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Homes North continues to prepare lots on the site of Block 501 in Kam Lake on Aug. 1. Council appears to be in favour of approving the development contributing a $2.1-million subsidy toward the project. The issue will be brought forward to council during its next meeting on Aug. 26. - Cody Punter/NNSL photo |
City favours $2.1-million subsidy City close to closing deal on Kam Lake housing development
Cody Punter
Northern News Services
Published Friday, August 2, 2013
SOMBA K'E/YELLOWKNIFE
If everything goes according to plan, it won't be long until shovels go in the ground for a major housing development in Kam Lake.
Council said it was in favour of providing a $2.1-million subsidy for the construction of Homes North's proposed housing development on Block 501 on Kam Lake Road, during a July 22 municipal services committee meeting. However, a vote was not held during that meeting.
The 12 per cent contribution, which amounts to $2,144,640, would be used toward any off-site development levies or on-site development expenses relating to paving, curbing and sidewalk construction within a municipal right-of-way or in a designated municipal park space.
Council had previously voted to adopt bylaw 4724 on April 8. The bylaw amended Land Administration bylaw 4596, giving council discretion to offer a contribution of up to 12 per cent on development projects.
"I've advocated for a long time that the city, in order to encourage development and housing for our citizens, has to be an integral partner in all our developments," said Coun. Cory Vanthuyne.
Coun. Niels Konge also spoke in favour of the project, saying that it would help bring the cost of living down by offering more options for prospective home owners.
"I firmly do believe this evens out the playing field in property development," said Konge of the subsidy.
The development will provide a mix of low density single-family houses and medium density multi-family dwellings.
Kevin Hodgins, consultant for Homes North, said the company expects to build 158 low-density single-family homes, while one multi-family parcel of land is being proposed, which will not exceed 60 units.
Despite the benefits of additional housing for residents of Yellowknife, Coun. Phil Moon Son expressed concerns that providing a subsidy would set a new precedent for the city.
"My concern is how are we going to show the taxpayers that this is a good deal?" asked Moon Son.
Konge said building the new homes would expand the city's tax base and would allow for a quick repayment of the investment.
"With 158 homes going in there, it should take about five years for our contribution to be paid back in full," said Konge.
"I think it's a win for the people of Yellowknife and the city," said Konge.
Rebecca Alty added that the city had previously included a 12 per cent land contribution subsidy, but that the bylaw was changed in 2010.
"I don't think we're precedent setting. We're just returning to an older model," said Alty.
Administration also expressed concerns that site variances proposed by Homes North would lead to sub-par lots.
As a result, it proposed rezoning three of the four medium-density parcels to low-density parcels. However, Hodgins argued that the city already has bylaws in place to govern site variance, and said that it should adhere to those bylaws rather than placing further restrictions on the developer.
Hodgins' argument received the support of council.
Hodgins said he is pleased Homes North was receiving the support of the city.
"It's been quite a while to get it to this point," said Hodgins. "It's been collaborative effort with council and administration. We're pleased and we're happy to be advancing," he said.
According Nalini Naidoo, director of communications and economic development, these items are scheduled to be on Council's agenda on Aug. 26, pending agenda review and approval
process.
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