SOMBA K'E/YELLOWKNIFE - Ten years after residents were evicted from the Giant Mine town site by then-owners Miramar Mining Corporation, the houses remain empty and in disrepair.

It's a coveted location, high on a blush overlooking Great Slave Lake, but it's also contaminated with arsenic trioxide from decades of smelting gold at the adjacent mine, and three kilometres from the closest city water and sewer infrastructure at Niven Lake.

A study by the Royal Military College of Canada found arsenic levels in the soil up to 3,300 parts per million. The Canadian guideline is 10 ppm.

As a result, there are no current plans for residential development at the town site or on the waterfront. Residents - all Giant Mine workers and their families living in 20 homes - were evicted as part of the terms of sale of the site from Miramar to the City of Yellowknife.

"The only thing that's being looked at for the next two or three years is recreational in nature," said Mayor Gord Van Tighem.

City councillor Bob Brooks recently told Yellowknifer the vacancy rate in the city is at about one per cent. Despite this, Van Tighem said there is no need to develop at the Giant Mine site. He said 400 housing units could be built elsewhere within Yellowknife in the next year.

Ken Pearman, a real estate agent with Coldwell Banker, said there isn't an overabundance of housing in Yellowknife.

"We've got enough (to meet the demand), if just barely enough," said Pearman, adding he expects to see a fair deal of development in town this summer.

"The demand justifies some development," said Pearman.

Instead of housing residents, the Giant town site will remain as a heritage area, said Van Tighem.

"It's part of the heritage in the region, but it's not an active part," said the mayor, adding the site may be used as a setting for an upcoming movie, and tours were given of the site during Yellowknife's 75th anniversary.

The town site has seen better days since it was closed a decade ago. Vandals on snow machines tore through last winter, and some of the homes were badly damaged.

The adjacent Baker Creek is being cleaned up by the Fly Fishing Foundation and a plethora of government and mining company sponsors, and will one day have a trail system along the shore. There are also plans to build a marina below the town site.

The NWT Mining Heritage Society has requested an extension of its lease of the old recreation centre, to include a warehouse and the A-shaft headframe, Van Tighem said.

Ryan Silke, director of the NWT Mining Heritage Society, said he sees the area as a potential cultural hot spot.

"We kind of envision it as a pretty important tourist destination, recreation destination," said Silke.

He said the society is seeking federal funding to repair and renovate the site. As well, this year the society is building on the exterior display of mining gear that surrounds its main building by the turnoff from Highway 4 to the boat launch area.

"This year we're going to be setting up some permanent plaques," said Silke.

He said the society also plans to hold another Beer Barge fundraiser this summer.