Finance department approves subdivision funding

MICHAELA RODRIGUE
Nunatsiaq News

IQALUIT — Iqaluit will get to build a new subdivision. The only remaining is question is where the money will come from.

Papers must still be signed, but a senior government official said Iqaluit’s request for financing to install pipes and roads for a new mixed-use development has been approved. The Town needs at least $3.9 million to complete the project.

“It went through FMB [Financial Management Board.] I’m just waiting for what they call the rod or the record of decision signed by the Minister of Finance and then we can finalize the arrangements with the Town,” said Mike Ferris, deputy minister of the Community Government, Housing and Transportation Department.

Iqaluit plans to develop 82 residential, commercial and mixed use lots along the Road to Nowhere. Iqaluit says it would face a severe shortage of residential lots if the project weren’t approved.

News of the funding came Monday, two days before a deadline for contractor Kudlik Construction Ltd. to order supplies. The town got a call from the contractor last Friday saying it needed a guarantee of funds by Wednesday to order construction materials in time for the sealift, Matthew Hough, Iqaluit’s project co-ordinator said.

Kudlik had already ordered 16 access vaults worth $812,000 after the Town agreed to dip into their reserve funds if necessary to pay for the vaults.

Now Iqaluit will give Kudlik the go ahead to order the other materials once it receives written confirmation from the government.

The only remaining question, Ferris said, is whether the Government of Nunavut will loan the town money directly or co-sign a loan with the bank.

“We’ve said all along the Town will get financing, whether its financing from the private sector or dollars from us. They will get the dollars they need to do the land development,” Ferris said.

Iqaluit originally asked the government to sign a debenture worth up to $5 million to fund the project. But Hough said it doesn’t matter whether the government funds the subdivision directly or through a private financier.

With money in hand, Iqaluit hopes to complete construction by the end of September. At the end of October, a ballot draw should be held to lease the residential lots, Hough said.

“We’re on a very tight time line but it only takes a couple of months once we get the go ahead,” Hough said.

The residential leases are expected to cost $40,000 to $50,000. Lease holders can then build on their land.

The project will make a significant dent in Iqaluit’s housing shortage. The Town estimates it will need another 460 housing units during the next two years. The Road to Nowhere subdivision will add up to 132 new homes.

After this year’s project is complete, the Town will re-examine Iqaluit’s housing supply and may plan more subdivisions, Hough said.