Kelowna city council has given its unanimous endorsement for construction of a hotel directly adjacent to the Kelowna International Airport terminal.
Plans to attract a hotel operator for the site were made known a year ago, with naming of Sutton Place as the brand and Northland Properties Corporation the operator announced last week.
The hotel, which could begin construction as early as next year, is expected to be a six to eight storey building with between 200 and 300 rooms, conference space and restaurant, according to airport finance manager Shayne Dyrdal.
In a presentation to council, Dyrdal indicated the sublease of the property would expire at the end of 2054 which is in alignment with the current head lease with Transport Canada.
"Options to renew would be aligned with any option renewals provided by Transport Canada, up to a maximum of 99 years," Dyrdal said.
Rent would consist of a $500,000 deposit upon execution of the sublease, $2 million being paid on the date that all of NPC’s conditions precedent are satisfied or waived, and $110,000 being paid annually for 40 years beginning on the date the construction of the hotel reaches substantial completion.
Construction would begin within 18 months of conditions being removed with completion with 54 months of the removal of those conditions.
There would be 105 surface parking stalls constructed around the hotel, with a parkade adjacent to it.