Richard Gleeson
Northern News Services

NNSL (May 06/98) - The Yellowknife Gymnastics Club got some good news this week that paves the way to a permanent home for the club.

The city's community services committee voted Monday to recommend council provide the club with $140,000 for the new facility and write a letter of support the club can take to the bank.

Club representative Elaine Keenan Bengts said assurance and commitment from the city was essential to arranging the financing.

"The budgeting is very tight -- income meets expenses, but doesn't go much further," said Keenan Bengts.

The bank is concerned about the narrow margin, in spite of the fact that the club has $240,000, including $140,000 from the city, in cash to invest in the project.

The club estimates the 967-square-metre facility will cost $680,000. The city has agreed to lease land for the building between Wade Hamer Mini Golf and Ruth Inch Memorial Pool.

Keenan Bengts said the bank is looking for assurances from the gym club that it will be paid, in the event of a default, without having to foreclose on the property.

"One of the things that will help us do that is, if for some reason we do default on our mortgage -- and we're fully confident we will meet our expenses -- there will be somebody in the background to step into the fray," said Keenan Bengts.

Ed Bennington, a member of the club's facility committee, said the club is not asking the city to guarantee the mortgage.

"The city would have the first option to redeem (in the event the club could not pay the mortgage)," said Bennington. "That doesn't mean they would be obligated to do so."

Keenan Bengts added the club hopes to secure financing for the building this week.

If all goes according to plan, the building will be completed by fall.

The letter of support, and $140,000 city contribution, still requires council approval.