Open Letter re Centennial Park and Hotel Development

From: Tom Szalay
6604 Bellevue Drive

To: Mayor and Council
Town of Oliver

 

I am writing to express my strong support for council’s approval of Zoning Amendment Bylaw 1350.22, being considered at public hearing on May 8, 2017. I am writing this as open letter, with copies to local media to outline my reasons for support to the wider community, particularly those new to the area and those that have expressed concern or opposition to this proposal.
As a matter of public introduction, I was born and raised in Oliver, graduating from SOSS in 1976. I have been back in Oliver since 1990, working in a senior management position for the Town of Oliver for over 24 years, before retiring in 2014. As such, I am very close to achieving the illusive rank of “long time resident”, which has always seemed to carry some weight around here.
In this letter, I would like to first outline the reasons for my support, followed by a brief history of past planning processes and decisions that will hopefully culminate with the successful implementation of a downtown hotel project. Though this letter has become longer than I intended, it is impossible to present the support and history of this proposal in a few simple sound bites. Even as long as this letter is, there are still many details that have had to be omitted or simplified.
REASONS FOR SUPPORT
Community Benefits
Oliver is currently missing a great deal of economic potential without a full-service hotel. South Okanagan tourism is no longer the “peaches and beaches” destination of the 1960s and 70s. It has matured into a diverse interests such as golf, wineries, agritourism, eco-tourism and a range of active lifestyle activities. Arguably, Oliver offers more of these activities than either of its tourist-destination neighbours north or south, but misses many potential economic benefits without a hotel. Tourists visit our sights, play the games and then return to Penticton or Osoyoos for dinner, overnight accommodation and other entertainment. We are lucky to sell a tank of gas to many of these day-trippers outside of their specific destinations. The same situation occurs for winter activities such as hockey tournaments, curling bonspiels, skating competitions and skiing.

While Oliver has some motel facilities, campsites and B&B operations, many tourists and visitors feel most comfortable in a recognized, nationally-branded hotel. Besides tourists, I have spoken to locals who have downsized their residences and have visitors stay in Osoyoos hotels, because Oliver currently lacks the type of accommodation they are looking for. These friends and family members are also taking much of their vacation and visiting budgets out of our community.

Municipal Financial Benefits
In addition to private-sector economic benefits of a downtown hotel, local governments – and therefore us taxpayers – will also benefit financially. The existing Centennial campsite is on municipal land but is not operated by municipal staff and crews. Instead, a campsite operator was selected under a public proposal process. The Town does not collect any camping fees from campers, but only rent from the operator, amounting to just over $20,000 per year. In addition, the campsite has been exempted from taxation by the BC Assessment authority and pays zero property taxes.

A new hotel will cost approximately $8 million to build. As a private facility it will be subject to property taxes. Although a hotel built in the downtown would be exempted from general municipal taxes on the added improvement values for 10 years, it would still pay an estimated $32,000 per year towards shared regional services such as community parks, swimming pool, arena, community hall, recreation programs, Frank Venables Theatre, landfill operation, heritage society, sterile insect release and library, immediately after completion.

Downtown Benefits
Like many small towns, Oliver struggles to sustain its downtown core. Locating a hotel in the downtown will provide the greatest spill-over benefits to restaurants and other small businesses within walking distance. While the existing campsite already provides some such economic benefits to nearby businesses, an 80-room hotel, operating all year long will provide much greater economic potential than a 36-stall, seasonal campsite. In addition, an 80-room hotel only requires two acres of development space leaving a further acre for potential mixed-use commercial or high-density residential development right in the downtown core. This will provide additional future economic benefits to the centre of our community.

Environmental Benefits
A riverside hotel location just north of Fairview Road is within easy walking distance of most community recreation facilities as well as downtown businesses. This will reduce the need to drive for most local trips. In addition, as we (particularly younger generations) become increasingly aware of human
environmental impacts such as climate change, I question the long-term sustainability of dragging 4,000 to 7,000 pound trailers or 30,000 pound motorhomes across the country at 10 miles or less per gallon. In any case, several other non-municipal properties in the Oliver area can continue to cater to this type of business after Centennial is redeveloped.

