NNSL (DEC 20/96) - In one of it's last moves of 1996, Yellowknife city council finalized the decision to purchase the library space in Centre Square Mall.

At a special noon meeting Wednesday, council gave third reading to the bylaw authorizing the $3,556,000 purchase.

Aldermen Jo MacQuarrie and Dick Peplow cast the only dissenting votes. Alderman Ruth Spence was absent.

The move was made to minimize losses the city suffered when it agreed to a financial restructuring of the development.

The restructuring was prompted by financial difficulties and an allegedly defective registering of the city's claim on the library space.

The city is currently suing the law firm it contracted to register the claim.

Under the orginal agreement, the city had the option of purchasing the library space in May of 1995 for $2.1 million.

With the new purchase price, and additional lease payments made, the city lost more than $2.1 million under the new agreement.

That amount was mitigated by the acquisition of the mall parkade, which is expected to net $19,800 in 1996.