Friday, July 23, 2010

Slowdown halts Hesperia work

Roger Knox - Vernon Morning Star Published: July 22, 2010 6:00 PM

Proposed development work on the Hesperia lands in Okanagan Landing have been put on hold. The Hesperia Development Corporation announced Tuesday that because of the current markets and availability of housing there is little need to proceed with development at this time. “The site will be built-out over the next 15 to 20 years, as demand dictates,” said Hesperia president Ken Stewart in a press release. “We are not currently facing strong demand, rising prices or a shortage of housing so the board feels now is not the time to be investing heavily in infrastructure that may be under-utilized for the next few years.” In February, Vernon city council gave third reading to a bylaw that would rezone 69 acres near Okanagan Avenue to allow for 1,000 units of market and attainable housing. A public hearing on the matter resulted in residents expressing concerns about traffic, density and a rural lifestyle being affected.Some amendments were made to the rezoning bylaw, including density on a portion of the property and the definition of maximum gross floor area.

Vernon Mayor Wayne Lippert said the move makes sense. “When the Hesperia development got going, it was to assist with housing. It was to be a significant affordable component for mid-range housing,” said Lippert. “With today’s economy and real estate market, we don’t have the same pressure and need we did have. Market values have changed and housing prices have changed enough we don’t feel it’s necessary to invest any more money. “Plans are in place to be able to pick it up and go at a later date.” Off-site development along Okanagan Avenue and on-site development of the first of 13 phases will be deferred for the time being. Hesperia will now limit its activities to planning, engineering and design in order to be ready when demand and prices begin to escalate. “Work will continue on completing a master development agreement and obtaining fourth reading from council to approve zoning and the development plan,” said Stewart.

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