As stated by the Minister and in recent media reports, the biggest impediment to developers is the lack of affordable, serviced lots to build on. A developer, because they have to pay such a high price for a lot, may be unable to make a realistic profit when they sell their product to the eventual homeowner. This of course discourages the developers from even undertaking projects.

The committee was pleased to hear of ongoing discussions between the City of Yellowknife, the NWT Housing Corporation and private developers on ways to reduce the costs of lots in Yellowknife. It is hoped that some agreement could be reached between the parties that would result in the construction of needed private and rental accommodations.

The Standing Committee on Social Programs would appreciate being kept apprised of the status and success of ongoing negotiations between the developers, the NWTHC and the City of Yellowknife.