Proposed 'luxury' hotel in downtown Kelowna completely changes direction

A proposed “luxury boutique hotel” in the heart of downtown Kelowna has completely changed directions but will be given initial consideration from city council next week.

On Monday, staff will be recommending support for a site-specific text amendment to increase the allowable building height and density for 1570 and 1580 Water Street.

An Official Community Plan amendment application from Mark Anthony Group was submitted in late March, which proposed a 12-storey, 72-room hotel.

However, that has changed to a four-storey commercial building with the opportunity for a residential suite.

“After preliminary feedback on the form and character of the hotel development and neighbourhood consultation, the applicant informed staff on May 7th 2024 that the application would need to be significantly changed,” says a staff report.

“The potential uses of the building include, but are not limited to a restaurant, wine tasting room, wine shop, urban winery, distillery, urban market, events space, and a residential unit."

City staff and council will be focusing on the OCP text amendment during the may 27 meeting.

That includes increasing the maximum density from an 1.5 floor area ratio (FAR) to 4.0 FAR and increasing the maximum height from three four-storeys.

The report goes on to say that the applicant has been talking with city staff on the condition of the crane onsite and the stalled construction site on the property.

According to the staff report, the applicant has agreed to a “fast-tracked schedule” to expedite the project's reconstruction start date.

Staff say the text amendment application will need to be approved before the development permit can be finalized, which will support the “accelerated” construction schedule.

Should council give the first green light to the text amendment, the proposal would be sent to public hearing for further consideration.