Proponents of a major redevelopment project in Okanagan Falls appear to have made good on their threat to walk away from the deal due to unfavourable local zoning bylaws.
Zinfandel Holdings had since 2009 been working on a plan to convert the former Weyerhaeuser mill site into a blend of industrial, commercial and residential properties. The group of local businessmen had a deal with the forest company to purchase the 63-hectare site once all the regulatory issues were worked out.
But the project hit a snag on July 5 when the board of the Regional District of Okanagan-Similkameen declined to go along with the group’s request to remove language from a proposed Official Community Plan amendment for the area that specified the site would remain an industrial area.
Following that meeting, Jim Morrison, who appeared on behalf of Zinfandel, said the group would “likely” walk away from the project as a result. Morrison didn’t return a call for comment Friday, but it appears what was once likely is now a reality.
Weyerhaeuser spokesman Wayne Roznowsky confirmed Friday that his company’s deal with Zinfandel expired July 31 and the property is now back on the market.
“At this point, they basically have no interest in using the property,” Roznowsky said.
“I know the rezoning was sought by the developer, but I guess it couldn’t happen, so right now (the property) is just sitting idle.”
Roznowsky would not disclose the asking price for the site, but said there had been “virtually no interest” in it expressed by any other prospective buyers.
“I guess at this point we’ll just sit on the property and see what happens,” he said.
Morrison told the RDOS board that Zinfandel spent $300,000 on environmental work for the site and, although it was close to finally applying for the necessary rezoning, the proposed OCP amendment presented to much risk.
For now, the sole occupant is engineered wood products company Structurlam, which last month celebrated a 930-square-metre expansion of its operations there.
Tom Siddon, the RDOS director for the area, is optimistic the site can be redeveloped incrementally.
“My envisaged ultimate outcome here is we’d get an industrial park on the Weyerhaeuser land, and little by little with projects like the one Structurlam’s doing, we’re getting elements of a major industrial park,” he said.
Zinfandel’s proposal hinged on a 200-home residential component that didn’t comply with the industrial zoning for the area, and Siddon said he didn’t see anything from the company that presented a compelling case to rewrite local bylaws.
“What my disappointment was was that we didn’t really see much evidence of putting that plan together on paper to the extent you could take it out and market it,” he said.
Siddon will host a public hearing Aug. 12 to solicit input on the proposed OCP amendments for Area D-2. The proposal also includes language that would discourage vacation rentals in three neighbourhoods on the east side of Skaha Lake.
