Yellowknife (Apr 25/03) - The Yellowknife Gymnastics Club is looking for a financial lifeline after the late opening of the Multiplex caused it to miss almost a full year's income.

Elaine Keenan-Bengts says coming to council for support was a last resort

Gymnastics director Elaine Keenan-Bengts asked the city for a repayable grant of $110,000 on Monday, calling it a "last resort" to rescue the club.

The municipal services committee agreed to ask administration to look into the city's budget to try to find some money to give the club.

Keenan-Bengts told council that she was reluctant to come to them looking for money, but she was left with no choice.

"The first thing I want to say is that I hate being here for this," she said.

The club lost over $100,000 when the delay in the facility's construction forced it to forfeit its income for 10 months. Meanwhile it had to keep paying its employees rather than risk losing them. Keenan-Bengts said the project was also more expensive than they had planned.

"We spent more building the building than we have to spend," she said

The plea comes on the heels of a very successful raffle where the club raised $30,000 and record registration for the spring session

"Registration is the highest it has ever been and we're confident the club would be back on financial track by this time next year," said Keenan-Bengts.

"We just need to get over this hump."

Council speaks

Some councillors worried that giving the club a grant would set a precedent, and other groups would come wanting money as well but Coun. Alan Woytiuk said that he was prepared to move forward with the grant.

"This is a precedent I'd dearly like to set," he said. "This is a user group that came up with almost 80 per cent of the cost of their facility.

"I'd love to see other user groups follow that. "I have no problem supporting this club. They're bringing recreation to the community at very little cost to the taxpayer."

Coun. Blake Lyons said he would be comfortable supporting a grant so long as it was clear council's decision to give the money was based on the fact that the gymnastics group fundraised over $1 million for the project on its own.

"We have to be clear that the only reason we're considering this is the personal sacrifice and commitment the club has made," said Lyons. "Everybody else has to get over that same threshold before they say 'give us what you gave them.'"

Future of the club

Coun. Kevin O'Reilly wondered, at Monday's meeting, whether the city would have to raise taxes to provide the grant.

Keenan-Bengts, who put up her own home as collateral against the club's debts, said the club is desperate but she wouldn't support a tax increase to help the city pay it.

"I would be appalled if they considered a tax increase for this," she said. "That thought makes me sick to my stomach."

It is illegal for the city to provide a loan but it is possible to provide a repayable grant.

City administrator Max Hall said there may be a "creative way" to provide the gymnastics club with a grant and said the matter would be back before council before the end of May.

"There are ways of doing this," he said. "We'll have to have another look at the budget."