SOMBA K'E/YELLOWKNIFE
City council approved sending the first phase of construction of the Grace Lake South subdivision out to tender last week.

Coun. Niels Konge said last week he's excited about Grace Lake South moving forward. The subdivision south of the Kam Lake neighbourhood will begin with 31 lots in the first phase and will eventually have 81 properties. - Shane Magee/NNSL photo

"I'm obviously excited that this goes forward," Coun. Niels Konge said last week at a city municipal services committee meeting. Konge is president of Konge Construction Ltd.

Coun. Julian Morse questioned why the staff report on the issue didn't involve a discussion about the impact on the housing market of bringing the subdivision online.

Mayor Mark Heyck said that's typically a discussion at an earlier stage of approval, which took place during the span of the previous and current council.

The work expected to begin later this year will see a new roadway that branches off Kam Lake Road and runs roughly parallel to Grace Lake. The first phase will have 31 lots, some on both sides of the new road.

Jeff Humble, the city's director of planning and development, said the work will involve some blasting work because of the terrain in the area. The roadway won't have a curb or sidewalk, he said.

The work for only phase one is estimated to cost $4 million, which a memo to council states will be recovered in the lot sale prices.

Based on that estimate, the average lot could cost around $132,000, although the lots will be appraised and a final price will then be determined.

A successful bid will return to council for approval before construction starts. The schedule outlined in a staff memo shows road construction in August followed by marketing of the subdivision and ballot draw for the lots in September.

Humble said the lots will be distributed via lottery system, with the first drawn name getting first lot choice. The city already has a list of people interested in purchasing the lots once ready.

Humble said based on how quickly Grace Lake North sold, he expects the latest development to also sell quickly.

The whole development will be three phases, expanding to meet demand, and will have 81 lots.

Unlike the north side of the lake, the south side development will retain a 100 foot reserve along the waterfront for a rough trail.

Last year, council approved an 82 per cent discount for five years on a lease fee for a proposed golf course that would be adjacent to the development.

The nine-hole course was proposed by Arctic Farmer owner Darwin Rudkevitch, which leased the area as a sod farmer previously.

On Friday, Rudkevitch said he's still working on the project but the course is likely several years from being ready.

"It's firming things up, it means the city is actually going ahead with that side of the lake, which is great," he said when asked what the construction this year means for the course.

The course would have grass, unlike the sandy course at the Yellowknife Golf Club.