Yellowknife (Sep 29/03) - Construction continues on Ptarmigan Road despite two stop work orders issued by the city Sept. 23.

Mike Mrdjenovich, developer for the project, said despite the fact he can be fined under the city bylaws, he has no choice after already spending $1.5 million on the housing project.

So, while work should have ceased on the site where concrete forms are now built, it continues on.

"We have to get these foundations done. I've already sold seven out of the 20 units," Mrdjenovich said from his Edmonton office Friday.

"There's not a nice way out of this situation. It's nothing new, I will lose either way," he said.

The city gave its approval for construction to begin on the site last week -- after it actually began. But because of an appeal launched by surrounding residents, stop work orders were subsequently issued under the zoning bylaw and the building bylaw, city planner Dave Jones said last week.

Mrdjenovich insists the appeal is nothing more than the selfishness of residents who want nothing at all built there.

"But their beef with the city has got nothing to do with me," he insisted.

"You should see the mess that was there and I ended up cleaning it up," he said of the lot, which was primarily outcroppings of rocks and trees.

Building developments in the area for 28 years, he said he is very disappointed in the effort to stop the construction.

The entire project is estimated to be worth $10 million and will contain 50 units.

"That's a big economic spin-off for the city," he said.

After hearing that residents said they would take the matter to the NWT Supreme Court if necessary, Mrdjenovich said he is unsure of the future of the project, but nevertheless, work will continue "until they put us in jail."

Those who purchased the homes were expecting to move in by the end of the year, he said.

Mayor Gord Van Tighem said as the developer chose to ignore the stop work permits, daily fines now will be issued for each day work continues.

"And the developer also acknowledges that if through the development appeal process he is required to vary, it is at his full expense and liability that he would be required to do that," Van Tighem said.

The background of the situation, however, shows the developer is in an appropriately-zoned area and he is working on a development that was approved by the city, he said.

"He is gambling to some extent, but what he is doing -- fitting the zoning and fitting the requirements that allowed him to get a development permit -- that he'll be upheld at the appeal." But because the developer continues work before the appeal process, Van Tighem said it is fully at his own risk.

As a quasi-judicial authority, the development appeal board will make a ruling on the matter.

If that decision is appealed, it could be heard in Supreme Court.