YK councillors to alter community plan for private developer

Most Yellowknife councillors support amending the city’s community plan to make it easier for a private developer to build housing.

At Monday night’s council meeting, a majority of councillors voted in favour of updating the boundary of a designated “west residential” area in the Kam Lake neighbourhood to include a lot owned by Milan Mrdjenovich.

The proposal still requires a third vote before it is formally approved.

Councillors who supported the idea said it’s about increasing the housing supply and signalling to developers the city is open for business. Those who opposed the plan pointed out Mrdjenovich has said he does not plan to develop the property for the next decade, among other concerns.

Tom McLennan, who opposed the amendment, said data indicates the city is making progress on increasing market housing supply. He said rather than adding to the city’s workload by approving the amendment, he wants municipal staff to focus on improving processes, completing infill, and addressing the need for public housing and social supports.

“Where we are not taking significant action is to address the critical and growing need for non-market housing,” he said.

“This amendment draws staff in another direction and introduces risk. Given the information before us, I do not believe the trade-off presented in the amendment is in our community’s best interest.”

Mayor proposes change

Mrdjenovich had not submitted a development application to the city, as is usually the case when councillors consider changing bylaws to accommodate development. Instead, the proposal to alter the community plan came from Mayor Rebecca Alty.

City staff had previously cautioned council that while “innovative,” that approach could create “some interesting risks.”

City manager Stephen Van Dine had said that without a development application, council could not guarantee approving the amendment would result in the desired outcome.

On Monday, Rob Warburton said while it was “a little unconventional,” he supported the amendment as he believes it is “a step in the right direction.”

Warburton, who owns a real estate investment company, said council needs to be willing to make changes for housing and economic development priorities to become a reality.

“We cannot pretend that there’s a one-size-fits-all solution to these challenges,” he said. “We need to recognize that building the housing we need and creating the spaces for our economy to flourish often involves tough decisions, trade-offs and willingness to adapt.”

Concerns about fairness

Ben Hendriksen, who voted against the amendment, raised concerns with council not following the usual process for changing the community plan or zoning bylaw and instead approving a workaround for one developer.

“If the issue is the process itself – in terms of that it’s too expensive for community plan or zoning bylaw amendments, or it’s too onerous – then that’s the issue we should actually be dealing with,” he said.

“Otherwise, all we’re doing is solving this for a one-off and we’re not actually solving any problem for future potential amendments.”

Hendriksen added that while he supports the push to build more housing, no immediate action would come from approving the amendment.

Given that Mrdjenovich does not plan to develop the property any time soon, he said it would make more sense for council to address the matter as part of a larger review of the city’s community plan.

Councillors Ryan Fequet and Cat McGurk shared similar concerns.

Increasing land available for housing

Mayor Alty said she considered the amendment to be less about the developer than whether the city wanted the property to be developed for housing.

She said the developer could sell the property or work with a non-profit to build non-market housing, though Mrdjenovich has not indicated plans to do either.

Alty said future development on the land would still be subject to rezoning and public consultation among other processes, which take time.

“Approving this today is just continuing our pipeline of land for housing,” she said.

“There is a demand for land to build on and … this land could be that next housing development.”

Alty encouraged other developers with private land who want to build 200 to 300 homes but can’t because of the city’s community plan to reach out.

Councillors Steve Payne, Garett Cochrane and Stacie Arden-Smith backed the proposal, saying they want to increase housing.

Resident opposes idea

While no members of the public spoke for or against the amendment at Monday’s meeting, at least one resident had previously written to council about the idea.

In an email, which was also shared with Cabin Radio, they voiced concerns with council’s plans to circumvent the normal process and alter the community plan for one developer who hasn’t always followed the rules.

Last year, Mrdjenovich’s company was fined $8,000 after work continued at a Yellowknife site for more than a month without a permit.

“I find it ridiculous that after the disregard of city policy in the past that you are willing to change it for them now with no certainty of what they will do with it going forward,” the email stated.

The motion to alter the community plan passed with Alty, Warburton, Payne, Cochrane, Arden-Smith and Fequet voting in favour and McLennan, Hendriksen and McGurk opposed.

The matter is expected to go to a third and final vote at a council meeting on March 24.

Also on Monday night, councillors unanimously voted to cancel an agreement that reserved a portion of Tin Can Hill for a new university campus, declare April 4 a half-day civic holiday for the Yellowknives Dene First Nation’s spring carnival, and redirect federal funding to replace a failing pumphouse.

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Correction: March 12, 2025 – 8:04 MT. This article previously stated councillor Ryan Fequet voted against the amendment. While Fequet was originally counted as having voted against the amendment, it was then quickly noted he had actually voted for the amendment. The article has been updated accordingly.