SOMBA K'E/YELLOWKNIFE - Bill Aho thought he was doing the city a favour last summer when he opened up a piece of his property on Old Airport Road for a temporary building to house the Food Rescue program - a charitable group that collects unsold food from grocery stores and gives it to the poor.

Niels Konge, executive vice-president of the NWT Construction Association, stands in front of the only home under construction at Phase VII of the Niven Lake subdivision, which he is building. He says the city’s zoning bylaw is shutting down development. - Cameron Ginn/NNSL photo

That's why he was astounded when the city demanded a $7,500 deposit to pay for landscaping requirements - planting trees and bushes - needed in order for Food Rescue to obtain a development permit for the building.

Under the city's current zoning bylaw developers must prove landscaping requirements have been met before the deposit is given back.

Aho paid the deposit so the organization could continue building.

"A worthwhile cause like that, I would have thought the city would have bent over backward, not put up every hurdle possible," said Aho, owner of Central Mechanical Systems in Yellowknife.

"This is a tent on a piece of property."

Aho was one of about 30 people to attend a meeting by the NWT Construction Association at the Tree of Peace Friendship Centre on Thursday, where many in the crowd shared their annoyances regarding the city's zoning bylaw, an ordinance they say is too strict and is effectively shutting down development in the city.

"(The city) is well aware of the problems, I mean everybody in this room has been down there and told them that there's problems with a multitude of issues," said Niels Konge, the association's executive vice-president.

"They just haven't done anything about it."

The proverbial canaries in the coal mine are Phase VII of the Niven Lake subdivision and the Engle Business District.

Out of 31 lots at Phase VII, only four have been sold and only one home started, which Konge is building.

The city held a ballot draw for the Engle Business District - a long road at the outskirts of town that connects Highway 3 to the Kam Lake Industrial Zone - last October but didn't sell a single lot.

Konge said the reason why developers are staying away at both locations is because of the zoning bylaw.

At the Engle Business District, which is essentially an extension of the Kam Lake industrial zone, chain link fences are forbidden, as are caretaker homes.

Development of homes at Niven Lake has stalled because of height restrictions on homes, and rules forbidding garages extending past front entrances, among other irritants, according to Konge.

City hall re-drafted portions of the zoning bylaw this year, which went to council for a vote, but the amendments were put on hold following a public hearing last month. Recommendations arising from the public hearing are expected to be presented to council in January.

Jeff Humble, director of planning and lands, said city council has heard from Konge and other developers about their concerns and they have been taken into consideration.

"We'll be reviewing all of those (issues), and come up with something more flexible," said Humble. "Hopefully we'll make things much easier for developments coming forward and potentially more construction in 2010."

Konge said the entire zoning bylaw needs an overhaul, but he is not optimistic city hall is getting the message.

"I don't hold high hopes that administration is going to make any changes," said Konge.

"Administration has known about these problems ever since they put these lots at Niven Lake up for sale a year-and-half ago, and they haven't done anything."

- with files from Mike W. Bryant