'Tainted' process for former RCMP building in Kelowna lets developer start over
The controversial redevelopment of the former RCMP building at 350 Doyle Ave. in downtown Kelowna is being revised, yet again.
City staff, in a report going to council on Monday, say that a company hired by developer Appelt Properties paid an unknown number of people $250 each to speak in favor of the project at a public hearing last year.
“While council would expect that consultants, such as architects, engineers, planners or lawyers, would be compensated by a proponent for their assistance in making a presentation to council, there is no similar expectation of compensation having been paid to members of the public who make presentations,” the report says.
“The direct payment to individuals to speak in favour (or opposed) to an application undermines public confidence in the public process, to the extent of calling into question the validity of the public hearing or meeting.”
It refers to it as a “tainted process.”
The company that made the payments is called JDH Naturals.
According to the staff report, it claimed the payments were “capped” at $250 for things like “lost earnings from time spent away from work, for information sessions, the council meeting, travel, parking and meal expenses.”
But, staff say, everyone got the same $250 payment.
JDH Naturals Inc. was incorporated under the Canada Business Corporations Act in 2020 and has no business licence with the City of Kelowna, the report says.
One of the people who spoke in favour of the project at the July 26, 2022 public hearing was the principal of JDH Naturals.
The whole process started in September 2018 when council agreed it would enter into a long term lease with a developer to build on the 0.87 acre part of the former RCMP site between Kelowna Community Theatre and the Innovation Centre.
It was marketed nationally that fall and was awarded to Appelt (formerly Rise Properties Ltd.).
The original requirement was for an 11-storey tower with a community arts hub and connections to the downtown art walk.
It went back to council, initially, as a 13-storey building that virtually filled the entire allotted space. That triggered a petition of opposition.
READ MORE: Petition triggers redesign of controversial downtown Kelowna highrise
The building was redesigned and went back to council in May 22 as a slimmed down, 25-storey tower that council supported.
That led to the July 26, 2022 public hearing where council approved the new vision based in part on the fact that Appelt promised that 10% of the rental suites would be “affordable.”
But when the project went back to council in November for approval of a housing agreement, they learned that “affordable” meant tiny studio apartments would rent for $2,050 per month.
READ MORE: Controversial downtown Kelowna rental highrise developer painted himself into a corner
Councillors weren't impressed with that price, rejected the agreement and sent Appelt back to redo it.
Now, given that tainted public hearing, council is being asked to rescind the earlier development permit and remove the requirement for a housing agreement.
Rather than look for a new developer or start the whole process over again – as some opponents have called for all along – the recommendation is that Appelt be invited to apply for a new development permit.
READ MORE: Legacy group calls for investigation into 'bait and switch' on former RCMP site
The original agreement also required the developer to start construction by Jan. 20, 2024. The recommendation is to move that to Jan. 20, 2025.
Completion date would also move a year, to Jan. 20, 2029.
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