Richard Gleeson
Northern News Services

Yellowknife (Nov 30/01) - The federal government is hoping to get approval to build itself a home the size of the Bellanca building.

A department of public works and government services Canada official said the federal government is attempting to negotiate the final details of a deal for the downtown Canadian Tire building.

The federal government is trying to purchase the downtown Canadian Tire property. It hopes to build office space for 200 federal employees. - Richard Gleeson/NNSL photo

If an agreement is reached on the Franklin Avenue property, and if everything goes according to the department's plan, a 5,000 square metre building would be sitting on that site, ready for occupancy by the fall of 2004.

"Looking at the growth that is going to take place, we would need to house those employees," said public works spokesperson Judy Kohut. "We believe a multi-tenant facility is going to address those concerns."

She emphasized the plan is just a proposal at this time.

The Canadian Tire building has stood empty since a new Canadian Tire opened in the Frame Lake South area last fall.

Kohut said, if it is built, the structure will accommodate 200 office workers.

A Department of Indian Affairs and Northern Development official said there is no plan to transfer positions from Hull or Ottawa to Yellowknife.

Almost all federal offices in the city use space leased from private developers.

Bellanca Developments, owner of four downtown office buildings, provides most of that office space.

Bellanca manager Kelly Hayden said the plan will does not pose a threat to his company.

"The Yellowknife market is growing and there's a need that has to be filled," said Hayden. "We see the federal government putting a lowrise building up to house multiple government departments being a positive move for the city."

Hayden said Bellanca's space is "100 per cent leased" at this time. He said the company "had a look" at the Canadian Tire property, but decided not to purchase it. Typically, private developers line up long-term tenants prior to building to secure financing for construction.

A real estate agent involved in the negotiation said details of the deal will be available next week. Canadian Tire Corporation is still the registered owner of the corner lot.

Kohut said if the government purchases the property, demolition of the Canadian Tire building would begin in the spring. No design work has been undertaken, she said.