Anatomy of a Deal: Memorandum of Understanding between Kelowna-Lake Country

Read the MOU between Kelowna and Lake Country, explaining the agreement between the two parties with regard to CN Rail corridor

The following was taken from a report to Lake Country council from Dec. 16, 2014 with regard to the proposed purchase of the CN Rail corridor. The City of Kelowna is investing 50 per cent of the $5.1 million dollar price tag for Lake Country to join inter-jurisdictional partnership.

The District of Lake Country and the City of Kelowna have approved a reciprocal Memorandum of Understanding (MOU) whereas the City of Kelowna will assist with the purchase cost portion of the District.

The City will advance 50 per cent of the District of Lake Country purchase cost in exchange for 50 per cent tenancy in common of the asset. The purpose is to assist the district’s purchase of its portion with the intent to pay back the City of Kelowna as soon as funds are available, especially through the sale of excess land. This will alleviate debt load of the district and protect the opportunity to finalize the deal with CN.

The general terms of the MOU are as follows:

•Kelowna and Lake Country will each pay 50 per cent of the purchase price for the acquisition of the Lake Country Corridor from CN, which purchase price is presently estimated to be $5,145,000.

•Kelowna and Lake Country will be registered as tenants in common of the Lake Country corridor each as to half interest (50 per cent each).

•As Lake Country reduces Kelowna’s investment interest, its interest in the ownership will increase while Kelowna’s will decrease.

•Lake Country purchase from Kelowna will not be based on market value but on actual purchase price.

•No interest will be applied to Kelowna’s investment in the land for three years. Subsequent interest will be applied to Kelowna investment by a rate established by the Municipal Finance Authority on January 1st of each year.

•The proceeds from the disposition/sale of lands along the Lake Country corridor that are considered surplus will go entirely to reducing Kelowna’s investment in Lake Country lands.

•If funds become available, Lake Country can make additional payment to further reduce Kelowna’s share.

•Lake Country will maintain full decision‐making authority for operating, maintaining and repairing the corridor until a decision is made to create a regional operation with all other participating partners.

Just Posted

Growing Okanagan tech sector hailed in new report

Study shows sector employees 12, 474 workers and is worth $1.67 billion to regional economy

Okanagan Sun tackle Chilliwack Saturday in BCFC action

The Sun will be looking for revenge at home after Corn Huskers beat them 22-18 earlier in season

Okanagan tech industry booming, contributes over $1.6 billion to regional economy

New study shows Okanagan tech sector contributes over $1.6 billion to regional economy

Kelowna church closes and makes room for Starbright

Starbright Children’s Development Centre meeting need for space with major real estate purchase

Black Mountain / sntsk‘il’ntən Regional Park starts to take shape

Student volunteers from three local schools work on trail building project

Pavement Patty slows drivers near Rutland Elementary

New survey reveals unsafe school zones during 2018 back-to-school week

Horvat leads Canucks to 4-3 shootout victory over Kings

Vancouver dumps L.A. in NHL pre-season contest

Update: Search called off for missing plane between Edmonton and Chilliwack

Search efforts were concentrated along the Highway 5 corridor between Valemount and Kamloops

Why Whistler for ski jumping in 2026? Calgary proposal gets pushback

Calgary 2026 proposes re-using the 2010 ski jumping venue Whistler for that sport and nordic

Despite progress, threat of 232 tariffs dominates NAFTA negotiations

Any deal is seen to require congressional approval before Dec. 1 to survive new Mexican government

VIDEO: Hundreds line highway as family brings home body of B.C. teen

Northern B.C. showed their support by lining Hwy 16 as Jessica Patrick’s body returned to Smithers.

B.C. MP Todd Doherty receives award for saving man who collapsed on a plane

Conservative MP was flying from Vancouver to Prince George, B.C., in June last year

Alleged border jumper from Oregon facing 2 charges after police chase in B.C.

Colin Patrick Wilson charged with dangerous operation of motor vehicle, flight from a peace officer

More than 35 B.C. mayors elected without contest

No other candidates for mayor in the upcoming local election in 22 per cent of B.C. cities

Most Read