Construction on former Northbridge Hotel site expected to start in early 2026, Kamloops council told

Photo: Castanet

Crews worked last year to tear down the former Northbridge Hotel building at 377 Tranquille Rd.

Kamloops council heard an attainable housing development on a high-profile Tranquille Road property could start construction early next year, provided the province grants the necessary approvals.

The city-owned land at 377 Tranquille Rd. is part of the BC Builds program, which matches landowners with developers and offers financial incentives to spur home construction for middle-income residents.

North Shore development firm Arpa Investments was chosen to build the development, and the property will be transferred to the Kamloops Community Land Trust Foundation, a non-profit aimed at providing and preserving local attainable housing.

During a Tuesday meeting, David Freeman, assistant director for the city’s development, engineering and sustainability division, said a development permit was issued for the project on Oct. 3.

Freeman said the budget for the housing development is $28.6 million, and the deputy minister of finance is expected to decide on budget approval in mid-December.

“If we are successful with that approval in December, we should have final approval,” Freeman said.

“It’s basically conditional on finalizing some construction contracts in January, and we could start construction [in] January, February 2026, and have anticipated occupancy in the fall of 2027.”

Freeman said the total project budget includes $2.66 million to help reimburse the city for the cost of demolishing the former Northbridge Hotel.

“That money will come back to the city,” he said.

The mixed use building is proposed to include ground-level commercial space and five storeys for residential use, including a mix of studio, one, two and three-bedroom units.

Freeman said under the BC Builds program, 20 per cent of the units must be rented at 20 per cent below market rate, meaning studios will be rented for about $1,080 per month, and three-bedroom suites for $2,121.

The project was at one point anticipated to break ground this summer, but Freeman said a few factors have slowed progress on the six-storey building — including last year’s provincial election and the 2025 B.C. budget.

The property at 377 Tranquille Rd., as well as an adjacent lot at 346 Campbell Ave., was purchased by the City of Kamloops in 2021 at a cost of about $7 million. The site was eyed for eventual redevelopment to deliver housing and to help revitalize the North Shore corridor.

The City of Kamloops spent $2.78 million to demolish the old Northbridge Hotel, with $2.66 million to be repaid.

Freeman said the Tranquille property was worth $3.41 million, and an August 2025 appraisal estimated the value of the site at $3.76 million.

He noted about $500,000 was spent on site security, which could be seen as a “wise investment” for the city to help clean up Tranquille Street.

“The city will, through the Land Trust, own a 85-unit building that’s valued at $31 million, and will be self sustaining through the income that it generates as an income-producing property,” Freeman said.

As a condition of the project, the City of Kamloops will lease the property to the Kamloops Community Land Trust for $10 for a 60-year period, but the city will retain ownership of the land.

Meanwhile, the Campbell Avenue property was sold to BC Housing in partnership with ASK Wellness for about $3.81 million, and is currently being redeveloped into an 80-unit affordable housing complex for low-income seniors and families. A groundbreaking ceremony for The Confluence was held in 2024.

Photo: BC Housing

This is what an 80-unit building under construction at 346 Campbell Ave. is expected to look like once it is complete.