Kelowna Construction

[mountainman]

First Capri tower approved at the Council meeting today. The Master Plan has been deferred until Council get a clearer picture of public access to the proposed ice rink on site.

http://www.kelownadailycourier.ca/ne...165bc9355.html

[uzi]

^so when will they start the construction?

[giallo]

^I imagine they'll have to do a pre-sales launch, and see what the numbers are like before a shovel hits the ground.

[KelownaResident]

Kelowna has seen incredible growth in the past 2 years. I doubt many of these recently approved projects will get going this cycle. Kelowna is still a small market and without a significant population size and with enough good year-round jobs is susceptible to the slightest change in the economy or housing policy.

My predictions are One Water St (East Tower), Downtown Hotel, and Brooklyn will be postponed.

[Sheener]

^ I would agree the Westcorp hotel project has played things close to the chest and once a project has been delayed several times (as it has) I wouldn't put it passed them again. On the up side they're less dependent on the market as less than half the structure is residential.
I think both One Water Street East and Brooklyn have a good chance as Mission Group and NADG/Kherkoff seem to have a keen focus on attracting not just local demand but also cashing in on a large exodus out of the lower mainland. Maybe I'm a tad overly optimistic as I'd absolutely love all 3 to go through haha

[KevD]

^^One water Street East is already under construction. The west tower is the shorter one to be built second.
The westcorp tower might be scrapped altogether, at this point I wouldn't be surprised. I've been in Kelowna since the willow Inn days and they've been talking about a highrise there when that Inn was still a functioning place. So it's been 15+ years of 4 or 5 serious proposals with nothing to show for it. Something there is inevitable though. I'd like to see something really unique and iconic.

[uzi]

crane is up at "the Shore" at lakeshore.

[svlt]

Would the speculation tax actually play a serious role in changing the course of some of these developments, or just political scaremongering?

[KelownaResident]

^It most definitely does. I am speaking to realtors who tell me things are softening. Some products seem less vulnerable, e.g. townhomes under 550k, condos that cashflow (such as family or student-oriented well maintained rentals), and land (close to major arterial roads).

The luxury market is the most vulnerable, which is why I think the $1M plus condos would be the first options to be forgone by prospective buyers as they "wait and see". Nobody wants to pay a punitive tax on an already expensive product.

I don't expect a crash, but more so a moderation in the growth of Kelowna. Similar to Vancouver after 2008. Everyone expected a crash, thinking it was inevitably coming, but instead we got a slow but steady appreciation into what it is now.

[Nray]

I agree the Westcorp project has and will continue to move back and forth for years to come before we see something move on the site. As for One Water West and Brooklyn, Mission Group and Kerkhoff play the markets well and assumptions would be that both projects already have a line up for purchase.

One Water East sold thru quickly which means many people did not get the view or floor plan they wanted. So they have an eager group waiting for what One West will provide. I would guess they already have verbal commitments to at least 20% on the project, prior to pre-sale.

As well, Ella sold quickly and those who didn't purchase (for some) was the proximity to the troubles on Leon Ave and while the Brooklyn site is only two blocks away, in city core areas, that can feel like a different district. Again, I feel they already have a pre-sold number they feel is a guaranteed sale on the new project.

[Sheener]

^Agreed. I think several of these projects have established themselves at the right time and at the right price points (Mission Group does particularly well there) but I think the demand will fizzle appropriately for the higher end condos.

I'll try and get some pictures up of some of the low-rise, lower profile projects under construction (i.e. the shore, green square vert)

[240glt]

The Westcorp hotel proposal is definitely exciting but can't help think that they may have trouble executing this one. This development is a little outside their core competency

[Sheener]

https://scontent.fyka1-1.fna.fbcdn.n...ae&oe=5B6BFFFC
Green Square Vert (6 stories) crane up and foundation.

https://scontent.fyka1-1.fna.fbcdn.n...52&oe=5B67D16D
Cambridge House

https://scontent.fyka1-1.fna.fbcdn.n...5a&oe=5B697CE2
Ellis Parc

https://scontent.fyka1-1.fna.fbcdn.n...0d&oe=5B6A7698
Central Green (5 stories)

https://scontent.fyka1-1.fna.fbcdn.n...8d&oe=5B7152AA
The Shore (6 stories)

[giallo]

Thanks for the updates, Sheener. I haven't seen The Shore before;

[DKaz]

I have inside information that Westcorp Hotel is still going ahead.

[KevD]

Originally Posted by DKaz

I have inside information that Westcorp Hotel is still going ahead.

I hope this is the case. I still gotta see a crane on site before I believe it.

[KevD]

"Spec tax delays new hotel"
https://www.castanet.net/edition/new...-1-.htm#224194


Author: Wayne Moore
Uncertainty over just who will be affected by the government's proposed speculation tax, and how they will be impacted, has caused a delay in the sale and construction of Kelowna's $230-million waterfront hotel.

Edmonton-based Westcorp had planned to go to market this summer to sell 44 condo units in the 33-storey hotel on the former Willow Inn site across from Kerry Park.

Based on the success of that sales cycle, construction could have begun in late fall of this year.

Gail Temple, Westcorp vice president of operations, says the speculation tax has put the project in danger.

"That is because we had intended to go to market with those residences this summer. Now, based on the feedback from potential buyers, we know that we cannot go to market this summer because we don't determine this, it's our buyers," said Temple.

"The success of this hotel project being built is entirely dependent on the sale of the real estate."

Temple made the comments after she sent a letter to Premier John Horgan and other ministers within the provincial government sharing her concerns.

While uncertainty in the marketplace has put the brakes on sales, Temple said it hasn't stopped Westcorp from continuing the planning work.

"We are continuing on with working drawings and all of the design work required to get us to building permit. We are not stopping that work.

"It is our intention to build this project. We need our buyers who are now an integral part of this, to move forward as well."

Regardless of what the government decides around the speculation tax in the fall, Temple said they will attempt to sell the condos next year.

"We will be testing our market and finding out. Our hope is that certainty will be a big help. Is it our greatest hope that this tax goes away and it will not be punitive to those Albertan buyers etc., of course we are."

Delays have plagued the luxury hotel and convention centre. Construction was originally scheduled to begin in the spring of 2016.

[Phil McAvity]

^I expect we'll be seeing more developers holding, scaling back or cancelling projects entirely with the GreeNDP in power.

[KevD]

Originally Posted by Phil McAvity

^I expect we'll be seeing more developers holding, scaling back or cancelling projects entirely with the GreeNDP in power.

I think once the speculation tax is actually defined and understood, projects will just make the necessary price adjustments and move forward. Honestly though, this is the only major Kelowna project to be put on hold and I have my doubts that the only reason is the spec tax. Also, I'm not convinced that the libs would have not done something similar, considering they rolled out the foreign buyers tax in the lower mainland. This was the next step, regardless of party. Not saying I agree with it, just saying that all the parties are guilty of "over governing" at times.

[DKaz]

Hm. My information was as of 3 weeks ago so I don't know. Fingers crossed the pre-sales are good. I suspect the speculation tax is really only affecting the high end projects such as this one, but there are people with money moving to Kelowna.