Richard Gleeson
Northern News Services

NNSL (Jul 24/98) - One way or the other, the $120,000 Dairy Queen question will soon be answered.

In committee meetings last week and this, councillors indicated the city will be coughing up the cash to bring services to the Range Lake Road lot.

The city development committee on Monday recommended council enter into an easement agreement that would allow the city to bring services to the property, owned by Yellowknife South MLA Seamus Henry and members of his family, and the future home of Dairy Queen and doughnut shop.

Council was also advised by the committee to enter into a development agreement that would allow the city to build water and sewer mains on the easement.

Committee of the whole last week recommended the city accept a $118,777 tender for the work.

Controversy over the issue was sparked two weeks ago, when Coun. David Ramsay drew attention to an informal agreement in which the city would pay for the infrastructure work.

At the time the lot was created, the city made it clear the owner would bear the financial burden of extending the main.

The previous council agreed to offset the cost with a $50,000 grant.

City council has received a legal opinion on whether the informal agreement would stand up in court, but councillors say it provides little guidance.

Ratepayer Robin Beaumont has raised another legal issue, a city bylaw that requires the city to recover costs of installing mains from property owners.

Council is slated to approve or reject the committee recommendations at its 7 p.m. meeting Monday.