The Inuvialuit Regional Corporation plans to build a new hotel in downtown Inuvik and convert its existing Mackenzie Hotel into apartments.
The IRC acquired the Mackenzie Hotel in late 2022.
Presenting its plans to Inuvik town council, the IRC said it would open a new hotel on the former Eskimo Inn site. The old inn building was pulled down in 2020.
In its presentation, the IRC said the plans – which are “subject to final investment decisions” – also include a three-storey office block next to its existing offices and a 24-unit apartment building.
The IRC wants to begin work on the new hotel’s foundations this winter and is targeting having the building open by the end of 2025. The Mackenzie Hotel’s restaurant would remain in place, with apartments above it, and refurbishment work on that building is tentatively earmarked for early 2026.
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The office building would include a cultural centre, café and retail space.
“Basically, IRC is running out of space and it’s limiting our ability to hire more staff to run more programs,” a representative told town councillors at a Monday evening meeting.
The apartment building, planned for the empty lot next to Frosty’s, would contain 17 two-bed and seven one-bed units.
The IRC brought the plans to the town council as it is looking to avoid paying what it says would be development permit fees of $200,000 per building under the town’s existing rules.
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In a briefing note prepared for council, the IRC argues that fee is about 25 times as expensive as the permits would be in Yellowknife, and six times pricier than Iqaluit.
The IRC is seeking an 85-percent reduction in those fees, which it says would bring them into line with many other jurisdictions. The IRC adds that it estimates property taxes from the buildings would earn the town some $270,000 a year once built and occupied.
In a briefing note of its own, the town recommended accepting the IRC’s proposal.
“Administration recognizes that the current fee structure requires revision,” that briefing document stated.
“We are working with the development officer to determine a more relevant and updated formula based on a peer review and best practices.”
At Monday evening’s meeting, senior administrator Cynthia Pihlaja said the work required to more broadly revise the fee structure is “going to take a little bit more work than a week.”
“That’s why we thought that our best option would be to ask for a deduction,” she said.
Council is expected to announce a decision in the near future.
