Penticton buys site of Greyhound depot
Former bus depot, purchased for $1.2 million, to be used as parking lot while city decides on long-term plan
Penticton taxpayers are the new owners of the former Greyhound bus depot site, which will be converted into a parking lot while a long-term plan for the property is decided.
Council at its meeting Tuesday unanimously supported a staff recommendation to pay $1.2 million for the package of five parcels on Ellis Street.
Anthony Haddad, the city’s director of development services, said a resolution was passed during an incamera meeting on Nov. 20 to purchase the bus depot property for $1.2 million. The funds will come from the city’s gaming reserve fund.
Greyhound bus service in Penticton — and the rest of Western Canada — ceased on Oct. 31.
The city’s land acquisition policy identifies opportunities when purchase of lands would be beneficial to the community, and the Ellis Street property is located on a prime piece of downtown real estate, said Haddad.
The total amount of land purchased is just under 91,000 square feet. A third-party appraisal of the land obtained by the city and undertaken in November set the land value at $1.275 million, according to Haddad.
“The asking price for the property was drastically undervalued at $850,000 in order to attract multiple bids,” he said.
The final accepted bid by the city equates to just over $66 per square foot, which is comparable to other land values in this area of the downtown core over the past few years, he added.
The site is located at the south end of another city-owned parking lot near the 300 block of Main Street.
“The subject property offered the city a unique opportunity to purchase a valuable site within the downtown core,” said Haddad. “With recent development activity in and around the downtown, in particular along the north portion of Ellis Street, the value of lands downtown will only increase over time.
“The opportunity to gain control of the future of land along the western half along the 100 to 300 blocks of Ellis Street is a unique opportunity for the community moving forward.”
While the long-term use of the land has not been determined, staff has recommended the depot be demolished and the site turned into a large parking lot in the meantime.
Haddad said staff will be forwarding design options for the new parking lot to council in the coming months.