City of Vernon buys downtown land

Kelowna, CHBC News : Wednesday, May 30, 2012 5:33 PM

The City of Vernon has paid more than $1.1 million for more land in the city’s downtown but not everyone is happy about the city’s acquisition.  The land and building at 2905 29th Street was purchased from New Delhi Indian Restaurant so the city can connect Highway 6 with 27th Street in the years to come. 95% of the funding will come from the city’s reserve funds.  Amanda Watson from the City of Vernon Transportation Department says the purchase will eventually help prevent the city from becoming grid-locked.  “It’s always difficult, especially now when we have pretty tough economic times and we know that our taxpayers, our residents are probably feeling the pinch,” said Vernon City Councilor Juliette Cunningham.  Complicating the decision is the fact that the work won’t happen for 10 years. “It’s very difficult to make decisions where you tie up that kind of public money for that long without an immediate use for it. I think most of us on city council found the decision difficult,” said Vernon Mayor Robert Sawatzky. In fact, council was not unanimous in support of the plan. Councilor Nicol was not available for comment on Wednesday, however he did oppose the purchase on the basis that it was too much money spent for something too far down the road. The city has recently been acquiring more land downtown. It has already bought the restaurant’s neighbouring buildings, the former Coldstream Hotel and the old Vernon medical clinic. The two latter spaces are currently being used as parking lots.In the meanwhile, the building will be leased back to the restaurant, and the tenants will be required to pay property taxes and the cost of utilities. In the future, the building will be demolished and the area may be converted into parking space until the road upgrades are required.
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 Don Quixote Note: 95% of the funding ($1,045,000) will come from DCC  Reserves. I agreed with Coun. Nicol publicly stated position  that the purchase of this property was premature and also in my view the depletion of our DCC Reserves is ill advised. For these reasons I also opposed the purchase.

P.73  of Annual Report 2011 - 9.46 MB Indicates that our DCC Road Balance as at Dec. 31,2011 is $1,719,000. This purchase will reduce this balance by $1,045,000.