City of Kamloops, B.C. Housing may split costs of $7 million loan in hotel purchase
Kamloops city council will decide on Tuesday whether to borrow $7.15 million for the purchase of the Northbridge Hotel the city has already committed to buy.
Although Mayor Ken Christian said at an October press conference the city was buying the property with funds from the city's housing reserve fund, the funds appear to be sourced from a short-term loan from the Municipal Finance Authority, according to a report to council.
Council authorized the purchase of the Northbridge Hotel at 377 Tranquille Rd. and the adjacent 346 Campbell Ave. properties at a closed meeting, Sept. 21.
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The purchase was later announced at a press conference on Oct. 1, where Christian said the intention is to eventually sell the hotel property to make way for market housing.
The 346 Campbell Ave. property is to be sold to B.C. Housing, which is set for a $3.81 million deal.
According to the report, B.C. Housing is to pay the city no later than June 2023 for the property which now hosts a largely vacant lot with a former liquor store on one side.
That leaves taxpayers to cough up $3.3 million for the remainder of the potential five-year loan after B.C. Housing transfers funds to the City.
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B.C. Housing and the City of Kamloops are still determining what a future development of the 346 Campbell Avenue property will be, according to the report.
The report adds that the hotel will be sold for redevelopment "once the current tenants have been transitioned to other suitable housing options."
Purchasing the hotel has been touted as an opportunity for the City as the North Shore Neighbourhood Plan is under development, and once built, a housing development could be a valuable addition to redeveloping the Tranquille Corridor.
Council will vote on whether to seek the loan at a meeting on Nov. 16.
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