Yellowknife (July 30/04) - City Hall needs to break with tradition and encourage development in Old Town to attract tourists to Yellowknife, says developer Vaughn del Valle.

"If two-or-three storey lodges is our tourism vision, we're in serious trouble," del Valle said after council rejected his bid to build an 11-storey hotel complex and houseboat community in Back Bay.

"Council does not seem prepared to look at the larger picture."

Del Valle said tourists aren't interested in staying at hotels located near the airport or downtown. Instead, they want to experience Old Town and its setting, he said.

But some councillors worried del Valle's complex would disrupt the area's atmosphere, characterized by low rise, single family residences.

"I don't think the location selected is appropriate for a project of this scope," said Mark Heyck.

"The impact is just too severe," added councillor Alan Woytuik.