesternnews.com

Like us on Facebook and follow us on Twitter.

Just Posted

Open houses regarding transit between Penticton and Kelowna

The meetings will be held in Summerland, Princeton, Penticton, Peachland and Osoyoos on Dec. 4 and 5

Third fatality in 24 hours on South Okanagan roads

A vehicle incident closed Highway 3 for five hours Monday night

CONTEST: New year, new you

KimXO has partnered with Black Press Media and Third Space for a brand new contest

Summerland couple donates $30,000 to hospital campaign

Donation will go to medical equipment for the Penticton Regional Hospital expansion

South Okanagan Similkameen leading in referendum ballot returns

Pro Rep group offering Nov. 22 information session

VIDEO: B.C. legislature clerk, sergeant at arms suspended for criminal investigation

Clerk of the House Craig James, Sergeant-at-arms Gary Lenz on administrative leave

Former NHL player and coach Dan Maloney dies at 68

Maloney coached the Toronto Maple Leafs and Winnipeg Jets

Ex-MSU president charged with lying to police about Nassar

Lou Anna Simon was charged Tuesday with lying to police during an investigation

Police looking into two more incidents at private Toronto all-boys’ school

Police and the school have said two of the prior incidents involved an alleged sexual assault

Police aim to prevent retaliation after Hells Angel found dead under B.C. bridge

IHIT confirms Chad Wilson, 43, was the victim of a ‘targeted’ homicide

Otter makes a snack out of koi fish in Vancouver Chinese garden

Staff say the otter has eaten at least five fish

B.C. lumber mills struggle with shortage of logs, price slump

Signs of recovery after U.S. market swings, industry executive says

25% of Canadians still won’t say they use pot, survey says

Statistics Canada poll says Canadians on average were 18.9 years old when they first tried pot.

Canucks’ 50/50 jackpot expected to surpass $1 million

The guaranteed prize for one lucky winner will be $500,000 minimum when Vancouver hosts LA Nov 27

Most Read