PLANNING PROCESS
First, we must keep in mind that what we call “Centennial RV Park” has never been a public “park” in my
recollection. It has operated as a pay-per-use commercial campsite for decades. Developing a hotel would simply be a change from one type of tourist-commercial operation to another. Also, developing a downtown hotel on this site did not just arise as a recent whim of council. It is the culmination of years of planning, analysis and public consultation. Some key milestones leading up to this point are outlined
below:
Wine Village Accord
In May 2003, the Oliver and District Economic Development Society, working with the Town of
Oliver, finalized the Wine Village Accord, which identified 93rd Street (now Station Street) as the
location for a “Wine Village” mixed-use development.
OCP Bylaw 1070
In January 2004, council completed a major update to its Official Community Plan (OCP). An OCP
sets out the long-term desired land uses of council and is enacted only following extensive and
ongoing public consultation. In this OCP (Bylaw 1070), the entire current campsite area was
designated as the “Anticipated Focal Area/Anchor for Wine Village”. As this Bylaw’s policies
explain, “The Town’s desire is to have this area become the focal area and cornerstone for the
development of the Wine Village Concept.”
Smart Growth on the Ground
From 2005 to 2007, the community worked with the UBC Design Centre for Sustainability to
develop the Smart Growth on the Ground Greater Oliver Concept Plan. This plan is the
culmination of over 16 public consultation and input events and is likely the most publiclyengaged
planning document ever prepared for Oliver and district. The Smart Growth report
recommended the area between Station Street and the river dyke (i.e. Centennial campsite) be
developed as “Commercial Mixed Use.”
Wine Village Concept Plan
In 2008, the Town of Oliver, working with Stantec Consulting and Robert Mackenzie Architect,
developed the Wine Village Core Area Concept Plan. This planning process was enthusiastically
supported in public consultation meetings. It recommended mixed-use commercial-residential
redevelopment of the Centennial site, anchored by a hotel development. The Wine Village
Concept Plan was subsequently incorporated into the Town’s OCP.
Hotel Market Study
The global economic downturn following 2008 resulted in hotel plans being placed on the shelf
for several years. However, in 2012, council engaged Urbanics Consultants to prepare a Market
Study and Economic Feasibility Analysis for a potential hotel development in Oliver. This report
concluded that there is economic opportunity for a mid-upper scale hotel property in Oliver of
around 80-100 rooms. The site deemed by the consultant to represent the greatest potential is
the ”town-owned property adjacent to the Okanagan River” (i.e. the centennial site).
OCP Bylaw 1370
In 2015, council again undertook a major update of its OCP, as is customary after over 10 years
since the previous update. This update (Bylaw 1370) also required extensive public consultation
and again confirmed the long-term land use of the Centennial site to be an extension of the
Town Centre development area. Specifically, the OCP indicates the Town of Oliver “Will
continue initiatives to support broader “Wine Village” goals of developing a pedestrian-friendly,
mixed use area, featuring hotel, commercial and residential uses along Station Street…”
Private Economic Analysis
The current hotel proponent is responsible for his own economic analysis and due diligence
before undertaking any new hotel development.
Recent opening of the Provincial Correctional Centre and in particular, the Area 27 road racing
facility will only increase the market for hotel rooms in Oliver, whether for business or pleasure.
With a hotel in place, Oliver will also be ready to participate in the benefits of future potential
tourism draws, such as the ongoing success of the Mount Baldy Ski Resort, and hopefully, a
viable Grasslands National Park, centred south-west of Oliver.
Should the proponent’s analysis confirm viability of this hotel project, I suggest we extend him a
warm welcome, instead of engaging in back-door defamation of our community and our
planning processes, as has been threatened by some opponents to this project!

CONCLUSION
In conclusion, I hope that council can support this approval process as expediently as possible and that
the largest possible majority of our community will come to welcome the proposed hotel developer as
an important component of Oliver’s overall economic viability.