A home rumoured to have been a hiding spot for alcohol during Prohibition could soon be converted into a new Penticton restaurant.

Penticton City Council will be presented with a proposal on Tuesday, Nov. 5, that calls for turning 689 Winnipeg Street into a "destination restaurant" with an associated bakery.

The property was listed for sale in 2023 at a price tag of nearly $1.3 million. It is included on Penticton's heritage registry, for "its representation of a prosperous period" in the city's history.

Giulio and Carole Miceli are the ones behind the new vision for the site, according to a letter of intent submitted to the city.

"In order to preserve the heritage structures, but still provide modern kitchens, washrooms, and a commercially viable level of seating, some site specific amendments to the current zoning are required," the letter reads. 

"In particular, the addition of a bakery as a permitted use, a reduction of the rear yard setback adjacent to the bakery, a reduction in parking, and an increase in the maximum gross floor area for a restaurant."

The home, built in 1921, has a long history with the hospitality industry. It can be found at the intersection of Eckhardt Avenue and Winnipeg Street.

Known as the Riordan House, the structure alternated between being a teahouse and restaurant in the 1980s before becoming a bed and breakfast in 1991.

The home is named for its association with the prominent hotel owner and "reputed bootlegger" David Riordan, a report to council reads.

"It is rumoured that liquor was hidden in the basement of the Riordan house during Prohibition," city staff said. "The richly detailed interior, which is virtually in original condition, is a reflection of the social prominence and personality of its original owner."

Council will be asked on Tuesday to give first reading to a bylaw that would add multiple site-specific provisions to the C1-Commercial Transition zoning, including a minimum of four parking spots to be provided.

The current proposal to convert the house into a restaurant and bakery "is aligned with the historic use of the house," a staff report reads.

Municipal politicians will also vote on whether to send the proposal to a Dec. 3 public hearing.