Yellowknife (Oct 03/03) - The long-proposed connector highway project between the Kam Lake industrial subdivision and Highway 3 is now seen as a necessary step for growth, the manager of the city's public works department says.

With the recent awarding of a $1.7 million contract to Volker Stevin Contracting Ltd. for the development of road work and ditching, Kefalas says the city is on its way to improving access and thus attracting development.

"It appears that's the only way we can go. Council indicated they want future land development in terms of industrial lots," Kefalas says.

Once the current development begins, new access roads off Deh Cho Boulevard will provide access to 10 new industrial lots.

More lots will be made available next spring.

"Right now that's probably the best area to start developing.

"It's trying to promote the bypass road heading out towards the airport and up along the old Forward Operating Location (FOL) site road."

Several cost estimates have already been done for building the connector road and Kefalas says the city has already discussed with Arctic Airports the future use of the area.

"We've indicated to planning and lands that they should proceed with trying to acquire that land," Kefalas says.

Kefalas estimated the building of the connector road to cost between $6 million $10 million.

For this current development, the city has approval within its budget to borrow up to $1.6 million.

With the cost of engineering and contracting to be $1.8 million, the deficit of $200,000 will be recovered through the sale of the industrial lots.