Desert Gem is proposing to introduce storage units on the property to make it more financially viable.
The owners of Desert Gem RV Resort in Oliver say that change is needed on the property to make the business sustainable.
Owner Scott Nelson and agent Brad Elenko addressed council last week with a proposal to breathe new life into the tourist commercial venture.
“It’s just not doing that well (financially),” said Elenko, noting the business can’t continue “bleeding” like it has been.
As a result, something has to change to make the property more sustainable, he pointed out.
Nelson said he bought the property south of town in 2008, and it hasn’t been profitable since.
“It has been listed for sale for one-and-a-half years, but who’s going to buy it when it’s losing money?”
Nelson said they have been looking at different options to get more value out of the land, and are looking at reconfiguring the use of the park to accommodate self-storage units on the east side of the property.
Nelson believes that storage units will work well considering tourism growth and upcoming developments such as Area 27.
He also believes that the property’s highway frontage will be valuable some day.
Nelson also mentioned that a pad on site could accommodate a 120-room, six-storey hotel in the future.
Elenko said the site would be able to support a hotel, keeping with the “spirit and intent” of the Town’s Official Community Plan (OCP).
Mayor Ron Hovanes said he favours investment and wants to bring amenities to town, but expressed concern about adding permanent structures and tying up the property for years.
“I’m not sure how this fits in the OCP . . . having storage units on a tourist commercial property.”
But the mayor said if there was a plan to build a hotel on site, that would generate some real excitement.
Hovanes said taking away RV sites to establish storage units would make the park less viable.
“If it’s bleeding today, it will bleed even more if it’s missing (20) sites.”
Councillor Larry Schwartzenberger expressed his concern about people rezoning properties and making amendments, and then erecting a “for sale” sign that reflects higher values.
He also doesn’t want to set a precedent for other owners, allowing them to “pick away” at the Town’s tourist commercial land.
Nelson said they only want to stratify the storage units, not the RV sites.
Councillor Jack Bennest said it appeared the owners were using the hotel idea as a “carrot” to get what they really want – the storage units.
“The prospect of getting a hotel (here) is remote,” he said.
Council has yet to receive an application from Desert Gem outlining the proposal, which Elenko stressed is only a concept at the moment.
By Lyonel Doherty
