HAY RIVER - A controversial proposal to relocate the liquor store in Hay River has hit a dead end, at least for now.

On July 2, Hay River Liquor Retailers (1991) Ltd. withdrew its application to the Town of Hay River for a permit to move its store from downtown to a warehouse it operates in the industrial area, across the highway and railway tracks.

A controversial proposed move of the Hay River Liquor Store to a new location was withdrawn. - Paul Bickford/NNSL photo

A number of individuals and businesses vehemently fought the move by the town's development officer and later by the Development Appeal Board (DAB).

Among their concerns were safety and preserving the vitality of the business sector in the downtown core.

The issue made its way to the NWT Supreme Court.

"We withdrew our application to ease the tension between the appellants and the DAB," said liquor store owner Greg Rowe.

Rowe said the issue has been going on for two years.

"We were caught in the middle," he said. "There was no certainty where it was going to go."

The issue was tying up the town in expensive litigation, he added.

The withdrawal of the application prompted the NWT Liquor Commission to withdraw its offer of a new contract to Rowe's company and to cancel its request for proposals.

"It was an inevitable result," said Edmonton-based lawyer Steven Cooper, who represents the group of companies opposed to the store's relocation. "My clients were not going to quit until this proposal was quashed."

Cooper said the process was flawed from the start.

The lawyer said his clients are pleased with the latest development, but remain frustrated they had to spend money to fix an issue that two levels of government made a mess off.

Rowe said the permit application was based on a liquor commission operating model, which is used in other communities, of a combined store and warehouse.

However, he said warehouses are not a discretionary use under downtown zoning.

Rowe said his first option was to leave the liquor store and warehouse where they are, but the liquor commission wanted a combined operation.

Kyle Reid, general manager of the NWT Liquor Commission, said he wasn't disappointed when the application was withdrawn.

"We need to find a solution to this problem," he said.

The commission will consider its options, he said, adding it would only be speculating to say what those options might be.

Cooper said he has no way of knowing what the liquor commission will do now.

"I can assure you that my clients and my office will be watching very closely how the development process rolls out this time," he said, adding he expects government will be more cautious in how it proceeds.

Reid said the call for proposals was for a single outlet with enough storage space for the store.

Previously, the warehouse in Hay River's industrial area was a regional operation servicing Hay River, Fort Smith and Fort Simpson.

The relocation issue goes back to December of 2006 when Hay River's development officer approved the application for the move.

A local resident took the matter to the Development Appeal Board, which denied the appeal in January of last year.

The companies represented by Cooper appealed that decision to the Supreme Court of the NWT.

In January of this year, Justice Virginia Schuler ordered a new DAB hearing, saying it had not adequately addressed two points - safety issues and the direction in the town's general plan that the downtown core be the major focus of retail business.

On March 26, the issue was heard by the Development Appeal Board for a second time.

However, the matter was adjourned and the board has not reconvened the hearing since.

At the hearing, Cooper said the industrial area doesn't have sidewalks, pedestrian crosswalks or sufficient street lighting, and argued an urban planner should have been consulted before the move was approved.