Yellowknife (May 09/03) - Two Negus Point property owners found themselves in the unique situation of appealing their own development permits last week.

Wendy Stephenson and Russell Heslep asked the development appeal board to strike several caveats from their agreements, which they say make it impossible for them to get a bank loan and render the property impossible to resell.

The appeal board is expected to issue a ruling soon.

Council recently ruled the Negus Point developments could go forward on the property when the city and the developers drafted mutually agreeable development agreement. Heslep argued that the fifth and final draft of the agreement is unacceptable for the developers.

The city worries that two properties are laced with arsenic and have asked the developers in the agreement to indemnify them against the possibility of spreading the toxic metal into the city. Heslep said his bank won't finance a development with that condition attached to it.

"This has been a long and stressful process and I don't think it's fair at all for the city to do this."

Stephenson said arsenic levels have nothing to do with development and the city is overstepping its bounds.

She brought a recent study that showed arsenic levels at the property are well below mean levels in downtown Yellowknife.

Also at stake is the future care of an unsurveyed access road that leads to the properties. The road, which runs past a Negus Mine tailings pond, will remain a private road until Dec. 31, 2004, or until the pond is remediated.

The city wants the developer to further indemnify them from cleaning the road up if the mine doesn't complete the remediation process.

The city also asked that the developers commit to remediating the two properties, which lawyer John Bayly, who represented the developers, argued was carried out by the site's previous owner. Bayly cited another study suggesting the gravel in the area had been replaced.

"To accept this agreement would be to accept some things that they don't believe is true," Bayly said. "To issue this development permit would be meaningless because it is impossible to develop at this property."

"We have proven the lots aren't contaminated with arsenic but once that is attached to the title it means way more," added Heslep.

Several residents present at the meeting backed the developers. Jonny Covello said the city could be setting a dangerous precedent with the deal.

"There is arsenic all over Yellowknife, can we expect this kind of deal for future developments?" she asked.