Tuaro deal stalled
Last-minute closed-door meeting fails to solve snag

by Richard Gleeson
Northern News Services

NNSL (June 25/97) - Discussion of a proposed deal between the city and Tuaro Dairy stalled before one word about it was uttered at Monday's meeting of council.

Just before the discussion began senior administrator Doug Lagore asked for and received a break "to clarify something with Mr. (Joe) Kronstal and Mr. (Neil) Meyers."

Kronstal is now a major shareholder with the dairy. If the deal is completed, Meyers will become the majority owner.

The deal involves a $250,000 offer by Tuaro to buy slightly less than half of the five-hectare property it is currently leasing from the city. The snag is the fate of the curling rink next to Gerry Murphy Arena, which Tuaro wants to salvage for an expansion of its facilities.

In a proposal outlining the deal, Meyers -- the dairy farmer currently supplying milk to Tuaro -- suggests the more than $50,000 the dairy owes in lease arrears to the city should be cancelled in return for Tuaro removing the curling rink.

"That issue is still on the table," said Meyers the day after the meeting.

But an agreement drawn up by the city would have Tuaro buy the curling rink for $50,000. In return the company's debt would reduced by the same amount.

The city has plans to tear down the curling rink and the Gerry Murphy Arena when a new arena is up and running. Mayor Dave Lovell estimated it would cost $10,000 to demolish and remove the curling rink.

The Tuaro offer was made conditional on the dairy receiving an agricultural assessment for property taxes, approval of two residences on site and provision of a site to dispose of manure.

The agreement will be on the agenda for the next meeting of council, slated for July 14.