Iqaluit (Feb 07/05) - The Nunasi and Kitikmeot corporations are each investing $1 million to expand Inuksugait Plaza in Iqaluit.

The plaza is a four-phase project with Phase 1, which began in September 2004, now complete.

It included constructing a four-storey building comprised of 15,800 sq. ft. of commercial space on the ground floor and three levels of housing totalling 57 apartments -- 50 of which are already leased, said Kitikmeot Development Corporation chief operating officer Clare Basler.

There are already approximately 49,000 hours of Inuit labour in the project, she said.

Phase 2 is expected to start in the fall of 2005 with Phase 3 following one year after. Basler said the decision to invest was made because of the huge potential in the project.

"Iqaluit is the strongest real estate market in Nunavut and continues to be a strong market in terms of growth and what we believe will be potential future growth," said Basler.

Other investors -- including Sakku Investments, an arm of the Kivilliq Development Corporation and Qikiqtaaluk Corporation, part of the Baffin region's development corporation, declined to put more money in the project.

"It's a good investment not a get-rich-quick scheme," said Basler.

In terms of the overall value, "all we can really say is that in total it's a $50-million project," said Basler.

Phases 2 and 3 are mixed-use commercial and residential developments as in the first go-round. The ground floor will be commercial use and the top three floors for residential units.

"There are roughly 25 to 30 apartments in each of the two phases," said Basler.

Phase 4 is intended to be all commercial.

The start of Phase 2 is dependent on market conditions and an ability to lease the space, said Basler.