Tuaro ownership shuffle imminent
Presentation at council Monday, says Mayor

by Richard Gleeson
Northern News Services

NNSL (June 20/97) - Five months after falling behind on lease payments, Tuaro Dairy is starting to feel some pressure from the city to pay up.

"We had a briefing at noon hour (Tuesday) on the whole situation, and basically they have until Monday to come up with a plan," said Mayor Dave Lovell.

A week ago, Tuaro's lease arrears stood at more than $50,000.

"They've come up with a bit of a plan. It's not public yet, but it will certainly be presented to council," added Lovell, who said he was referring to Monday's council meeting.

Tuaro supplier Neil Meyers says ownership involvement of city finance director Joe Kronstal, currently chairman of the dairy's board of directors, will be resolved within a week.

Meyers did not elaborate, but said, "There is speculation on how the dairy should continue, both on the ownership of the business and the ownership of the property.

"The main thing is the creditors support Tuaro and having a dairy here and will be patient."

Tuaro is looking for a new partner and new financing, said the mayor.

But Meyers said he has already approached several local businessmen asking if they would like to get involved in the business.

"They weren't interested," he said.

The involvement of Kronstal, said the Edmonton-based farmer, may hurt the business, which will succeed or fail on the loyalty of Yellowknife milk drinkers.

"It (a perceived conflict of interest) could cost us customers, and we can't afford that," said Meyers.

Meyers called a meeting of Tuaro creditors two weeks ago and asked them to organize and ask Tuaro's board of directors to give up control of the company.

No consensus was reached at that meeting.

"It was construed by the other creditors that I want to be an owner and that's just incorrect," said Meyers.

On Saturday Meyers and Tuaro creditors met with the board.

"The board offered me the shares for a dollar, but I said 'no'. The assets of the business are worth something but the shares are not."

Lovell said the city's involvement with Tuaro boils down to a simple decision. "Our choices are either to keep them in business or put them out of business."