Home page

Text size

E-mail this page

SOMBA K'E/YELLOWKNIFE
The city's latest method of selling lots to the highest bidder is still generating debate on city council.

Mark Heyck: Councillor is in favour of selling lots to the highest bidder. - NNSL file photo

Councillors David Wind and Cory Vanthuyne say selling lots to the highest bidder is driving up the cost of housing in the city; others argue that letting the market decide helps generates much needed revenue for the city.

"The city, being the only purveyor of land in (Yellowknife), has an obligation to its residents to ensure the lots are disposed in a manner which all the residents have a reasonable prospect of obtaining land through the process in which the city has in place," said Wind.

The Land Administration Bylaw, he pointed out, which deals with the sale, disposal and acquisition of land can only do so through ballot draw, call for development proposal, or public advertisement.

"When we revert to a bidding process it puts the city in conflict with the goal of affordability. Anything the city does that drives up the cost of development of housing and other costs, like taxes, I think we owe it to our residents to seek out those items where we could to a better job and try to work toward our affordability goal."

He also pointed out that the idea for a bidding process is not in the Land Administration Bylaw, which states that a ballot draw, call for development proposal or public advertisement are to be the means in which land is disposed.

Vanthuyne similarly railed against "the idea of pitting citizens against each other in an auction-type of style" because it ultimately clashed with council's goal to allow for more affordability.

"Absolutely," he said when asked if his position was for greater lot affordability over more money for the city.

"That is the number one reason why I wouldn't support the motion."

Wind attempted to amend a pair of bylaws earlier this month for the sale of properties on Enterprise Drive and Grace Lake that would require administration to market the lots on both developments through a "ballot draw" as opposed to a "bidding process." A ballot draw would require the city to sell a lot at an advertised price to whoever had their name drawn, while the new system requires the city to lots to the highest bidder.

"If it is on a bid and more than one person wants a particular lot, they would take an amount above and probably bid that," said Mayor Gord Van Tighem of the bidding process.

"So it allows for the potential of a little extra revenue for the end of the thing. When you get to the less desirable lots, you reduce those prices or put into upgrading the area."

Council rejected Wind's amendments at a regular city council meeting, April 10. Council also passed development schemes for both locations.

The city has traditionally gone with an open ballot draw, but has been switching to a bidding process over the past year. Eleven lots went up for sale to the highest bidder in Phase VII of Niven Lake last year.

The Enterprise Drive development, which includes 35 lots, is currently zoned in two pieces as growth management and industrial. City council is contemplating whether to rezone the land to allow mixed commercial and light industrial uses.

The nearby Grace Lake development includes 30 waterside residential lots on part of the the north side of the lake.

Other councillors said it would be irresponsible for the city to not seek out the best possible price for land.

"What better way to allow for market value than to allow people to pay what they will pay for a piece of property," said Coun. Mark Heyck.

"It allows the city to proceed with a higher value."

Coun. Bob Brooks strongly supported Heyck's argument, saying "the market value (should) let it set the value."

“One of the things I like about this was with this process it seemed to work very well. Rather than luck, I prefer planning. I find that I would prefer the planning option to go through with this process than luck. ”

Van Tighem said appraisals for the lots are to be done, which could be complete for Enterprise Drive within the next couple of weeks. Grace Lake property appraisals will come after that.

Construction at both locations could begin before the end of the year.

We welcome your opinions. Click here to e-mail a letter to the editor.