Image Credit: Okanagan Indian Band
November 19, 2021 - 4:50 PM
The Okanagan Indian Band has agreed in principle to purchase the O'Keefe Range for $26.8 million.
The 2,300-acre piece of land sits between the City of Vernon and the Okanagan Indian Band and came on the market in August 2020.
According to an O’Keefe Range Lands Purchase Information brochure published Nov. 19, the Okanagan Indian Band council has settled on a purchase agreement for $26.8 million. The land was originally listed for $28.8 million.
Band members will have to ratify the purchase which will go to a vote at the end of January 2022 to decide whether or not to go ahead with the deal.
The purchase agreement gives the band 90 days to get community consent and then another six months to obtain financing to close the deal.
READ MORE: Vernon's O'Keefe Range up for sale at $28.8M
Two methods for financing have been put forward: One is to get the federal government to make a down-payment on the Colonial claim and purchase the land. Part of the O'Keefe Range is currently part of a land claim between the federal government and the Okanagan India Band.
"While (the Okanagan Indian Band) and Canada are getting closer to final settlement, the timing of that is still uncertain. With the final settlement set to be much higher than the purchase price, it makes perfect sense for Canada to ensure we don’t lose the opportunity to obtain this land parcel while it is still available," reads the brochure. "This parcel represents the largest tract of land close to or adjacent to reserve that OKIB has the opportunity to obtain."
The second funding model is to borrow the money from the bank and "quickly" develop a portion of the land to pay for it.
"This option is not as ideal as it means paying interest to the bank, taking away funds that could be spent on programs and services," the band says.
READ MORE: How to inherit a $28M property: The story behind the O'Keefe Range
The brochure points out that 65 per cent of the 2,300 property could be considered suitable for development. Around 300 acres of the land is already designated in the City of Vernon's Official Community Plan for multi and single-family residential homes.
Access to the O'Keefe Range could come from Sierra Road and Blue Jay Road, along with access through The Rise and Turtle Mountain developments.
Only around 20 acres of the O'Keefe Range falls under the Agricultural Land Commission zoning where development is prohibited.
The Okanagan Indian Band is now putting the plan out to its members for feedback.
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