Yellowknife (May 05/06) - Just three days after the city threatened to sue Con Mine owners over unpaid property taxes, Miramar quietly paid its bill yesterday.

Mayor Gord Van Tighem said the entire amount owing through 2005 and 2006 - $581,074 in property taxes and late-payment penalties, plus $242,144 in levies to Yellowknife's two school districts - has been paid in full.

"I always thought they were good people," said Van Tighem.

"Excellent news. Life goes on."

A memorandum handed to city councillors, Monday, warned that they may have to increase taxes this year by 1.47 per cent if Miramar didn't pay $333,731 by the end of the month to cover a hole left in the city's budget due to the company's non-payment.

That's what the mining company owed for last year after only a partially successful attempt to appeal its property assessment.

In 2005, Miramar took its assessment to the Appeal Tribunal of the Northwest Territories, arguing that its 2004 assessment - at $24.8 million - was too much.

The company managed to get the amount reduced to $17.4 million for 2005, but not enough to avoid a substantial tax bill.

Councillors were told the city may have to sue to get the money back, or even auction off the property. Con Mine closed in 2003 after 65 years in operation. Miramar is now in the midst of cleaning up the site.

Van Tighem said he hopes the city can turn over a new leaf with Miramar.

"Hopefully, this is a sign we'll be working more closely together," said Van Tighem.

"We've got access to brownfield money. We can be partners on some things (like mine site clean-up)."

City Hall recently asked the Mackenzie Valley Environmental Impact Review Board for an environmental review of Con Mine.

The city is unhappy with a territorial government decision to allow the mine site to be cleaned up to "industrial" standards only.

It wants some areas cleaned up to a higher standard so houses can be built there in the future.

Miramar declined to comment.