Sold: millions in GNWT housing

by Doug Ashbury
Northern News Services

NNSL (Dec 22/97) - Looking to buy a trailer in Igloolik? Or maybe a fourplex in Fort Simpson?

These are two of 96 GNWT-owned real estate properties still up for sale.

About a year ago, government opened up 317 units appraised at $20.6 million to private real estate agencies.

Since then, the GNWT has received offers on or sold 219 properties amounting to $11.1 million.

Rod Stirling, NWT Real Estate Association spokesperson and Coldwell Banker manager, said Wednesday that deals have closed on 70 GNWT properties and sales are pending on 148 others.

Coldwell Banker, by far the North's largest real estate agency, has sold 90 per cent of the government properties listed.

In all, about $7.5 million worth of GNWT real estate remains on the market, Stirling said.

The sell-off is part of the territorial government's exit from owning real estate.

In the east, properties remain for sale in 16 communities from Kimmirut to Clyde River, while in the west, government owns properties in 15 communities, from Trout Lake to Tsiigehtchic.

Prices range from around $9,000 to $600,000 for the properties, most of them houses averaging $60,000 to $80,000.

As well as Coldwell Banker, Homelife Sunrise Real Estate, Century 21 and Re/Max in Yellowknife, and Hay River's Conrad Realty Ltd. and Greenway Realty Ltd., sell the properties. The Re/Max office in the North recently closed.

Prior to opening up the business to private real estate agents, the GNWT Housing Corporation sold the properties.

"It's been welcome business," Stirling said.

"Business has been more challenging in Yellowknife," he said.

"The timing was great."

The move not only gave real estate agencies more property to sell, it gave them more knowledge of the North, Stirling said.

Logistically, selling these properties can be something of a challenge.

Much of the communication takes place by phone and fax.

In each community, government contracted with the local body, such as the hamlet office or housing authority, to maintain the buildings.

Sometimes, said Stirling, government will negotiate on price.

The selling of these properties is something of "a coming of age" for government staffing, Fred Chambers, responsible for the GNWT's staff housing policy, said.

For years, staff housing has been a perquisite to come North. Staff housing will continue for some as the GNWT has negotiated leases on several properties.

Government has been selling properties for 20 years but it's only in the last two years that it has taken a more aggressive approach to divesting itself of real estate, Chambers said.

"Occupants often buy the unit. A number of long-term vacant units are being sold to local people," he said.

"In Tuktoyaktuk, we had a property that faced demolition. Someone said they'd pay $5,000. They probably put $30,000 or 40,000 into it to rehabilitate it," Chambers said.

"That house, presumably, is still there, and somebody lives in it."

Chambers believes there should be local solutions to housing, not only on availability but also on maintenance.

"If I want to replace the carpet in a government-owned house, I have to compete with the rest of government for funding to have that done."

Government has a role to play, but perhaps housing is an example of how government has become too entangled in people's lives, he said.