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SOMBA K'E/YELLOWKNIFE - The Bella Dance Academy's close proximity to Petro-Canada's fuel storage site has some councillors worried the business's location is inviting disaster.

"There's an inherent danger of mixing people with a setting like this," said city councillor Dave McCann, referring to a propane explosion in Toronto last August.

In that case, a distribution centre had been built close to a residential neighbourhood and when the centre suffered a series of explosions, an estimated 12,000 people across a 1.6 km radius were forced from their homes.

The fuel site's nearness - one lot away - was the major concern of council, which met Monday afternoon to discuss whether to permit the dance studio and the adjoining Yellowknife Guild of Arts and Crafts to stay in the industrial zone.

While Jeff Humble, city's director of planning and development, told council safety checks would be issued if the permit was approved, he added there are always risks in an industrial zone.

"There is really no way of getting around what might happen at the Petro Canada site," he said.

Humble added while both groups occupying the site should have received a permit before moving into the building, which was zoned industrial, both were unaware they had to do so.

If the permit is approved, both the guild and the academy are required to go through the entire building permit process - which includes addressing fire safety concerns.

City suggests smart growth tax incentives

Following an intensive round of consultations and studies in 2008, city administration is preparing for the creation of a smart growth tax incentive policy to encourage revitalization and redevelopment in the city.

If given the go-ahead at next Monday's council meeting, the policy will target things like industrial relocation and heritage preservation.

"Right now it's only in a framework structure ... there will be some tweaking, obviously, and then we need to get into the nitty gritty details of how exactly (the incentive) would operate," said Humble.

One proposal suggests those who relocate from the industrial properties on Old Airport Road to the Engle Business District should receive a five-year tax exemption as an incentive.

While the city has had some difficulty filling spots in the business district, Humble said Old Airport Road is actually the main focus of the proposal.

"We want to improve the aesthetics and the image (there)," said Humble, who added the area is viewed as the gateway into the city.

The incentive policy would also promote "green" construction in Yellowknife, new residential construction and the remediation of 50 "brown field" sites - those with environmental issues - around the city.

Downtown enhancement committee discusses garbage bins

The downtown enhancement committee was disappointed the purchase of six $2,000 garbage bins has been delayed, according to minutes from a December meeting recently presented to council.

The dual recycling/garbage bins were approved last October, but the bins have yet to be purchased after one local business owner complained she was passed over for the contract.

At the committee meeting there was discussion on "how much time and effort this committee has expended in finally choosing a suitable bin ... only to be disappointed by having the project put on hold due to this complaint," read the minutes.

Humble said the purchasing has been referred to the community services department, whose director has been out of the office since mid-December.

"We'll have some direction on that in the next two weeks," he said.