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$6 million bill for new Kamloops homeless shelter

The former Butler RV dealership at 142 Tranquille Road is set to become a homeless shelter until at least 2026 before it's redeveloped.
The former Butler RV dealership at 142 Tranquille Road is set to become a homeless shelter until at least 2026 before it's redeveloped.

A former Kamloops RV dealership on the North Shore is poised to spend the next two years as a homeless shelter, coming with a $6 million bill for BC Housing.

That tally includes $3.5 million to renovate the former office and shop on Tranquille Road, along with $2.6 million in operating costs.

The proposal was divisive with residents both opposed and supportive taking turns at a recent Kamloops council meeting. Opposing voices, many of whom live or work in the neighbouring area, did vary from staunch disapproval to calls for a careful eye on neighbourhood safety.

Ultimately, council approved a permit that would allow BC Housing to operate the shelter for 20 months. Developer and property owner Arpa Investments could extend the lease to a total of four years, but council voted to have BC Housing bring a 20-month progress update before extending the permit from city hall.

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BC Housing plans to open the 44-bed shelter in late-December. With a total $6.1 million budget, that's $138,636 per bed for 20 months.

City funds are not used for the shelter, instead it comes from a provincial initiative called the Homeless Encampment Action Response Temporary Housing (HEARTH) program.

A BC Housing spokesperson was unable to provide specific details about how the $3.5 million construction costs will be spent by deadline, but did say the property "needs some work" and some upgrades will be done.

"These include installing fencing, gates and security cameras for the safety of guests and staff as well as the surrounding community. BC Housing also plans to add storage and adjust the interior layout," read a written response.

Tyler Baker, the Crown agency's director for Interior development, told council there will be construction to add a kitchen, living spaces and upgrades to the heating and cooling systems.

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The remaining $2.6 million will go separately toward the lease and to the operator Ask Wellness for 20 months. The totals for the Arpa lease and the operating contract aren't clear.

Kamloops is the second Interior city to see a shelter approved since the HEARTH program was announced last fall. It's the same initiative that has paved the way for three separate temporary tiny house communities for homeless people in Kelowna.


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