Norman Wells (Nov 27/06) - Norman Wells developer Jim Ulch said a government decision to negotiate an office lease agreement with a land claims group ignored government guidelines and will end up costing taxpayers too much money.

Norman Wells businessman Jim Ulch says he is outraged the department of public works has decided to enter direct negotiations with the Norman Wells Claimant Corp. on a lease worth more than $3.6 million for a 750-square-metre office complex. - photo courtesy of Jim Ulch

For some months, the territorial government has been talking with the Norman Wells Claimant Corp., a development wing of the Norman Wells Land Corp., on a deal that would see government lease a 750-square-metre office complex being built by the corporation.

"I have things at risk here," said Ulch. "I feel like a sacrificial lamb."

A resident of Norman Wells since 1982, he said he was never offered a chance to bid the deal. In September, News/North reported the community faces an acute need for office space.

Rather than putting the required lease out for public tender, the government opted for a negotiated contract with the Claimant Corp.

"Everything is in line with the land claim," said Ethel Blondin-Andrew, corporation director.

"In Martha Stewart's words, 'It's a good thing.'"

Ulch questioned why GNWT's "guidelines for submissions recommending negotiated contracts" weren't followed.

Those guidelines include getting support of town council before beginning negotiations, something Ann Marie Tout, mayor when the talks began, said never happened.

"We had a request for (our support), but never granted it," she said.

Ulch also said the $365,500 annual lease ignores yet another of the guidelines.

When inking a negotiated contract, the policy states, "Goods or services provided through the proposed negotiated contract will be provided at a reasonable cost."

The deal with the Claimant Corp. would work out to $40.61 per square metre per month.

That's more than 35 per cent higher than $29.97 per square metre lease the Sahtu Health and Social Services Authority currently pays for its 400-square-metre office space in Ulch's Heritage Hotel building in the same community.

He won that contract through a public tender that closed on Dec. 11, 2003.

When asked about the government's choice to proceed through a negotiated contract, public works and services deputy minister Mike Aumond said all the guidelines had been followed, but other officials later admitted they hadn't.

"They are only guidelines," said Richard Bargery, principal secretary to NWT Premier Joe Handley, who was unavailable for comment last week.

This was echoed by Floyd Roland, deputy premier and finance minister, who also held the public works and services portfolio when negotiations actually sometime prior to the summer.

He confirmed there was no support from town council, but said that didn't matter.

"Ultimately, cabinet has the discretion of all decision making...," he said.

In this case, not having town council's approval was weighed against the urgent need for office space and wasn't enough to scuttle the deal, said Roland.

"If they're not going to follow their own guidelines, why even write them?" Ulch said, adding that the guidelines suggest government keep negotiations like this hidden from the public.

Under the heading of "Public Relations" the policy instructs, "No public announcement is recommended."

"No public announcement is recommended? Hell it's our money," he said.

Roland said the public isn't informed when negotiated contracts come together due to time constraints.

"Sometimes it would take a number of months before an actual decision is made," he said.

Roland's comments left Range Lake MLA Sandy Lee puzzled.

"The accountability factor is important and there should be more than one body looking at that," she said. "There has to be a safety valve.

"I think there's an extra burden where there's a negotiated contract or lack of a tendering process."