'Give the land away if we want to grow'
Councillors brainstorm ways to foster development after failed request for proposals near the Bristol Monument
Shane Magee
Northern News Services
Friday, April 1, 2016
SOMBA K'E/YELLOWKNIFE
The city needs to take a different approach to getting rid of land it has been trying to sell without success, says a city councillor.
There was no interest in a plot of land near the iconic Bristol Monument, when the city sought requests for proposals to develop it. Instead, one councillor suggested giving the land away to foster development. - Shane Magee/NNSL photo |
For Coun. Niels Konge, getting rid of a property like the one near the corner of Old Airport Road and Highway 3 may require a different tack. The land runs along the front of Bristol Monument which was erected in 1970, although doesn't include it, and has an entrance to a trail.
The land is back on the market for $790,000 after a request for proposals that closed in December failed to garner interest, according to Jeff Humble, director of planning and development.
The documents for that RFP state the land would be purchased "as-is" and that the city was seeking a development there "to capitalize on the natural features of the capital vicinity in creating a unique mixed-use, pedestrian-oriented area that reflects the people, history and natural wealth of the City of Yellowknife."
Had someone come forward with a proposal, it was required to include a traffic study and would likely need to go through public consultation.
Previously, the land was subject of a 2012 proposal to build a gas station and restaurant but that ended when an environmental review found the site was contaminated with oil and other fluids associated with vehicles. It was cleaned up prior to the RFP.
Konge, who is also a developer, said the city gets the land essentially for free from the GNWT, so he said vacant land has no value.
"It's not valuable to the city unless we have a plan for it," he said when asked about ideas for the lot by Yellowknifer. He suggested a better idea would be to give it away with the guarantee of a development of something like a truck stop.
"Get rid of this 'if you buy the land you'll get five per cent off your taxes.' It's crap. Give the land away if we want to grow the city," Konge said.
He said if something is built there, like a truck stop, it would create jobs and spinoff effects.
"Everybody is happy. But no, we're going to sit on it for 15 years and ask for - I don't know - half a million dollars. It's stupid," he said.
Several councillors who were standing with Konge gave general agreement to his idea, including Coun. Linda Bussey.
"I think they should just get rid of it at a discounted price. I really like Niels' idea," said Coun. Steve Payne.
"We're already giving deals for people, like in Niven," said Coun. Rommel Silverio.
Council unanimously decided last month to go back and have vacant land along Niven Drive reappraised after city staff proposed selling it to a developer at a discount and increasing the allowed density.
"We have a developer coming and they're asking for deals. Why don't we try that here?" Silverio said about the land by the monument.
Coun. Rebecca Alty suggested taking a deeper look at why the RFP didn't result in any bites.
However, Konge's idea runs afoul of the city's land administration bylaw which sets out land is sold at the appraised value and any costs associated with the development.
"There is not a mechanism to be sold at less than (at the appraised value)," Humble said.
Asked if he thinks there would be appetite for revising the bylaw to allow for something like what Konge proposed, Humble said that's a question for politicians to answer.
The city uses a land development fund, built on the sale of land, to then invest in developing properties.
That means putting in roads and water and sewer connections.
Since the city has used a full-cost recovery method for land, he said that fund has been in healthier condition and the city has been able to bring more land to market.
He said the city has about $13 million worth of land on the market now, which will soon increase to about $20 million as the first phase of Grace Lake South is finished and the Hordal Bagon development is finished.
"If we start giving away land, we start limiting the ability of the city to pursue other land development opportunities," Humble said.
Coun. Julian Morse, who spoke more generally about land sales across the city, said several councillors are seeking a better way to sell land and has to be careful not to manipulate the market.
"We can't force development to happen. Then you're going to have properties that don't sell," he said.
He also referred back to the discussion around the Niven property, saying councillors are "shooting for a fair way to dispose of land."
He noted the city is in a position where it serves as land developer, which is an anomaly.
"With a lot of municipalities, land is not developed and sold by the municipalities. That's done by a private developer so that could be something we could transition into," he said, adding it would require significant research before considering.
