SOMBA K'E/YELLOWKNIFE - Two dissenting voices stood alone on city council as a new method of sale was approved for lots in Phase VII of the Niven Lake subdivision during a meeting Monday night.

The 11 lots in the area will be sold in an auction-style ballot draw, despite the efforts of two councillors to convince council that the new process is just a "cash grab" for the city.

"It's not the city's interest to drive the market. In fact, it is our mandate to protect our citizens' best interests as it relates to cost of living and affordability," said Coun. Cory Vanthuyne in response to administration's argument that the new auction-style ballot draw will help the city determine market value. "It seems to me this is an opportunity to get a cash grab and I'm not going to support it."

The new ballot process allows participants to include a bid price that is equal to or higher than the base cost of the property laid out by the city, with the city picking the highest bid. In the case that multiple bidders tie the top bid, then one of the names would be drawn out of a hat.

Before Monday's decision, interested bidders would put their names in a hat and when drawn, they would choose a lot and pay the base price set by the city.

"I believe that doing what we've always done, in terms of recovering our construction costs, setting a fixed profit margin ... and then setting a fixed price, still ought to be a way to go," said Vanthuyne.

Coun. David Wind supported Vanthuyne in opposing the bylaw. Coun. Mark Heyck said he likes the city's new approach and he hopes it works.

"I think this is a relatively creative way of disposing of land," he said, noting that there is a clause in the bylaw that says council can direct administration to adjust the prices from year to year if the lots don't sell.

"Therefore under the proposed model where somebody can bid a little bit higher than what we've listed the base price for, that allows us to go back to some of those less desirable lots a year or two from now and potentially reduce the price of that without the city and its residents and taxpayers suffering a loss overall as a result."

Coun. Shelagh Montgomery said it's important to remember the Niven Lake subdivision has always been a high-end neighbourhood.

"Clearly the homes that are being built are not by your lower or mid-income families in Yellowknife," she said, adding that she's not opposed to people placing competitive bids on elite lots.

Also in the bylaw were the new base prices for the lots, which range from $116,800 to $193,000, depending on square footage.

The bylaw was passed with support from Couns. Heyck, Montgomery, Paul Falvo, Amanda Mallon, Lydia Bardak and Bob Brooks.

Although the sale of the lots has now been approved by council, no date has been set for the ballot draw.

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