Construction at former Northbridge Hotel site in Kamloops expected to begin in early 2026

Rents are expected to be set between $1,350 for bachelor suites and $2,650 for three-bedroom units. As the project is part of the BC Builds program, 20 per cent of the units — 17 in total — have to be offered at 20 per cent below market rent.

“We should be able to put new studio units on the market for $1,080 and three bedroom units at $2,121 per month,” said David Freeman, the city’s assistant director of development, engineering and sustainability.

At Tuesday’s meeting, Freeman told council a development permit was issued for the project on Oct. 3. He also said the total project budget is $28.6 million and that the necessary provincial approval could come by mid-December.

“There is a grant involved to make those rents achievable,” Freeman added. “If we are successful with that approval in December, we should have final approval — which is basically conditional on finalizing some construction contracts — in January.”

“We could start construction [by] January [or] February 2026 and have anticipated occupancy in the fall of 2027.”

The City of Kamloops bought the Tranquille Road property for $7.1 million in October 2021, with plans to redevelop the site into market housing. Also included in that deal was the adjacent property at 346 Campbell Avenue, which BC Housing later bought for $3.8 million.

Construction on an 80-unit housing development at the Campbell Avenue site is well underway, in partnership with ASK Wellness. It’s called The Confluence and it will be for seniors and low-to-moderate-income families

The city also spent about $2.78 million to demolish the Northbridge Hotel and Freeman said the project’s total budget includes $2.66 million to cover some of those demolition costs.

“That money will come back to the city,” Freeman added. “BC Builds, BC Housing will write a cheque to the City of Kamloops. The [Kamloops] Community Land Trust actually gets to write a cheque for $2.66 million and that is to reimburse the city for the demolition costs.”

Following the Campbell Avenue deal with BC Housing, Freeman told council the Tranquille Road property cost $3.41 million, and that it was appraised at $3.76 million in August. He called the roughly $500,000 spent on site security “a wise investment” as it helped “clean up Tranquille [Road].”

“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 added.

While the city will retain ownership of the land, a condition of the project approval requires it to lease the property to the Community Land Trust for $10 for a 60-year period.

Construction on the project was initially expected to begin this year, though Freeman said there were a few reasons for the delay, including last year’s provincial election and the 2025 provincial budget.

“We are working diligently with BC Builds and we hope to be able to announce that we were successful with the [funding application before the] Deputy Minister of Finance,” he added.

– With files from Michael Reeve/CFJC Today