Yellowknife (Jan 19/05) - A proposal to build an apartment on a nature preserve was a given a thumbs down by members of city council Monday, but not before the developer told them they need to find a way to free up some land.

"The problem we have in Yellowknife is you really don't have any land left," said Greg Herndier, president of New North Projects. The company proposed to add a third low-cost apartment complex to two others it owns near Niven Lake.

"I think you got some serious issues with your land supply."

Herndier said it is becoming increasingly difficult to find land, especially to build multi-residential units.

He said the old dump site on the east shore of Niven Lake was perfectly suited for this.

The land in question had been a dump until the late 1960s. Eleven years ago, the city covered the site with landfill and split the zoning between nature preserve and parks and recreation.

Several neighbours told a city committee Monday that it should stay that way. They said they don't want a another four-storey apartment complex added to an already busy neighbourhood.

"I don't know what the occupation rate is but it must be pretty high," said Norm Mair, who lives on 49th Avenue.

"Another multi-residential unit will definitely over-populate the area."

Mair said he noticed wildlife in the area - particularly ducks - decline in recent years, and fears another apartment block could only do more harm.

His neighbour, Paul Jones, said he was concerned about increased traffic, adding he'd prefer the city build a park on the site.

Jamie Bastedo, well-known for previous environmental stands on development, turned the tables by suggesting that the tax dollars used to cover the landfill shouldn't be wasted by turning it over to a developer.

Prior to speaking, Bastedo played a video from the early 1990s, showing a rusted out car and oil drums covering a rocky outcrop where the nature preserve now exists.

"This is another example of (zoning) being changed willy-nilly without any thought to it," said Bastedo.

Herndier said an environmental consultant told him that the dump contained only inert rubbish, and was safe for development.

But, ultimately, council went along with a recommendation from administration to reject a proposed zoning change to medium-density residential.

Administration suggested that the spot would probably make a better park or playground.

"What was apparent to me was that anything labelled nature preserve was yet to be developed in someone else's mind," said Coun. Bob Brooks.

"I'd prefer if none or very minimal development was to take place."

Coun. Blake Lyons said council is under intense pressure no matter whose side it takes.

"The territorial government imposed a lease-only policy on commissioner's land," said Lyons.

"We are being pressured by them. We are being pressured by developers, and adjacent residents. There has to be a balance somewhere."

Herndier, meanwhile, said the city's demand for inexpensive housing continues to grow.

"It's fine if you're in Yellowknife and own a home," he said.

"But this city still needs apartments built to increase vacancy, and stabilize rents. The only losers today were the renters, not me."