Controversial former McDonald’s property in Kelowna is up for sale
A long-abandoned eyesore at the entrance to Kelowna is going on the market in the hopes it will spruce up a key entrance to the city.
Once the site of a McDonald’s restaurant, the City of Kelowna wants to sell the property in conjunction with the former Husky Gas station near the intersection of Highway 97 with Water Street.
The city’s hope is that they will both be sold together. The asking price is $11.275 million.
“We’re hoping, by taking them out together, we get synergy in terms of the form of development so that we’ll see something that really creates some architectural significance and excellence on those two sites,” Graham Hood, the city’s strategic land development manager, told iNFOnews.ca.
Together, the two sites are almost 2.5 acres in size with the McDonalds site on 1.95 acres.
The current zoning, which is different for each site, allows for commercial and/or residential use up to six storeys. It’s not envisioned that there will be highrises on that south side of the highway.
The restaurant shut down in 2007, shortly before the W.R. Bennett bridge was completed.
McDonald's sued the city two years later, saying the road realignment that went with the bridge blocked entry from Highway 97 and caused significant harm to their business.
READ MORE: Not Lovin' It: Future of abandoned Kelowna McDonald's restaurant remains unknown
The city bought the property at 1746 Water Street in May 2020. Part of the $1.77 million purchase price included the settlement of the lawsuit.
The former Husky station at 380 Harvey Ave. was bought by the city in Aug. 2019 for $4.15 million.
The two properties together were assessed at $6.9 million by B.C. Assessments as of July 2020.
Hood believes the environmental remediation of the Husky site is complete and said the city is waiting for a certificate of compliance from the provincial government.
READ MORE: Kelowna spends millions to keep development away from garbage dump
The McDonald’s building was demolished earlier this year but remediation of the site will continue through 2022. That work is complicated by the fact that there was a gas station there prior to it becoming a restaurant.
Redevelopment of the property isn’t expected to happen until that work is completed.
“The City strategically acquires properties for community use and investment,” a City of Kelowna news release states. “Future development of these two properties is anticipated to enhance the entrance to Kelowna and support the community vision of creating vibrant urban centres, with uses for residents and visitors to enjoy Kelowna’s downtown core.”
There is also the hope that a future development will provide a connection between Water and Abbott streets.
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