Dane Gibson
Northern News Services

NNSL (Apr 21/99) - After a rocky start, Dairy Queen will be serving up the swirl this summer.

"I wouldn't say I was overjoyed about how this situation was handled. I thought we were supposed to be attracting business, not deterring it," said Yellowknife South MLA and Dairy Queen part-owner Seamus Henry.

"Right now, I'm just going ahead with the project and taking it one day at a time."

Henry said the restaurant will employ 50 people.

Yellowknife Mayor Dave Lovell confirmed Monday that owners of the new, $2-million Dairy Queen will receive a $50,000 grant to hook up sewer and water.

The Range Lake Road fast-food restaurant is currently under construction.

The former city council agreed to pay the grant because when the lot was purchased, it had access to sewers. That was before the city subdivided the south end of the property, which cut services to the existing lot.

Lovell said because the city's administration was going through changes, the originally approved $50,000 spiralled to $130,000. City administrators at the time thought the total cost of sewer and water was to be paid by the city. Lovell called it "a big oversight."

"What happened was that at the city level, it got away from us and (Henry) was the only one that really knew what was going on. When I looked at the big picture, I was the responsible person," Lovell said.

Lovell said three years ago, when the issue came up, he originally disagreed with giving Henry a grant.

"I originally said no but Mr. Henry lobbied the council of the day and they approved the grant for sewer and water," Lovell said.

City councillor Ben McDonald said the current council agreed to honour the promise for grant money made by the former council.

"The city passed a motion and Mr. Henry went ahead with the project with the understanding that he would receive that money," McDonald said.

"I think I might go so far to say the situation was unique and what the thinking was back then, I don't know. If a developer comes to us and wants to subdivide a lot in the future, I think the cost of the project should go to them and not the taxpayers."