Vernon Council Gives First Reading to Major Commonage Road Development

But Council Orders Independent Cost Analysis

Vernon, B.C. - Vernon city council unanimously approved first reading Monday (March 23, 2026) of an Official Community Plan amendment for a large mixed-use development proposed by Kerkhoff Develop-Build at 580 Commonage Road, but councillors made clear they will not proceed further without a full, independent analysis of long-term costs to taxpayers.

The application seeks to redesignate 10 parcels totalling 421 hectares (1,040 acres) west of Commonage Road and south of Bentrow (Bench) Road for a new neighbourhood.

Project Details

• Housing: Approximately 3,571 units (down from earlier versions), a mix of single-family, townhouses and apartments. 40% of the units would be attainable housing, protected by a Section 219 restrictive covenant.

• Parks & Conservation: Roughly 64% of the site would be protected open space, including 120 hectares (≈300 acres) of dedicated parkland plus an additional 152 hectares of natural areas.

• Commercial: A village centre with about 100,000 square feet of commercial space.

• Other elements: Phased trail network, development nodes moved farther from the biosolids facility (1,200 m buffer), and contributions toward the Apollo Road extension.

  
  

The project has been under review since the initial application was submitted on March 4, 2024. It went through public consultation (surveys, focus groups, open house), council committees, and referral to the Regional District of North Okanagan.

A revised package incorporating feedback was submitted in February 2026.

Staff noted the development would generate an estimated $100 million in on-site servicing Development Cost Charges (DCCs) over its phased build-out to help fund citywide infrastructure.

Cost Concerns Drive Additional Requirements

Councillors repeatedly expressed that while the benefits (new housing supply, attainable units, parks, and developer contributions) are relatively clear, the long-term operating, maintenance, and replacement costs to the city remain uncertain.

Councillor Brian Guy stated he had a much better understanding of the benefits than the costs and could not responsibly decide without a clearer picture of whether the project would pay for itself or become a drain on existing taxpayers.

Staff confirmed the applicant’s submitted desktop life-cycle cost reports were not considered a “complete or reliable basis” for evaluation. The applicant’s own cover letter acknowledged the reports were not a full life-cycle analysis and did not use Vernon-specific data.

Other councillors raised concerns about setting a precedent for higher-cost, lower-density growth outside planned areas and the project’s unprecedented scale (potentially adding more than 7,000 residents).

Council passed the following motion unanimously:

• First reading of OCP Amendment Bylaw 6067, 2026.

• Before second reading: A comprehensive life-cycle cost analysis (following industry best practices) must be completed by a qualified asset management professional, with terms of reference approved by council.

• Before final adoption (if it proceeds): Registration of the attainable housing covenant and an MOU for infrastructure and amenities.

  
  

A follow-up motion set an aggressive timeline aiming for second reading, a public hearing, and third reading by the end of June 2026. Staff will prepare terms of reference, engage a consultant, and the city may cover the cost of the independent review (a point some councillors noted with reluctance).

Mayor Victor Cumming and several councillors emphasized the “significant magnitude” of the proposal and that they do not take it lightly.

The application now advances with the added requirement for independent financial scrutiny.

A public hearing is targeted for June, though timing remains tight ahead of summer and the municipal election period.

Vernon Council Gives First Reading to Major Commonage Road Development, But Orders Independent Cost Analysis