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HAY RIVER - An initiative is underway to try to solve a recurring controversy in Hay River – what to do with a large unused lot on Cameron Crescent.

Town council is considering entering negotiations with the lot's owners to buy the property, and then have residents of the affected area pay for it through an increase in their municipal taxes.

Hay River's Cameron Crescent was the focus of a rezoning battle in 2004 and again in 2008. - NNSL file photo

"This is an option we are exploring," said Mayor Jean-Marc Miltenberger.

Council will vote May 25 on a motion to begin negotiations.

What to do with the .23-hectare lot arose as a controversy in 2004 and again last year when the owners applied to have the zoning changed from institutional to multi-family residential.

The request sparked near unanimous opposition by area residents, who feared a multi-family residential complex would be built on the lot and disrupt the single-family neighbourhoud. They argued that would create traffic problems, make the area unsafe for children and lower property values.

In 2004 and again in 2008, council rejected rezoning by narrow votes.

Miltenberger said there have been informal contacts between council and the lot's owners – Jeff and Erin Griffiths – about possibly purchasing the lot.

However, there appears to be a wide price gap to bridge.

Miltenberger said the town will start at $85,000, which is the appraised value of the land as it is now zoned institutional.

However, Jeff Griffiths said he is paying taxes based on an appraisal of $131,000.

Actually, the owner thinks the property is worth $150,000, which would be the equivalent value of four residential lots.

However, Griffiths said he welcomes the town's initiative and is willing to enter negotiations.

"It sounds good to me," he said.

Griffiths said the other option would have been going to court over last year's rezoning process, which he said was mishandled by the town.

Miltenberger explained that, if the negotiations are successful, the cost could be recovered from residents on Cameron Crescent and those along Woodland Drive within 200 feet of the lot.

Those residents will vote in what Miltenberger calls a "site-specific plebiscite" on whether they are willing to pay for the purchase.

The mayor said he did not know if the residents would support that idea, adding it would likely depend on how much it would cost residents annually and over how many years.

However, he saud, at a rezoning hearing last year, a number of residents stated they were willing to purchase the property.

Ron Karp, who lives on Woodland Drive across from Cameron Crescent and was a prominent opponent to last year's rezoning bid, welcomes the new initiative to solve the issue.

"This thing has been hanging over us like a black shadow for far too long," he said.

Karp said he is unsure whether area residents would agree to pay for the lot through their taxes, adding that would likely depend on the price and how much it would increase taxes and for how long.

"I hope something good comes out of this," he added.

While the details of such an arrangement would have to be worked out, Miltenberger said the property would become part of the town's land inventory and he believes it would likely become a park, which has been suggested by many residents as an appropriate use.

"Council would very much like to solve the Cameron Crescent situation once and for all," said Miltenberger.