Deal rushed past council
Residents say dairy price $250,000 lower than what was agreed to two years ago

The Tuaro deal
Dairy pays $250,000 for 2.4 of 5.3 hectares currently being leased from the city
City to reduce dairy's property taxes
Tuaro permitted to have two mobile homes on land
City agrees to co-operate with Tuaro to establish manure disposal site
Tuaro pays first $1,000 of survey and subdivision costs, city pays remainder
Side deal:
Tuaro "pays" $50,000 for old curling rink
$20,000 to be paid on closing of deal
Tuaro to pay $30,000 balance as service (i.e., removal of rink from site)
Tuaro lease arrears to be reduced by $50,000

by Richard Gleeson
Northern News Services

NNSL (July 2/97) - Ratepayers were given no time to review a proposed sale of city land to Tuaro Dairy before council approved first reading of a bylaw to authorize the deal.

"I have a lot of concerns (about the proposed agreement), but I haven't had time to address or review the document," said Lisa Dyer, who lives next door to the dairy.

Dyer was one of five people who appeared at a hastily called special meeting, held at noon Friday, to address the revised deal.

The sale was first proposed at last Monday's council meeting. Discussion was put off because of a snag in a side deal for the old curling rink building.

At the conclusion of the meeting, Mayor Dave Lovell said the matter would come up again at council's July 14 meeting.

All but one of those who appeared Friday have reservations with the planned land deal and council's handling of it.

Neil Meyers, the Tuaro farmer who proposed the sale, noted the purchase price is far less than the buyout price specified in a purchase agreement Tuaro signed with the city in 1995.

"To make a long story short, it is being sold for about $250,000 less than what it should be sold for, according to the agreement," added Dan Prima, another neighbour of Tuaro.

He said he has concerns the dairy may be encroaching on his property.

Prima and Dyer said the city has provided no assurances Tuaro will be operating to dairy industry standards.

Aldermen did not share those concerns. First reading of the bylaw passed unanimously on votes from Vi Beck, Ruth Spence, Merlyn Williams and Blake Lyons.

Tuaro Dairy's biggest trump card in its dealings with the city continues to be its failure to live up to past agreements.

According to a financial summary prepared by the city, Tuaro currently owes Yellowknife $200,213 on its lease. Just over $50,000 of that was accumulated in the last seven months.

"I don't think it's in the city's best interests to bankrupt this company," said Vi Beck in support of the proposed deal. "I think Mr. Lagore and the dairy have come up with a very good deal for Yellowknife."

Beck echoed sentiments expressed by then alderman John Dalton in October 1995, when he promoted the deal that Tuaro is now failing to honor.

Dalton said the city would collect little of the almost $300,000 Tuaro then owed if it foreclosed. "The deal has the potential to be viable from everything I've seen," said Dalton at the time.

On Friday, Meyers said the accelerated lease payments Tuaro agreed to made it impossible for the dairy to turn a profit.

He also pointed to the debt Tuaro owes, saying the dairy will provide "$800,000, probably a million, we'll see returned to people in the community who would otherwise lose it."

Dyer asked to respond to remarks Meyers made in the last of the four presentations. Mayor Dave Lovell agreed, but Spence, noting unanimous consent of council was required, voted against hearing Dyer.

When asked why she chose not to listen to Dyer, Spence replied, "because there was no need."