Proposed Prospera Place High-Rises Withdrawn Amid Concerns

In a surprising turn at the Monday Kelowna's council meeting, the GSL Group withdrew its ambitious proposal for the construction of a trio of high rises on the 1241 Water Street site, currently a parking lot for Prospera Place. Initially pitched in 2018 and revised in late September of 2023, the project's withdrawal paves the way for a future proposal, the details of which remain under wraps.

City staff, who had previously recommended an "early consideration" process for the project, outlined several concerns regarding the proposal. These included the proposed buildings' non-compliance with existing zoning regulations and several Official Community Plan (OCP) policies, the absence of a plan to maintain public parking provisions for Prospera Place, and the potential impact on local infrastructure, including road dedications on Water Street and Cawston Avenue and the preservation of trees along Water Street.

The proposal featured three buildings of 13, 22, and 26 stories, significantly exceeding the current 12-story height restriction in the Downtown Urban Centre zone. Despite the developers' willingness to negotiate the inclusion of around 100 public parking stalls within an underground parkade, city staff raised concerns about the project's compatibility with the surrounding area, particularly in relation to the arena's long-term viability.

With the GSL Group's decision to withdraw the application, it is unclear what the future holds for this prime piece of downtown real estate. The city anticipates a revised plan that better fits the community's needs and regulatory frameworks, ensuring that any development enhances Kelowna's downtown vibrancy and supports the prosperity of Prospera Place and its surrounding areas. The journey towards reimagining this space continues, with the community keenly awaiting the next chapter in the evolution of Kelowna's downtown landscape.