Iqaluit in legal spat with Nunavut developer over old RCMP lot

Nunastar Properties, which owns a number of buildings around the old RCMP lots in Iqaluit. filed a civil suit March 31 with the Nunavut Court of Justice, calling on the court to rescind awarding of the lot by the city to developer TBG Construction Ltd. (PHOTO BY STEVE DUCHARME)

The City of Iqaluit will need to defend its decision awarding the old RCMP detachment lot on Astro Hill to a developer last month, following a civil suit filed by another developer alleging the city breached procedural duties during a recent call for submissions on the site’s future.

Nunastar Properties—which owns a number of buildings around Iqaluit’s old RCMP detachment—filed a civil suit March 31 with the Nunavut Court of Justice in Iqaluit, calling on the court to rescind the city’s awarding of the lot to developer TBG Construction Ltd.

According to Nunastar’s originating notice filed with the court, Iqaluit’s city council deferred on awarding the lot as planned on March 8—the date outlined in its original call for proposals.

City council waited about a week afterwards before awarding the lot on March 14, after informing the three developers they would have to wait for a decision.

Nunastar alleges that by deferring its decision beyond the date stipulated in its proposal call, the three developers that submitted bids—including Nunastar and TBG—were no longer eligible to receive the lot without resubmitting.

The city’s ability to defer the awarding of the lot was also not mentioned in the original proposal call, which was sent out Feb. 1, Nunastar alleges.

Nunastar has been after the old RCMP lot since at least last November, when it requested that the city sell them rights during a pitch to city council.

At the time, Nunastar Properties’ chief operating officer, Bruce Alton, told councillors that the property would join other buildings on Astro Hill operated by Nunastar, in a rebranding of its properties as the “Astro Hill Centre.”

The City of Iqaluit picked up the old RCMP lot, along with a parcel of other buildings on Queen Elizabeth Way, when the federal government relinquished its rights to them last February.

Council did not give an immediate answer at the time, and instead issued an open call for developers to make a bid a few months later.

Nunastar now says the city breached its own bylaws by not issuing a new call for proposals after the original call-out expired on March 8.

“Council failed to act fairly and in a transparent manner in making its decision,” Nunastar’s filing notice stated, calling its later decision to award the lot “arbitrary.”

Nunastar and the City of Iqaluit are expected to make an appearance for opening submissions April 10 at the Nunavut Court of Justice.