The redevelopment of the Villa Rosa restaurant and neighbouring properties cleared the first hurdle of a public hearing on June 7.
Two three-storey buildings are proposed for the properties, and the building facing Westminster Avenue would include commercial space on the ground floor.
Following the public hearing, council gave their unanimous approval to give second and third reading to the required bylaw amendments for the project.
Residents expressed concerns about parking and traffic along the narrow lanes around the property, wheelchair accessibility, and the green-ness of the project such as the possibility of green roofs as well as retaining or planting trees.
The developer was present at the public hearing to speak to the project following public comments, noting the internal parking for the residential aspects of the development, and work being done with the city to move power poles from the lane which will effectively widen it.
One resident of Penticton also spoke to ask why the developer had brought forward a proposal for a taller, six-storey building similar to the El Rancho project across the street.
The Westminster facing building also features a large commercial space at the intersection with Power Street, where the Villa Rosa restaurant is currently located.
The restaurant has posted a notice on their sign near the public notice for the redevelopment, thanking the community for 26 years of patronage and pointing them to their new location on Lakeshore Drive.
The new restaurant is located where the Vallarta Grill once was, and is set to be called Sociale.
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