Yellowknife (Jan 17/07) - The City of Yellowknife is in the process of beginning another huge land deal, with some of the areas already in use by the city, and other sections that lie bare being considered for future development.

If the deal goes through, the city will own the Yellowknife Golf Course, the Folk on the Rocks site, land around the watershed - located southeast of the Yellowknife River - and a large parcel of land to be used in the Niven Lake development plan.

These lands are not part of the recent Yellowknives Dene land withdrawal, and are under the ownership of the GNWT as commissioner's land.

At a Priorities, Policies and Budget Committee meeting at City Hall on Monday, councillors peppered administration with questions.

Coun. Shelagh Montgomery wanted to know why the city is planning to bid on land already in the Niven Lake development plan.

"If for some reason this land acquisition does not happen, would this affect the Niven Lake Development plan?" she asked.

Jeffrey Humble, director of planning and development, said the city is hopeful there won't be interference.

"It would absolutely affect plans for phase 8," he acknowledged. "We're hoping that there would not be an objection to this land acquisition."

Administration didn't have an overall cost estimate for the land because they have not begun negotiating with the GNWT.

Coun. Kevin Kennedy wanted to know if there had been any discussions between the city and the territorial government on the issue.

"MACA (Municipal and Community Affairs) is aware of our interest in at least two parcels of the land, including the Folk on the Rocks site," Humble replied.

Council passed a motion in 2005 to inform MACA of the city's interest in acquiring land within municipal limits that is subject to the Land Lease Only Policy and the Akaitcho Interim Measures Agreement process.

Monday's motion was for the city to make an official proposal to the GNWT.

However, environmental issues may complicate the purchasing process.

According to one section of the city administration's report, the lands the city wants to buy "have contamination issues." These lands include the Taylor Road extension adjacent to Rat Lake - which is now leased by Miramar Con Mine - a portion of Tin Can Hill and the golf course. The report states these lands "will require verification from MACA that they have been remediated to the appropriate environment standards."

The report also indicates "environmental assessments may be required prior to the city acquiring title."

Montgomery said she liked the idea of MACA cleaning up the land before any purchase.

"It would be nice to see the land remediated by MACA before the city takes over," she said.

Coun. Mark Heyck zeroed in on the Con water front and Tin Can Hill parcels of land.

"I'd prefer those areas were remediated (by) MACA to our satisfaction before we made a decision on purchasing," he said.

Coun. David Wind had questions about Miramar Mining's lease at Con Mine. "Are we going to negotiate with Miramar to give up the leases, or are we going to honour these leases until the contract is done in 2011?" he asked Humble.

"Miramar would definitely be involved...," Humble replied, without going into detail.

Despite the many questions, most of council said they were pleased with administration's attempt to buy land and develop housing on it.

"I like the notion of the city acquiring land early, before developing," Coun. Dave McCann said.

"More than once this has hurt us in the past."

Wind also said he was encouraged by the city's

plan.

"I'm happy to see the city go in this direction," he said.