New developer plans apartment buildings in Iqaluit

MICHAELA RODRIGUE

IQALUIT — Iqaluit’s housing shortage is enticing a new developer into the apartment market.

South Baffin Holdings Ltd. is preparing to build two six-plex rental apartment buildings on speculation on a site across from Joamie School.

Iqaluit-based construction company South Baffin Holdings has built houses in Iqaluit for about three years but now wants to expand its business, said manager Reg Wynes.

“We’ve been building houses. We figured we’d venture a little further than just houses,” Wynes said.

Wynes plans to build two 7,000-square-foot six-plexes. The three-storey buildings will include four two-bedroom units on the top floor, two two-bedroom units on the second floor and 2,000 square feet of commercial space on the ground level.

The plan is to sign up a long-term tenant, such as a government department in need of space. The leasor could then use the apartments for their own employees. But Wynes said the apartments may be leased on a short-term basis.

But South Baffin Holdings wants to proceed with construction this summer, with or without signed long-term leases.

“We’re doing this on our own with our own money,” he said.

Wynes said Iqaluit’s current housing shortage makes it a risk worth taking.

“There’s a housing shortage. The government saying there’s $10 million for housing tells me there’s a major housing shortage. Why not take the risk?” he said.

A minister’s task force on housing recently recommended the Nunavut government spend $15 million on new social housing units this year.

But Wynes said renters shouldn’t expect that the 12 new units he plans to build will drive down Iqaluit’s sky-high rental rates.

“With the cost of land how can you afford to drop prices?” he asked.

Last month, Wynes’ development plans moved one step closer to fruition. A land lease application for a lot across from the Joamie school was approved by Iqaluit town council.

Wynes still needs to complete the architectural designs and apply for a development permit from the municipality. He hopes to begin construction in mid-July or August and have the two buildings completed by the end of the year.