Neils Christensen
Northern News Services

Iqaluit (Apr 05/04) - The City of Iqaluit is planning to take out a long-term loan of $2.6 million to pay for developing the Lake subdivision.

Brad Sokach, director of engineering, said they need the money to finish developing 22 lots in the new subdivision. "We had to put in a new road and bring water and sewer lines into the area," he said.

The city has already sold most of the lots. Only six remain. Along with the new loan, the city is also looking at approaching a bank to refinance its debt of close to $2.1 million for the Road to Nowhere.

John Hussy, director of finance, said the city is hoping for better interest rates on its loan. "We are just trying to get a better bang for our buck," he said.

Currently the city is paying eight per cent interest on the debt and Hussey said the plan is to reduce that amount.

"We are trying to negotiate a four or five per cent interest rate," he said. "This just makes good business sense for the city."

He says council didn't need to hold a referendum before borrowing the money because payments on the loans will come from land lease revenue and not general tax coffers.