Hay River (July 12/04) - Today could be make-or-break time for a proposed aquatic centre in Hay River.

On Friday, deputy-mayor Dean McMeekin said an arrangement for critical extra funding -- involving K'atlodeeche First Nation -- has been proposed to Municipal and Community Affairs. However, the department doubts it can agree with the deal, even though it initially liked the idea.

MACA has promised a final decision today.

"If they don't come through with the money, it's dead in the water, no pun intended," McMeekin says.

The funding idea centres around $500,000 the GNWT plans to spend in 2008 -- but has not yet allocated -- to build an outdoor pool on the Hay River Reserve.

Chief Roy Fabian said the KFN proposed borrowing $500,000 for the Hay River project, on the condition the GNWT would cover the interest and eventually pay off the loan with the money it plans to spend on the reserve pool.

"For us, we'd like to work something out to support the town getting its pool," Fabian said. "We can have access to the pool all year round."

MACA Minister Michael McLeod said on Friday that such a financial arrangement has never been done before and would not be looked upon favourably by the auditor general of Canada.

"It would preempt the legislative assembly's mandate to review and approve appropriations annually," he explained.

Still, the minister did not completely rule out the idea.

"It's going to be very difficult, unless we find some angle we haven't identified or make an exemption to the policy," said McLeod.

MACA staff were also looking for other options to help the project proceed.

McMeekin says, without the $500,000, they would be about $1.5 million short of the needed funds.

"That's just too much of a gap to overcome at this time," said McMeekin. He said they intended to make up the rest of the shortfall through extra community fundraising and an allocation from the town's surplus.

Low bidder

The lowest tender for the project was $6,249,572, plus GST, from Rowe's Construction. Council initially figured the project at about $5 million. The pool will be one of the issues discussed at a special council meeting.