Nathan VanderKlippe
Northern News Services

Yellowknife (May 10/02) - The city is on the verge of borrowing as much as $3.3 million to open up three new areas for development in the Niven Lake suburb.

With only eight lots left to sell in the first two areas of Niven Lake -- Phases I and II -- the city is trying to capitalize on Yellowknife's booming housing market.

Two new phases, III and V, will likely open this summer. A third, Phase IV, will probably open next summer.

Phase III has 20 single-unit lots, while Phase V is zone medium-density. The city wants to encourage developers to build condominium-style townhouses in that area, and expects about 75 units could fit in the allotted space.

No prices have yet been determined for the new lots, as the city is still surveying the land.

At their Tuesday corporate services meeting, city councillors discussed borrowing up to $3.325 million. That money would allow the city to install the roads and sewer systems necessary to service the new areas.

Councillors will vote at the Monday council meeting whether to ask the Minister of Municipal and Community Affairs Vince Steen for permission to take out the $3.325 million debenture without seeking ratepayer approval.

No councillors voiced opposition to the idea, so the measure will likely pass easily.

The entire $3.325 million may not be necessary, however. The city is planning a May 30 ballot draw for the new lots. Sales from the draw will be used to offset the amount the city needs to borrow.

Lands manager Monte Christensen said the area "is going to be a hive of activity ... this summer."

With a rocky topography and a number of picturesque views, Christensen said, "the Niven lake subdivision will be a nice place to live when it's completed. It's got a lot of natural features, it's close to the downtown. The only disadvantage is, it's costly to develop."