Kirsten Murphy
Northern News Services

Iqaluit (Aug 13/01) - Repricing, rezoning and enlarging Road to Nowhere lots may revive sluggish sales in the beleaguered subdivision, says one city councillor.

"About a third of the leases are sold," said Stu Kennedy, who is also a member of Iqaluit's planning committee.

One suggestion is asking the city to rezone lots to multi-family use. The year-old lots are currently zoned for single-family dwellings. Another possibility involves increasing the asking price of lots, which now go for $50,000 to $60,000, by 25 per cent.

But why raise prices if lots aren't selling?

Multi-family units mean more money per lot for developers -- making the lots easier to sell. "You could feasibly construct row housing on this land and recover a profit," Kennedy said.

"With single-family dwellings, most people are not prepared to mortgage themselves $60,000 (in addition) to the cost of building a house."

Council once hoped leases for 60 lots would be sold this year. Proposed zoning changes -- still at the assessment stage -- are geared toward developers. Expanding lot sizes is also under review.

Kennedy said lots were never priced to turn a profit. "The prices were set to barely cover the on-site costs," he said.

Kennedy estimated 20 single-dwelling units have already been re-zoned as multi-family units in the last year.

"We don't want to continue doing that on a piecemeal basis. That's what we've been forced to do and we've done it carefully," he said.

Unless more leases sell, the city will be unable to repay the $3.9 million it borrowed from the territorial government. The money financed roads, a water and sewer system and other on- and off-site services.

The city has several years to repay the loan, which is known in financial terms as a debenture.

If the planning committee determines that zoning and pricing changes are warranted in the coming weeks, Kennedy hopes the matter becomes a motion before council in the next month.