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Mark Anthony Group scuttles plan for downtown Kelowna boutique hotel

Water Street hotel nixed

Plans for a 12-storey boutique hotel on the site of the former Keg building in downtown Kelowna have been put on the shelf.

The Mark Anthony Group, which owns the property at the corner of Water Street and Lawrence Avenue, had proposed the hotel as part of a proposal to the city back in March.

However, a zoning application before council next week shows the developer is going in a new direction.

“After preliminary feedback on the form and character of the hotel development and neighbourhood consultation, the applicant informed staff on May 7 that the application would need to be significantly changed,” a staff report states.

“The development proposal now is for a four-storey commercial building with the opportunity for a residential suite.

“The potential uses of the building include, but are not limited to a restaurant, wine tasting room, wine shop, urban winery, distillery, urban market, events space and a residential unit.”

Plans for the new development are still in the works.

Once presented, this will be the third proposal brought forward for the property.

The original development permit approved in December of 2020 included a wine bar, lounge, rooftop deck, interpretive centre, tasting room, education centre and lab and a wine shop.

Those plans were dropped during demolition when they were unable to get approval from the province for a liquor license.

Staff have been in discussions with the Mark Anthony Group to expedite development of the site which has been dormant for nearly three years.



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