City should not be in real estate biz

Finally, disclosure that Kelowna City Hall is in the real estate business.

Who would have thought?

The bylaw allowing the city to buy, rent and sell property was passed during Sharon Shepherd’s terms in office (200511) though it’s current use is perhaps not what was intended by that council.

The City of Kelowna has significant real estate holdings around town. The properties with homes on them, are rented to the highest bidder at, or above, current market rates.

The City’s rationale may be that they are buying property for future use. Perhaps the proposed Cedar Creek Park might qualify, but homes on those properties generated rental income for 20-plus year. Maintenance was minimal so where did that revenue end up? Was any of it used to enhance our city?

The previous RCMP site was purchased by the city in 1963, at a reduced cost, along with the Kelowna Community Theatre, as they were purchased for community use and benefit. A large portion of that parcel was recently leased, under remarkably inadequate terms, for 99 years and will be used for a highrise condo with a mere token nod to the arts. This transaction was done by City Hall’s real estate department, with little public input.

We need to demand open and transparent disclosure of City Hall’s real estate holdings, the rationale for purchases, and distribution of profits. City Hall is now offering the old McDonald’s site on Highway 97 plus the site across the highway. They are asking over $11 million. What are they planning to do with these funds? Have City Hall’s previous real estate activities benefitted the citizens of Kelowna?

We have people living on our streets and urgently need affordable housing, a performing art centre, sports facilities and so much more, but where is the loop that ties the city’s real estate activity back to the enhancement of our community?

During Mayor Colin Basran’s terms in office, our property taxes have increased 22 per cent. City Hall has been a participant and perhaps driver in a redhot real estate market. Should they be? Are we a better community as a result? City Hall needs to explain and disclose and we, as a community, need to be informed and have input to this curious and, I believe, inappropriate role that City Hall has taken on, and been involved in for some time.

Sharron J. Simpson Kelowna