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An industry feeling threatened
Regulations and fees hurting industry – developers
Tim Edwards Northern News Services Published Saturday, February 6, 2010
The meeting, second since last December, began with Niels Konge, vice- president of the NWT Construction Association, asking what the territorial government could do to help the industry, and drive down the cost of housing. Konge proposed the government open up 100 lots of property territory-wide for development. Though four city councillors were in attendance, no one from the territorial government showed up, or if they had, they did not make their presence known. Discussion quickly turned to the longstanding problems developers are having with the city – a relationship described as "adversarial" by Bill Aho, owner of Central Mechanical Systems Ltd. "There's 27 lots available from the city for residential development. That's not very many, especially if there's 100 more people who want residential homes," said Konge. Many members of the audience asked why more lots were not available. Again, amendments to the zoning bylaw in regards to Phase VII of the Niven Lake subdivision was a hot topic. Aho said paving and sidewalk costs were added into the cost of the lots which "jacked your land costs by 20 per cent right away." "We understand the urgency of the current situation," said city councillor Cory Vanthuyne, who talked at length during the meeting. Aho said the high costs of land were tough to stomach. "It'd be crazy to spend $160,000 for a piece of rock. There's just nothing there to develop within a reasonable cost," said Aho. Developer Gerry Borschneck laid a fair amount of blame for high housing costs on the city's energy-efficiency standards – adopted in 2008 -- which he said boosted construction costs by $40,000 to $50,000. The new standards, some of the most stringent in the country, require new homes to be built at an EnerGuide rating of 80; homes in Yellowknife built before 2008 were typically in the 65 to 72 range. City councillors Vanthuyne, David Wind, Amanda Mallon, and Paul Falvo were in the audience. Wind expressed frustration at the model for land distribution in the territory. "I think we need a completely different model for housing," said Wind, who requested submissions be sent to city administration for the city's General Plan, which is being reworked this year. "All our land is parcelled out in small pieces and funnelled through MACA to the city of Yellowknife and then onto the housing market, and I think that's a big problem." Konge said notes outlining the problems and the solutions proposed at the meeting, and these would be put into a letter and sent to city council and MLAs.
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