Mike W. Bryant
Northern News Services

Yellowknife (July 17/02) - The territorial government has given the green light for the City of Yellowknife to borrow more than $3 million to develop two additional areas in the Niven Lake subdivision.

Mayor Gord Van Tighem said the GNWT gave the city the nod of approval to borrow earlier this month.

But he said if everything goes as planned, the city may not have to borrow any money at all. He also vowed that the GNWT's permission to borrow will not follow the same route as another scheme that left ratepayers on the hook for more than $3 million two years ago. The city borrowed $3.1 million in May 2000 to buy out developers and take over the site but couldn't sell the lots.

Ratepayers didn't have a say then, nor do they now, but Van Tighem said it is a much sounder plan this time around.

"We needed the ability to borrow in case the sales didn't happen," said Van Tighem.

"We will probably not have to borrow for Phase III. We will have the authority to borrow, but we won't need to because the sale of the lots will pay for the infrastructure, which is the way it's suppose to work."

Under rules outlined by the GNWT's Department of Municipal and Community Affairs, only the minister responsible can waive ratepayer approval to borrow money.

The city put the Phase III lots up for sale a month ago, and have so far sold 11 out of the 20 lots available there. All but one lot each in Phase I and II have been sold to date. Phase IV of development is also included in the borrowing plan. The city is hoping to eventually develop Niven Lake into seven separate phases.

Hundreds of homes needed

Van Tighem said he hopes a cascading effect is created where each phase in development pays for the next one, and thus negates the city's need to borrow money for future development of Niven Lake. Nonetheless, the city can now borrow money if it needs to. With a projected need for 400 housing units over the next 18 months, Van Tighem called that scenario unlikely.

"You borrow, you put in the pipes for water and sewer, you put in the roads, and you sell the lots," said Van Tighem. "You sell the lots and you repay the loan."

The borrowing scheme will likely be up for council approval at its next scheduled meeting July 22. The plan appears destined to go through.

Even hard line anti-tax crusaders like Coun. Alan Woytuik appears set to vote in favour of it, although he says he would like to see the plan include an option where developers can repurchase lot parcels and develop infrastructure themselves.

"I don't have a problem with it," said Woytuik.

"We have to do something to ease the housing crunch."

Councillors Wendy Bisaro and Dave McCann also said they would vote for the plan to borrow money if needed.

"I think we're in a period of optimism as opposed to three years ago when there was a lot of unknowns," said McCann.