Speedy library deal knocked
Council trying to go around ratepayers, alderman says

by P.J. Harston
Northern News Services

NNSL (DEC 13/96) - City council is ignoring democratic principles by seeking GNWT permission to borrow more than $3 million to buy the public library without ratepayer approval, an alderman says.

"I'm really opposed to us going through the back door and going to the government looking for an exemption from ratepayer approval," said Alderman Dick Peplow. "It's not democratic."

At a special council meeting Tuesday night, city administrator Doug Lagore recommended council seek the order so negotiations on buying the library -- worth as much as $3.7 million according to city sources -- can begin.

Council voted to accept the recommendation.

The library, leased by the city for $38,000 a month, is being remortgaged by its owners and the city has an opportunity to negotiate a buy-out price on the Centre Square Mall facility.

Lagore said that once the property is remortgaged, it could become even more expensive to buy.

He said the city must act within the next week -- too soon to take to the voters in a plebiscite -- to get the lower price.

The city's lease agreement on the facility ends in 2010 when it can purchase the library from owners Clark Bowler for $1.

Alderman Merlyn Williams (left) disagreed with Peplow's take on the situation.

"We're looking for the most efficient, cost-saving deal we can get for the taxpayers," said Williams. "When they (the public) are informed of the long-term savings, they, too, will be in favor of a deal," he said.

Lagore told council an early buy-out of the lease, which would require the city to borrow money, could save the city as much as $50,000 in interest payments between now and 2010.

He also said that any negotiations, which could begin as early as this week, would have to come back to council for final approval.

A vote couldn't be arranged until February at the earliest, Lagore said.

Alderman Ruth Spence supported seeking the government order now and revisiting the issue once negotiations have begun.

"If we find there's been such a public hue and cry over this, then we can go to the ratepayer," she said. "We're not bound by the recommendation, we're just seeing if it's possible."

Alderman Dalton agreed, and added that when the issue comes back to council he will be looking for more details on the effect such a buy-out would have on the city's finances.

And while Alderman Jo MacQuarrie wouldn't support the recommendation, saying the entire history of the library and parkade buildings has been bad news for the city, Mayor Dave Lovell said the situation had to be dealt with.

"This council inherited a very bad situation. There's no wonderful way out of this, we just keep cutting our losses in every direction we can go," he said