GARY NYLANDER/The Okanagan Saturday Mayor Walter Gray makes a state of the city address during the Kelowna Chamber of Commerce luncheon at the Delta Grand Hotel on Friday.

Kelowna must focus on building more affordable housing to retain young people and bring down the city's average age, Mayor Walter Gray said in his state of the city address.
The mayor told a Chamber of Commerce crowd that easing the restrictions on secondary suites should create an oversupply, which would lower rents and make living in Kelowna more affordable. The city received more than 160 applications for secondary suites in the past three years, with just four being refused, he said.
"We need to focus on . . . a greater stock of housing that more people can afford - affordable housing to own, not just to rent," he said. "Young people . . . need the help and Kelowna needs them to remain in this community, wherever possible."
The average age of Kelowna's population is eight years older than the national average, Gray said, and only 10 per cent of city homeowners are younger than 35. More affordable housing for young, skilled people and easier access to public transit help build a workforce and re-balance the
demographics.
Without some effort to attract and retain younger residents, Kelowna will continue to have one of the oldest populations in Canada, Gray said.
"We enjoy a lot of benefits from this older demographic, a kind of quiet stability. But it doesn't contribute a whole lot to job creation. So we can't just sit back and hope the under-55 crowd will find us."
The slow economy formed the backdrop of Gray's first major speech to the Chamber since his election in November. Now is the best time for government to invest heavily in public infrastructure, he said, because the trades are cheaper and jobs are created when they're most needed.
For Kelowna, that means the revitalization of Bernard Avenue, which begins in September, is well-timed and will re-energize the heart of the city, Gray said.
"We can help re-balance our demographics and strengthen our economy by investing in areas that benefit our citizens . . . by contributing to our quality of life and providing a jolt of economic activity."
The city is kick-starting $75 million worth of projects this year. They include widening Lakeshore Road, studying a replacement for the Lakeshore bridge, and new transit exchanges in Rutland, Orchard Park, Lakeshore Road and the H2O/CNC complex.
There's money going toward the Rails with Trails expansion toward UBCO. And plans for a recreation park in Glenmore on an acreage released from the land freeze in November will begin rolling out.
"We're not ready to build because the need is not there yet. But Glenmore is next," Gray said.
A multi-age activity centre - the former Water Street Seniors Centre - will move to the Parkinson Rec Centre. Once the Kelowna Yacht Club takes over the seniors-centre location, Phase 2 of the Stuart Park expansion can begin.
The Chamber is looking into the feasibility of building a convention centre, which council supports, said Gray.
"Let's invite our friends, particularly if they bring money. It may well be a convention centre or maybe some other initiative.
"We're very optimistic about the future. Kelowna is a great place to do business and a great place to live."