WATCH: How new rules could add another 2,000 homes downtown

• Density bonus program could add extra floors and units to downtown towers
• Developers will get to have extra density if they make one of three commitments

A revamped program being worked on at city hall could pave the way for potentially thousands more residential units downtown.

And though it is unlikely every developer will take advantage of the opportunity; it allows builders to go above and beyond what would typically be allowed within the soon-to-come new zoning rules.

Staff have pitched lawmakers on an updated density bonus program, allowing towers to be built higher and denser in the downtown core. But it would come at a cost to the developer in the form of community amenities.

Builders who want to add a few more floors to a project could do so in exchange for one of three commitments: guaranteeing the project will remain a rental property; contributing to the city’s Housing Opportunities Reserve Fund; or contribute to a new Public Amenity and Streetscape Reserve Fund.

The new fund would be used to bankroll things like sidewalks, curbs and gutters, landscaping, street furniture, bus pullouts, improved on-street parking and other boulevard improvements. The housing fund is used to buy land for affordable housing projects.

“There is a clear need for more rental and affordable housing options in Kelowna. There is also a significant need for investment in the public sidewalk system in the City’s Urban Core,” the report read. “A density bonus program is a tool provided to municipalities by the province that can help achieve those objectives and can represent a significant source of revenue.”

How does it work and what will it do to building heights?

Say a developer wanted to build a tower at 1428 St. Paul Street. Under the proposed new zoning bylaw, a 32-storey building with about 315 residential units could be built. But if the developer wanted to take advantage of the revamped density bonus program, a 43-floor tower with 438 units could go up.

A formula would then be used to figure out how much money the builder would need to contribute to either the affordable housing or streetscape reserve fund. Most contributions would be several hundred thousand dollars, according to the report.

If every potential development site detailed by city staff that could break ground over the next 20 years took advantage of the density bonus, the number of approximate new housing units downtown could surge from 6,162 to over 8,100.

Terry Barton, the city’s development planning department manager, speaking to lawmakers, said he expects demand for the program to ebb and flow.

“Density bonusing programs work well when the economy is strong and when the developers know the additional units can be sold,” he said. “When the development cycle is not as strong, the developers are more conservative in their approach.”

Barton fielded an array of questions from councillors, everything from concerns about if the program is going far enough, to how to make sure the program actually gets used.

The proposal was endorsed in concept and will come back for another workshop where lawmakers have the opportunity to further discuss how much more can be done with the program.