City councillors are debating whether to change a zoning designation from open space to residential to allow housing on Kam Lake lot 551, block three after developer Les Rocher submitted a letter requesting the change.
The block is directly beside another plot of land on lot 551 where Rocher is already erecting 70 mobile homes.
Some councillors are pushing for the city to change the zoning, saying failure to do so amounts to starving developers of land during a housing boom.
"We have to make sure that there's land available for development next year," said Coun. Robert Hawkins. "If we make that (block) available today, it would give full opportunity for a potential developer to develop that next summer."
But others, like Coun. Blake Lyons, urged caution, saying the city needs to fit development plans with needs for open space.
Wait for general plan
Lyons wants the city to hold off on a decision on the land until a new general plan is passed next year. The city estimates it will be finished sometime between June and August.
The general plan, which sets city development goals, is renewed every five years.
Dave McPherson, president of the Yellowknife Chamber of Commerce, agreed that thoughtful planning and a long-term outlook is necessary.
"Our position is not development at all costs," he said. "That does not necessarily mean because we happen to be in a housing crunch right now gobbling up every available piece of property for development."
But the president of the NWT Construction Association urged the city "to address the issue immediately."
"Let's have some options, let's open up those properties so that those that would choose to develop can be as creative as they possibly can," said Bill Aho.
Support from mayor
Mayor Gord Van Tighem also supports moving the property onto the market, although he said the block would have to go through a competitive bid process, like with all properties the city disposes of.
"We've still got a distinct shortage in housing and we have to look at what options are currently available," he said.
"At this point we're still able to operate under the old (general plan) and there are some things that don't need us to have yet another study before we move forward."
Rocher declined comment.