Terry Halifax
Northern News Services
Hay River (Jun 18/01) - The Town of Hay River decided last week to pursue an offer for home builders to take up to one year to pay for lots developed by the town.
Council voted seven to one in favour of offering the lots payment-free for 12 months as an incentive for home builders and developers. The only one opposed was Assistant Deputy Mayor Verne Tordoff.
"I don't think we should be getting into the banking business with ratepayers money," Tordoff said.
He argued that if someone falls behind on bank payments, the town could lose the land to the mortgage holder.
"We're buying nothing but trouble," he added.
Mayor Duncan McNeill said the motion is still subject to approval by the town's legal council and should they decide that the financing could leave the town vulnerable, the motion will come back to council for re-consideration.
The town normally demands payment no later than 45 days following the deed transfer. McNeill said the original request for the payment deferral was put to council by contractors.
"If they could get something like this, they would be in a much better position to build some heavily needed housing in Hay River," he said.
For individual homeowners who might not be able to secure a mortgage through conventional means, McNeill says the government may help guarantee loans.
"There appears to be forms of bridge financing available through the Northwest Territories Housing Corporation," McNeill said.
To spur-on the sale of the lots, the town held a Dutch auction, reducing the cost of the lots by $1,000 per month, but McNeill says the price is now as low as they can go.
Councillor Robert Bouchard voted in favour of the motion and said the plan might help move some of the land to pay off the town's debenture.
"If we're going to become a bedroom community for the mining industry, we need to have some housing," Bouchard said.
He said the town already faces trouble with the debenture coming due on the development.
"We already own this property and we already own the big debt we have to pay off," he said.
"We need to start selling some of that property."
The town originally had 68 residential lots for sale and 15 commercial lots. There are 43 residential lots left and nine commercial.
"Our goal is to have 36 lots sold before that debenture comes due," McNeill said.
