Yellowknife (Apr 30/03) - After months of trying to interest developers in Niven Lake Phase 4, the city now plans to develop and sell the 41-lot parcel itself.

All 41 lots will be offered for sale by ballot, tentatively at the end of May.

The city is pushing forward quickly with the subdivision to enable lot buyers to begin construction this summer.

Utilities contractor Volker Stevin was lowest of two bidders for roads and services installation at $1,987,820.

The losing bid was just $120 higher.

"We hope to see blasting start this week," said public works manager Dennis Kefalas.

If all goes on schedule, house construction could begin on some of the lots by about the middle of July, said Monte Christensen, manager of planning and lands.

As with previous city ballot sales, buyers will be restricted to one lot each.

Coldwell Banker will manage the sale for the city.

Co-owner Ken Pearman said the process of evaluating the lots will begin next week.

Selling prices will reflect the city's need to recoup its $2 million-plus development costs as well as "fair market value," he said.

Phase 3 lots sold by ballot for prices ranging from $65,000-$79,000.

Pearman said he expects prices for phase 4 lots will be similar.

The Yellowknife Chamber of Commerce, long critical of the city's role in land development, said it appears there was little other option given the lack of interest by developers.

"It is disappointing that they have to go in and do it, but if they are forced into it then certainly they have to get the lots onto the market."

McPherson described ballot sales as "probably the fairest way of going about it given the current market."

But Phase 3 lot prices were simply too high, he said.

The Chamber has called on the territorial government to provide infrastructure money to help the city keep land costs down.

"We have asked them for two years to do this," said McPherson.

"They did put an infrastructure program in the 2002-2003 budget, but only for non-tax base communities, which is absolutely of no use to us."

He said a similar program in Yellowknife could reduce lot prices "by as much as $25,000 per lot."

Townhouse negotiations

Meanwhile, the city is in negotiations with an interested buyer for Niven Lake Phase 5, an undeveloped parcel planned for 70-75 townhouse-style units.

Cristensen said the city hopes to have a deal in place for the property by the end of May.

Mayor Gord Van Tighem, as reported last week, is anticipating 500 to 600 new housing unit starts in the city in the next six to eight months.

The mayor was travelling and unavailable for comment.

Cristensen said that would be "high" and said it is likely he was referring to both new unit starts and construction already under way or nearing completion.

This includes Polar Developments virtually finished 110-unit highrise, and a 118-unit complex being built by Nova Builders near the Ecole St. Joseph's school.

The Nova project was initially planned for 60 units but was scaled up given the housing crunch in the city.

Nova owner Mike Mrdjenovich said earlier this year the company will decide whether to rent or sell the units when construction is completed.

The city's projected residential development at the start of the year was 217 multi-family and 130 single-family units.