Developer takes issue with waterfront bid process

Yukon first nations aren't alone in taking issue with the bid process for the sale of two waterfront properties owned by the territorial government.

Yukon first nations aren’t alone in taking issue with the bid process for the sale of two waterfront properties owned by the territorial government.

Northern Vision Development president Piers McDonald said today both the three-week tender period and the one-year time frame for the proponent to get development permits in place for the two properties are too short for prospective owners to plan and develop the site properly.

“It makes it very difficult to bid on the property,“ he said in an interview.

Northern Vision had been interested in the property up for sale, one being 0.18 hectares between First and Second Avenues and the other 0.89 ha property on First Avenue next to Ogilvie Street and across from the Shipyards Park parking lot. McDonald said the tight timelines made the company opt not to bid on the sites.

The government is refusing to state how many bids, if any, it has received for the land sale.

While bids for the two sites closed Wednesday, Yukon Supreme Court Justice Ron Veale ordered the bids to remain sealed after the Ta’an Kwach’an Council filed an injunction on the matter.

Arguments in the case have been adjourned until next Wednesday. However, both the Ta’an and Kwanlin Dun First Nation say Premier Dennis Fentie committed verbally and through two letters to discuss purchase options for the two sites with the first nations.

While McDonald wouldn’t comment on the situation with the first nations, he argued there was no warning the land would become available until the tender was released three weeks ago. That leaves developers with little time to come up with financing for the 20 per cent deposit or to come up with a general plan for the site.

Though the city also put out a threeweek tender for its first sites in the area to be released, McDonald noted it was preceded by about a year of talk around releasing the lots at this time. That gave prospective developers time to prepare for the bid process, he said.

Bids for the first city sites are to be opened at 4 p.m. today.

McDonald noted Northern Vision wasn’t interested in the city sites that are up for sale.

The tender documents note a three-year period for developments to be up on the site that was the former Motorways trucking yard before the territory could cancel the sale.

City documents point to a one-year period for development permits and other paper work to be in place for the developments on the overall property.

With all sites zoned as conditional uses, potential developers would have to take their plans to council for approval first.

A 60-day tendering period and two-year period to get development requirements in place would be a more realistic timeline for local developers to get their financing and plans in place for the bid process and eventual development, McDonald said.

As next Wednesday’s court date approaches, the Yukon government is awaiting further court orders before deciding how to proceed with the 20 per cent deposit prospective developers paid on the $561,000- and $2.1-million properties.

Fentie spoke to the Star this afternoon from Quebec City, where he has been attending a national premiers’ conference.

“I can’t comment on (the file for injunction on the land sales); it’s now in the hands of the court, and that’s going to be up to the courts to make their decision and we’ll await that outcome ... what I will say is that this government will continue to act in the public interest and will continue to make decisions when it comes to Crown assets,“ the premier said.

On suggestions from Ta’an Kwachan and Kwanlin Dun that Fentie’s dealings with first nations governments has been less than satisfactory, Fentie said:

“We’re going to let the courts decide that but I can say factually that discussions took place and pre-notification was provided to first nations governments.“