Kamloops council has signalled strong support for a tax incentive program aimed at jumpstarting development at the Kamloops Airport, settling on key details that could shape how and what gets built on the largely underdeveloped site.

After more than an hour of discussion, councillors agreed the city should move forward with a revitalization tax exemption bylaw and gave clear direction on how it should be structured—decisions that will now guide staff in drafting the final policy.

At the heart of the plan is a 10-year, 100% property tax exemption on the increased value of new developments, a model already used elsewhere in the city. Council backed that approach as a way to provide certainty for developers and remain competitive with other jurisdictions trying to attract investment.

But councillors also tightened the rules around who qualifies.

Only projects with at least $300,000 in new construction value will be eligible—three times higher than what staff initially suggested. The higher threshold is meant to ensure the tax break targets more substantial developments, such as hotels, offices, or recreation facilities, rather than smaller, incremental projects.

There was also a push to ensure the program doesn’t unintentionally draw industrial activity away from other parts of the city. Council ultimately limited eligibility for certain industrial-type uses to airside airport lands, where proximity to aviation services makes those uses more appropriate.

Taken together, the decisions reflect council’s attempt to strike a balance: making the airport more attractive for investment while avoiding overly generous incentives for smaller or less impactful projects.

The discussion also highlighted a broader reality—development at the airport has been slow, and incentives alone may not dramatically change that. Councillors acknowledged that factors like limited access, market demand, and the airport’s leasehold land structure all play a role in shaping what gets built.

Still, the tax exemption is seen as one tool to help shift momentum.

Some councillors pointed to the potential for larger, higher-value projects—such as hotel or mixed-use developments—to act as catalysts, creating demand for additional services and businesses over time. By focusing incentives on bigger investments, council is signalling it wants to prioritize projects that could have a wider economic impact.

The bylaw itself has not yet been adopted. Staff will return to council with a finalized version based on this direction, where a final decision will be made.