Kelowna settles long-standing dispute, buys McDonalds property

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Thirteen years, and a protracted legal battle later, the City of Kelowna and McDonalds have settled their dispute over property at Water Street and Harvey Avenue.

The city announced Tuesday morning it has spent $2.05 million to purchase the property and settle legal claims launched by the corporation when the restaurant was closed in 2007.

McDonalds filed suit against the city in 2009, claiming the redesign of Highway 97 resulted in the closing of the restaurant in November of 2007.

The intersection was redesigned as part of the overall construction of the William R. Bennett Bridge.

McDonalds officials at the time told Castanet News, "changes to the entrance points going into the restaurant have made it increasingly difficult for that location."

“Proactive land acquisition is a key component of the city’s long-range financial and capital planning framework and this site represents a key location in the city’s western gateway,” said Graham Hood, strategic land development manager.

“Coupled with last year’s acquisition of the former Husky station at 380 Harvey Ave., it represents a unique opportunity for future redevelopment.”

The restaurant was also a haven for homeless and drug users, which, in part, forced other neighbouring businesses to shut down.

Residents around the property have complained the area continues to be used by an undesirable element.

“Assessment of the building, review of on-site security measures and remediation of the property is expected to begin immediately and take the better part of this year,” said Hood.

“A plan for lot consolidation and future redevelopment options that leverage the site’s prominence at the entrance to both Kelowna and the downtown core will be brought forward for Council’s consideration in the coming months.”