Watermark Developments Ltd. has filed a petition in BC Supreme Court against the City of Kelowna, aiming to eliminate “no-build” covenants from properties on  395-425 Academy Way. The restrictions were placed in 2009 to possibly accommodate the Central Okanagan Multi-Modal Corridor, but plans have since changed. However, when Watermark sought rezoning for sections of their 284-acre property, city officials insisted on maintaining the “no-build” restrictions on 13 acres, impeding their development plans.

Despite repeated appeals from Watermark, including requests made in July 2021, January 2022, March 2022, and September 2023, city planners remained firm in their refusal, citing plans for the corridor. However, in January 2022, the City of Kelowna released the 2040 Official Community Plan (OCP), which didn’t include any proposals to construct a corridor across the subject property. The lawsuit argues that these restrictions inhibit the reasonable use of the land and lifting the restrictions would benefit the city financially through development fees.