Thorunn Howatt
Northern News Services

Yellowknife (July 18/01) - After vowing never again to try building in Yellowknife, a developer is going to take another shot at putting up an apartment complex.

Trevor Macnab from Northwest Rock Services works at Nova Construction Limited's Rat Lake site. He is moving rock to make way for a proposed 60-unit apartment complex. - Thorunn Howatt/NNSL photo

Mike Mrdjenovich and Nova Construction have started moving rock to make way for a 60-unit building near Rat Lake.

"The population is going to boom," said Mrdjenovich. "I've known there was a shortage."

Mrdjenovich's Bison Holdings has turned away enough apartment-seekers to convince him to proceed with a development application for the proposed property.

He estimated the project's cost will be over $5 million. Escalating building costs have discouraged others from putting up new construction before now.

Builders cite a shortage of labour as the number 1 reason for the high cost of construction.

"Construction costs used to be between $80 and $90 per square foot. Now it costs over $100," said Mrdjenovich. He predicted a one-bedroom unit in the new building will rent for $950 per month and a two-bedroom, two bathroom apartment will go for $1,100.

In August last year, Mrdjenovich told Yellowknife city council he wouldn't be pursuing development in the city after losing a bid to build a seniors complex at the former Bartam Trailer Court site.

"That project was a real disappointment. They shouldn't cry now because they are short of housing."

Residential building permit applications are up this year to 54 by June's end, compared with last year's 43 during the same time period.

Although Nova's application for blasting was successful, the development permit to include construction hasn't yet been approved.