The next stage of the Okanagan’s evolution is at hand as developers focus on transforming older industrial precincts of key cities with projects echoing those of the Lower Mainland.
The largest is Vernon-based Holar Developments’ work to remake the 40-acre former Tolko mill site in Kelowna’s north end into a mixed-use urban community connecting Knox Mountain with the city’s downtown.
“We’re working closely with the city to develop a vision for something that’s the next iteration of Kelowna,” said Mark Marshall, senior vice-president, construction and development, with Holar, the development wing of the Thorlakson family’s Timber Investments Ltd.
“Kelowna’s reached this interesting point where it’s known for its tourism, and its wine industry, and yet … there needs to be jobs and places to live for all those young graduates who are finishing their time at UBCO [UBC Okanagan] and Okanagan College.”
Upwards of 3,500 residential units as well as 225,000 square feet of commercial space could be built on the site over four phases, though the final mix of uses has yet to be determined. A third of the site is also slated for public space and parkland.
The city approved a North End Neighbourhood Plan earlier this year, setting the terms for Holar’s proposal as well as Mission Group’s plans for an adjacent 20-acre property formerly owned by BC Tree Fruits.
The planned retail on Holar’s site reflects an opportunity assessment the city conducted. It will leverage opportunities such as activating the site’s waterfront by connecting the retail to lakeside shopping and food and beverage opportunities. It will also celebrate the Okanagan’s history and culture, creating an authentic local experience with year-round appeal.
This is distinct from what exists in other developments.
“We have had some new shopping centres that have been introduced into our community into the Ponds area in the upper Mission. There’s also been a shopping centre, which has been introduced out in the Black Mountain area,” Kelowna Mayor Tom Dyas said.
The site’s year-round appeal also promises to draw out-of-town visitors, who spent an estimated $1.2 billion in Kelowna last year.
An hour’s drive south in Penticton, the need for affordable new housing for local workers is driving another project.
“There has been a definite slowdown of new construction for market housing, mainly due to the multi-family sector [being] unable to secure construction financing because they’ve been unable to secure the pre-sales required,” said Penticton Mayor Julius Bloomfield.
While the city has three new multi-family rental buildings going up, including an 89-unit student residence at Okanagan College and two market rental buildings with 240 units between them, a housing needs assessment completed last year identified the lack of affordable housing for local workers as a key need.
Health care is one of the biggest employment sectors in Penticton, employing 17.1 per cent of the labour force, followed by retail at 14.6 per cent and construction at 10.1 per cent.
This is where Innovation District, a mixed-use development adjacent to Penticton Regional Hospital, is filling a need.
“The hospital is one of the biggest employment drivers in Penticton, and we’re also on the edge of the industrial lands,” said Rocky Sethi, managing director at Stryke Group, which is undertaking the project in partnership with Tien Sher Group. “We’ve sought to provide housing that people can afford, that young families can actually get into and take advantage of some of the job opportunities that are available in Penticton.”
The first building is set to complete in 2028, with 128 residential units and 7,500 square feet of commercial space.
Similar to Holar’s project in Kelowna, Sethi says Innovation District will deliver a community akin to projects such as River District or the Olympic Village in Vancouver – something the Okanagan has yet to see.
“It’s something I think people are looking for,” he said. “They want to be able to walk out of their front door and hit a coffee shop, meet somebody at a restaurant that they know, at a grocery store that’s nice and convenient to home.”
