New pricing policy

The City of Iqaluit has adopted a new land pricing policy for non-residential lots.

Leaseholders who have standard leases have three months to convert to equity leases and receive a discount of up to 25 per cent.

This phase-in period from Feb. 10 to May 12, will allow the city to fully implement its 1995 Land Administration Bylaw, which requires land to be sold at market value.

Until recently the city estimated the market value of leases by their 1995 assessed value instead of current market value. At a community consultation last August, residents suggested a phase-in period, so the prices wouldn’t jump dramatically overnight.

Leaseholders of commercial, industrial and higher density residential leases will receive a 2.5 per cent discount for each year they have held the lease, up to a maximum of 25 per cent during the phase-in period. A further 2.5 per cent discount will be added on if the lease is paid out all at once. That discount will apply indefinitely.

The change in pricing will allow the city to charge more fairly on leases.

Chrystal Fuller, the city’s director of lands and planning, said the non-residential lots that will see the greatest jump in cost are the ones in the downtown core. At the four corners, one of the most attractive development areas, she said, a lot would be valued at roughly $125,000 under the 1995 assessment. At 2003 market value the same lot would be appraised with a value of closer to $300,000. As one moves away from the city’s centre, the jumps in cost are less significant.