Nathan VanderKlippe
Northern News Services

Yellowknife (Mar 27/02) - Although work has already begun on the new arena, the city still has no contract with the club that promised to cover a substantial portion of construction costs.

The Yellowknife Gymnastics Club made verbal agreements with the city last September to build a training facility as part of the twin-pad arena building. But the volunteer association has not yet managed to find the money to carry through with the deal.

Mayor Gord Van Tighem says he isn't worried, but if that money does not come through, the city could be left with a larger bill for the arena than expected. The matter was the subject of at least two recent closed-door discussions by the city's priorities, policies and budget committee.

"We've raised a half million dollars. That leaves us about $400,000 short and we're working on financing for the balance," said club president Elaine Keenan Bengts. "It's not a problem of coming up with the money. The problem is getting the contract worded such that lenders have security for their loan to us."

The club and the Department of National Defence are partners in the new $10-million complex. DND has committed about $1 million for construction of a gymnasium.

The gymnastics club, which has more than 400 members, has raised $500,000 over the past decade.

The club's contribution includes $700,000, toward the arena "shell" -- the plumbing, electricity and other services held in common by arena users. The rest goes to pay for construction of the 8,500-square-foot gymnastics area.

A city staffer who asked not to be named said the club has secured most of the funding for the shell.

"The city's not going to have to pick up the slack," said Keenan Bengts.

"The gymnastics club will meet its obligations to pay for the portion of the cost," she said adding that she hopes the club facility will be open by late September.

The gymnastics club currently meets in the old Currie Construction garage just off Old Airport Road. The club has leased the building from the city for the past three years.

However, the city has sold that building, forcing the club to leave. Keenan Bengts said the club has not yet chosen a temporary location.

As for the contract with the city, Keenan Bengts said, "it will be signed very shortly."