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Harper vows to sue capital city for lost development fees

Developer fumes months after Iqaluit council rejected apartment proposal

Kenn Harper criticizes Iqaluit city council for blocking development.

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(PHOTO BY KIRSTEN MURPHY)

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DENISE RIDEOUT

An Iqaluit developer wants to sue the City of Iqaluit for the thousands of dollars his company spent on a development permit and study for an apartment complex rejected by council in June.

Kenn Harper, vice-president of Northern Property Real Estate Investment Trust (formerly Urbco Ltd.), and its construction company Ninety North Ltd., proposed to build an apartment-commercial complex in Iqaluit.

The building, to be named Nunavut Suites, would have housed 48 apartment units and 16,000 square feet of office space. It would have been located on the lot across from the legislative assembly, where a Yamaha shop and a trailer now sit.

But on June 25, Iqaluit city council rejected the project, saying it didn’t like the shape, size and look of Nunavut Suites.

Harper says city council made its decision based on personal tastes, not planning bylaws. As a result, he said, the company should get back the money it spent to design the project and put its proposal together.

The company wants to be reimbursed for the $25,000 it paid for a building permit and another $10,000 it forked out for a snow and shadow study required by the city’s land department.

Harper wrote a letter to city administration requesting reimbursement for the $25,000 permit fee, but the city refused.

"We’ve attempted to quantify the amount of financial damages our company has suffered and consulted with legal counsel to determine the manner in which this financial damage can be redressed in any action or actions in the courts against the municipal corporation and others," Harper told council on Sept. 10.

"I cannot sit idly by while we’re encouraged to develop and follow the bylaw that the council itself refuses to adhere to, incurring expenses in developing plans that meet the bylaw only to be fleeced of our payment and turned down," he said.

"I have to seek redress."

Frivolous reasons?

Ninety North submitted its building permit in March and worked side-by-side with the city’s planning department to fine-tune the project to meet all zoning bylaw requirements, Harper said.

But when the project went before the council’s planning committee, it was met with disapproval. Some committee members were concerned the large, box-shaped building would dwarf nearby buildings and not fit in with the look of the neighbourhood.

Under its zoning bylaw, council can regulate the design, size, architectural appearance and landscape of developments to make sure they don’t detract from the character of the neighbourhood.

After viewing drawings of the proposed building, councillors said Nunavut Suites looks too much like a large wall and its metal exterior reminded them of an industrial building.

When it came time for a vote, council rejected the proposal six to one.

Harper blasted councillors for their frivolous reasons.

"Councillor Kennedy stated publicly that he voted against it because of a lack of a drainage plan, although one was clearly shown on the plans we submitted," he said.

"Councillor Gunn said the building was too big and too ugly. The building was demonstrably not ugly and councillor Gunn was wrong."

Kennedy and Gunn spoke up to defend their comments, saying the building permit didn’t meet bylaw requirements.

Councillor Keith Irving, who heads up the city’s planning committee, was adamant that council had every right to turn down Ninety North’s request.

He said council has guidelines in place that give developers ideas about what kind of buildings they can put up in Iqaluit.

"We want buildings to begin to contribute to this community," Irving said.

"Time and time again, the citizens are asking their council – their political leaders – to do good planning."

He said councils of the past may have let development proceed in a haphazard way, but that this council would make sure to follow residents’ wishes.

He then told Harper to stop complaining. "We’ve got to move forward. This decision has been made. Your building is done," he said.

Hindering growth

Harper told council their rules and regulations are preventing development.

The problem, he said, is that bylaws regarding the size, shape and appearance of buildings are simply too vague.

"If the council determines it doesn’t want pink buildings, it should publish a bulletin telling people not to propose pink buildings. To do less is simply encouraging developers to waste their money proposing projects that in every way conform to the bylaw, but are shot down because of the whims and personal animosities of the council," he said.

Northern Property isn’t resubmitting its proposal. It has already purchased assets in Yellowknife and the Alberta cities of Fort McMurry and Grand Prairie, where, Harper said, "our investment is welcomed by forward-looking, progressive councils."

It’s a real blow to Iqaluit’s economy, Harper said. Nunavut Suites would have provided $85,000 in taxes annually and about $30,000 in water and sewer fees.

"The city, which constantly reminds its citizens of its needs for more and more cash for maintenance and improvements to its infrastructure, could have used that money," he said.

"This is a capital city, one of 13 in Canada, struggling to grow in a sensible manner. Your actions this year have stopped it dead in its tracks from growing in the way it needs to realize its potential.

"Look around you. Where’s the construction? Where’s the housing? Where’s the new office space? Where’s the new retail space? Where’s the excitement? Where’s the spirit of co-operation?" he asked council.

Harper said if the city doesn’t cut the company a cheque for its loses, the matter will likely end up in court.

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