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Final cost of Penticton's controversial bike lane comes to $9.1M

About 70 per cent of the project was funded through government grants, according to the city

After more than five years of planning and construction, Penticton's lake-to-lake bike lane now has a final cost.

The 6.7-kilometre bike lane is estimated to ring in at $9.1 million, city officials have confirmed.

That's up from the $8 million price tag originally pegged for the controversial project five years ago. In an email to Black Press, a city spokesperson pointed to "construction cost escalation" when asked why the project's cost exceeded its original estimate.

Separated bike lanes with concrete barriers, intersection and crossing improvements, street lighting upgrades, and storm system alterations were among the project's associated costs.

The bike lane connects Okanagan Lake and Skaha Lake and was officially deemed finished on June 7. Final landscaping along the route is currently underway and set to be completed later this fall.

Penticton found support from feds, B.C. government

In its email, the city said roughly 70 per cent of the project's final cost was funded through provincial and federal grants.

To date, contributions from higher levels of government have totalled more than $6.3 million, including:

• $1 million from the Community Economic Recovery Infrastructure Program;
• $750,000 from the Canada Community Revitalization Fund;
• $2.2 million from the Canada Community-Building Fund;
• $1 million from the Provincial Active Transportation Fund;
• $840,000 from the Federal Active Transportation Fund

Penticton also received unspecified "miscellaneous amounts" from ICBC’s Road Improvement Program, according to the city.

Lake-to-Lake route takes centre stage at City Hall

The bike lane's route through the city was selected in 2020.

One year later, construction broke ground after its first sections were approved to proceed by the city's previous council, led by then-mayor John Vassilaki.

Separated lanes have been built on Martin Street, Fairview Road, and Atkinson Street in the years since.

Penticton's current city council also helped push the project over the finish line when a split vote in March 2023 green-lit work to proceed along South Main Street.

That section alone was estimated to cost $1.5 million, the city said after council gave its stamp of approval more than two years ago.

Work on South Main includes concrete barriers on both sides of the road, "parking pockets" in select spots along the route, new-look bus stops, and the replacement of what the city called underutilized on-street parking with boulevards, trees, and rain gardens. Grizzly Excavating was awarded the contract for the job.

Penticton has applied for a Federal Tree Planting Grant to cover some of the landscaping work that is currently underway along the route, city officials said.

Debate, controversy over bike lane plan

The lake-to-lake bike has been subject to controversy in the community and at Penticton City Hall since its approval.

Concerns over the project have mainly revolved around loss of parking, narrow lanes for cars and emergency vehicles, and cost.

After the project's final section along South Main was approved, around 75 people gathered downtown to protest the decision. Some were seen holding signs reading â€œprotected bike lanes mean less parking."

The rally came as the Penticton Area Cycling Association (PACA) regularly organized rides along the route to show its support for the project. Most recently, PACA welcomed cyclists from across the community for a celebratory lake-to-lake ride upon the project's completion.

In response to the apparent community blowback, city council in October 2023 voted 4-3 to cease any new bike-lane designs that involve separated barriers until at least 2026.

The downtown section of the route jolted back into the spotlight in June 2025, when a city staff safety plan called for the closures of some driveways along the route.

That prompted Coun. Jason Reyen, in opposition to the idea, to say the bike lanes have "already caused enough headaches and controversy in this area."

Coun. Campbell Watt also acknowledged some of the community's concerns during a council meeting in February 2025.

"I have to be honest, I don't think there's a desire to go really into the bike lane conversation again right now," he said. 

'Key' project marked as complete

In recent weeks, crews have been busy installing new signage along the route that directs riders to the KVR Trail or Okanagan Lake, for instance. A digital counter indicating how many riders use the route a day can also be found in certain spots, including on Martin Street behind Gyro Park.

Roughly 120,000 trips were measured along the partially completed bike lane in 2024, according to the city.

"The lake-to-lake route is a key component of our commitment to creating a comprehensive transportation system that supports all modes of travel and meets our environmental objectives," the city wrote in an email, adding that it will "significantly enhance our city's infrastructure, promote sustainable transportation, and improve the quality of life for our residents."

PACA — upon celebrating the completion of the bike lane in June — thanked city council, both current and past, for its help in making the project a reality.

"PACA urges the city to continue to invest in active transportation and to expand the all-ages and abilities network to empower more people to bike and roll to get around Penticton," its statement reads.



Logan Lockhart

About the Author: Logan Lockhart

I joined Black Press Media in 2021 after graduating from a pair of Toronto post-secondary institutions and working as a sports reporter for several different outlets.
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