Yellowknife (Feb 26/03) - It looks like the city is getting back into the development business again.

City council voted overwhelmingly Monday night on first and second reading to borrow $1.6 million to develop a stretch of 32 industrial lots in the Kam Lake area.

With only six available lots left, councillors are saying they can't count on private developers to get on board to develop the lots themselves before demand for industrial space reaches crisis levels.

Even Coun. Alan Woytuik, who's been -- at best -- lukewarm to borrowing schemes in the past, said council can't afford to wait.

"I'm in favour of it," said Woytuik. "We need some more industrial lots, there's not very many left.

"We borrow the money but it is repaid immediately through land sales, so there's no impact on the tax payer really."

Coun. Dave Ramsay said they may not even have to borrow money if developers come forward before the summer.

"If someone steps up to the plate in the meantime we just don't borrow that money," said Ramsay.