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Manufacturer frustrated by City's silence
No response to 'ambitious' affordable housing proposal despite promise from mayor

Thandie Vela
Northern News Services
Published Wednesday, August 3, 2011

SOMBA K'E/YELLOWKNIFE
Several months have passed since Manuel Jorge proposed his plan to erect a new affordable housing development within the Kam Lake Industrial Park, and the Yellowknife manufacturer is frustrated that he has received no response from the City of Yellowknife.

NNSL photo/graphic

Manuel Jorge stands in front of his business Energy Wall and Building Products Ltd. on Saturday afternoon. Jorge says he is frustrated that he has not received a response from the city about his ambitious affordable housing development plan. - Thandie Vela/NNSL photo

Jorge, the owner of Energy Wall and Building Products Ltd., outlined his plan -- which he has had in the works since 1989 -- in a Nov. 3 letter addressed to the mayor and council.

In December, Mayor Gord Van Tighem dubbed Jorge's proposal to develop the new residential area with as many as 900 homes, all priced between $150,000 and $250,000, "very ambitious" but still in its infancy, and said city staff would respond to his idea in writing.

Jorge said he and his design and project manager Ric Sabalboro, are still waiting.

"We put a lot of time and money into (the proposal), just to be ignored," Jorge said. "I don't think that's fair.

"If I'm out to lunch then I just don't proceed with it, I have better things to do."

Van Tighem said the city's planned Enterprise Drive road extension near Grace Lake, where Jorge hopes to acquire about 450 acres of land for the future development, can be available to Energy Wall, but the company has not shown they have the money to pursue the plan.

"It's very good to have people with vision actively involved, but in order for his vision and concept to become closer to a reality, it's going to require some money," Van Tighem said.

Using residential subdivision Niven Lake Phase VII as an example, Van Tighem said including the road, electrical, water and sewage servicing and some levelling of the land, each lot sells between $100,000 and $145,000.

"You cant have the entire city paying for a project for one person or company," he said, adding the onus is on the company to come up with the budgeting.

"(The city) got the land for one dollar," Jorge said, insisting the raw land should be sold for no more than $3,500 per lot and $65,000 after servicing. "Why do they want to rob people?"

Jorge said his development is "totally different" from the Niven Lake development, because they would maintain the nature of the land without blasting and will not require water sewage infrastructure with the use of a sewage pump-out system.

Even without the water sewage infrastructure, the cost per lot would still be about $100,000, Van Tighem said, in order for the City to recover the cost of putting the roads in.

"And then you need the wherewithal to put up the structures," Van Tighem said. "It's not a small venture."

Jorge estimates the total cost of the project to fall between $350 and $400 million.

"Would I start doing something like that if I didn't know we could put the finance package together?" he said, adding the project, once given the green light, would be funded mostly with private investments, and developed as each lot pre-sold.

"All I'm asking is whether the city is willing to work with us with the land," Jorge said, adding the social impact and economic contributions outlined in the proposal would be a significant value-add to the city.

"Why hasn't the city answered back to the proposal with a yes or no? At least a response, so I know what they want," Jorge said.

The manufacturer said he is now considering approaching the city councillors independently to get each one's opinion on the project.

Van Tighem said Friday he was striking up a written response to Jorge, expected to be sent in the next few days.

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