Building permits come in fits, stops

Kelowna builders rushed to submit development plans before higher city fees kicked in, newly released municipal data shows.

But while there was an uptick in total development submissions before February, housing starts have plunged since then because of economic turmoil associated with the COVID-19 pandemic.

Nevertheless, city officials predict a “quick rebound” in construction activity as businesses begin to re-open and an economic recovery gets underway.

“In a recent survey of the local development industry, only five per cent of respondents indicated they would be cancelling projects,” top city planner Ryan Smith writes in a report going to council on Monday.

“Most are either deferring projects or proceeding in a limited manner. Based on the available information at this time, all the fundamentals appear to be in place to allow a quick rebound from a slow first quarter, which was heavily impacted by COVID-19,” Smith says.

From January through March, 219 development proposals — the highest total for the first quarter of any year — were submitted to the city. But Smith says this is because many builders wanted to avoid paying higher development cost charges that kicked in in February.

From January through March, only 127 housing starts were recorded in Kelowna, less than half the 10-year-average for the first quarter.

“The drop in this area is directly related to the impacts of COVID-19,” Smith says.

In an intriguing and unusual preview of upcoming development applications for council’s consideration, Smith lists these projects:

— a nine-storey seniors’ housing project at the corner of KLO Road and Pandosy Street; — a nine-storey hotel in South Pandosy;

— a boutique hotel for the area around St. Paul Street and Clement Avenue, downtown.