Kelowna City Council has agreed to uphold a staff decision to refuse issuing a business licence for a boarding house that has been operating illegally for the past two years.
Councillors and city staff heard from the owner of 911 Bernard Avenue was issued a business licence to operate a rooming house in 2010, when he bought the property.
However, that expired at the end of 2021.
In September 2022, the city adopted its new zoning bylaw, which saw the property rezoned to MF2. That meant it could no longer operate a “boarding or lodging” house except as a lawful non-conforming use.
However, that non-conforming use requires an existing business licence.
The owner applied for a licence again in December 2022 but that was also denied.
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As a result, city bylaw staff began investigating and taking enforcement steps to determine if the business was still operating without a licence.
“Through these investigations (staff) discovered that each of the boarding units had been unlawfully converted into individual apartments with their own kitchens, without building permits,” said a report prepared by Dean Strachan, the city’s community planning and development manager.
The property owner said he was involved in a motor vehicle accident in late 2021 and he was unable to renew the licence on time. He argued about a lack of communication from city staff about the expiring licence and claimed notices were sent over email, something he was not focused on while recovering from the accident he was in.
“I don’t feel it’s fair to not check an email, then have not only my business licence cancelled without notice, out of the blue, but also have the zoning to my property changed,” he told council.
He pointed to the city’s bylaw no. 7878, or the Business Licence and Regulation Bylaw, which states that licence suspension needs to be delivered in writing and in-person or through registered mail.
The property owner claimed that didn't happen. He also argued that more notice should have been given for the Dec. 2022 rejection.
Strachan told council that because the zoning bylaw revamp in 2022 was “comprehensive to the whole community,” city staff did not send notices out to individual property owners about new property zonings but did provide several public hearings, advertising and open houses.
Strachan said the business licence fee was not paid, which cancels the licence.
“We give you so many months to pay it then if it doesn't get paid, we just cancel it,” he explained.
Strachan added that, due to the individual kitchens (which have been safe but built without permits), it was offered to the property owner to have the building converted to a seven unit apartment building.
“We’ve accepted that as a reasonable sort of alternative to doing short-term rentals, however, the applicant wishes to pursue the short-term rental option,” Strachan told council.
Strachan said this would require significant rezoning, OCP amendments and bringing the building up to code, which he said could be difficult due to the building’s age.
Regardless of the property owner’s arguments, city councillors supported staff recommendation that reconsideration of a business licence not be granted for the property owner.
Council was told staff could still work with the property owner on a possible apartment rezoning.
Mayor Tom Dyas urged the property owner to work with staff to bring the property in compliance.
