With the B.C. government’s new regulations on short-term rentals now in effect, redevelopment plans have changed at the site of Penticton’s El Rancho Motel.
A strata hotel is now being proposed for 813, 825 and 877 Westminster Avenue, with the applicant hoping to reverse course from a previous request and change zoning from Urban Residential to Tourist Commercial.
The development would feature both residential and short-term rental units. It would also see the addition of resort amenities, including a fitness centre, café lounge, bike rentals, and outdoor pool area.
In 2021, the applicants asked to change zoning from Tourist Commercial to Urban Residential. At that time, they were hoping to turn the site into a mixed-use development consisting of five, six-storey apartment buildings.
Now, with the province restricting short-term rentals to only primary residences, plans at the site have been altered.
“With the loss of approximately half the current short-term rental standalone licenses this coming year, the need for condo-style short-term rentals will be imperative to host the many events in Penticton,” wrote Dennis Skuter, the developer, in a letter to council.
The 4.8-acre property is located across from the Penticton Trade and Convention Centre and South Okanagan Events Centre.
In recent years, it had been occupied by the El Rancho Motel and Enterprise Rent-A-Car location.
Zoning would allow for the developments to be up to six storeys.
Council will be asked on Tuesday, May 7, to approve the start of a city-led public engagement program related to the proposal.
The applicant has paid for related application fees, which account for the required staff time to conduct the engagement for the proposed development, according to city officials.
“The question for the community and council to consider is whether the tourist commercial land use designation represents what the community wants to see at this location in the future,” a staff report submitted to council reads. “This change in land use designation would allow for the rezoning of the lands in support of a strata hotel development with some residential components.”
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