A land swap is proposed between the City of Kelowna and a developer advancing plans for a controversial industrial park.
The proposed deal would see the city give Denciti Developments 9.1 acres of municipally-owned industrial land at 3199 Hollywood Road North, just south o the UBC Okanagan campus. In return, the Vancouver-based firm would give the city 60 acres of its 104 acre site at 480 Penno Road. Most of the 60 acres consists of a golf course.
“This agreement secures Kelowna Springs Golf Course as a distinctive nine-hole course with full-length holes, while preserving natural areas for the community,” Derek Edstrom, a city director, said in a release issued Friday afternoon.
“Kelowna Springs represents more than just a golf course – it’s a community asset,” Edstrom said. “Our goal is to ensure that its legacy continues to serve residents and visitors alike, carefully balancing community recreation, environmental stewardship, and thoughtful city planning.”
The proposed land swap is subject to several conditions, a key one of which is the city agreeing to change the official community plan and zoning for the Penno Road site so Denciti’s industrial development can proceed.
If the conditions are met, the golf course would be transferred to city ownership on March 30, 2026, while the city would transfer the municipal lans to Denciti on Jan. 1, 2028.
The fate of the golf course has been a matter of some controversy for several years.
In January 2022, a previous city council adopted a new official community plan that designated the site for future industrial use, at the request of the former owner. Municipal leaders said at the time that more industrial land was needed to support job creation, economic growth, and industrial activity.
Denciti bought the 104-acre property after that council decision was made. But a hue and cry followed, with critics saying they enjoyed golfing at the course and wanting it to remain as a recreational site.
A new council, led by Mayor Tom Dyas, was elected in October 2022, and the following spring the property’s future use was changed back to recreational. The re-designation, Dyas said, was made to “better reflect community interests and preserve recreational opportunities”.
Last year, the city tried to buy the property, but was rebuffed by Denciti.
After that failed purchase attempt, Dyas acknowledged Denciti was free to submit an industrial redevelopment application for the property despite the OCP’s designation of the site’s future use as recreational.
He added at the time that such a proposal would be evaluated “with the utmost care, ensuring it aligns with applicable policies, processes, and the broader interests of our community”.
In April of this year, Denciti unveiled plans for Penno Road property that would have essentially divided it in half, with 51 acres remaining as the golf course and 55 acres developed into an industrial business park.
By now offering the golf course to the city, including nine acres of trails, water features, and open spaces, Denciti hopes to essentially clear the way for industrial development on the rest of the site, as well as the 9.1 acres it would acquire from the city in the proposed land swap.
The BC Assessment Authority’s website does not recognize the address given in the city’s press release of 3199 Hollywood Road North. That’s because it’s a newly-created lot, carved out of a larger municipal property that will eventually become the Central Okanagan’s new bus barns.
The property is at the south side of the roundabout that connects John Hindle Drive, at the edge of the UBCO campus, and Hollywood Road North. The city plans to connect the two existing stubs of Hollywood Road in 2027. Denciti’s new property would thus have excellent access to Highway 97, UBCO, Glenmore, and lands to the south.
Denciti is holding a public information session on its proposal at the Kelowna Golf Springs clubhouse on Nov. 20 from 6-8 p.m. City council is expected to consider the OCP and rezoning applications for the company’s retained lands early next year.
A public hearing will be required, so interested members of the community can give their views before council makes a decision.