Development a lift during pandemic
Property development has been one of the “bright spots” for the Okanagan economy during the otherwise gloomy days of the pandemic.
“Of course COVID-19 has put some question marks around things, but in general we’re still quite bullish,” said Luke Turri, executive vicepresident of Mission Group.
“We’re invested in the Okanagan and we certainly think that the fundamentals in cities like Kelowna and Penticton are very strong.”
Mission Group has three projects currently under construction in Kelowna, including the 25-storey Brooklyn condominium development on Bernard Avenue, and just recently got approvals necessary for a 75-unit apartment building in downtown Penticton that’s expected to break ground in the fall.
Turri cites a “keen and eager workforce,” plus strong relationships with trades and suppliers, as key factors in the company’s ability to keep going through the pandemic – with all the right safety precautions in place, of course.
“To have our construction sites active, we’ve been very fortunate,” he said. “It’s not at 100% efficiency, but were all working to towards the same goals.”
Highstreet Ventures, which is also based in Kelowna and operates roughly 800 rental units across the province, is similarly undeterred by COVID-19.
The company currently has three projects underway across the Okanagan: the 216-unit Creekview Heights in Vernon, which is about a month away from opening; the 186-unit Carrington View in West Kelowna, which is about halfway through construction; and the 180-unit Skaha Shores in Penticton, the first building of which is due to open in 2021.
Christina Wilson, vice-president of development and sales for Highstreet Ventures, said all three projects – which will feature net-zero buildings – have been pushed back by about a month due the extra health precautions required as a result of the pandemic.
“With our measures in place (we) do not expect to have any further COVID-related delays, unless of course government changes protocols,” Wilson said in an email.
“COVID did delay construction starts on a couple of our future projects,” she added, but
“after much review we have decided to move ahead and continue with those projects, which are slated to start construction late summer.”
As did her colleague at Mission Group, Wilson praised those involved in the construction sector for showing up to work during the crisis.
“We want to thank and acknowledge our team and the trades for persevering and continuing to work with the adopted measures in place so we can continue to build homes for future community members,” she said.
And while building permits were down by nearly half in April in Kelowna, the numbers in Vernon and Penticton held relatively steady.
“When we’re looking at our planning applications, they’re on par with 2019, and building permit valuations are in line with what we were expecting for 2020,” said Blake Laven, director of development services for the City of Penticton.
New residential construction, such as Skaha Shores, accounts for the vast majority of work going on in Penticton, Laven said, but a city relief package that waived fees for home renovations under $100,000 is likely responsible for an “uptick” in that segment.
He said he believes the construction sector has helped stave off what could have otherwise been an “economic catastrophe” for the region.
“It’s one of the bright spots, for sure,” said Laven.