NNSL (Mar 25/98) - Want to buy a used liquor warehouse? The city of Yellowknife did, but the territorial government said absolutely not.

According to Mayor David Lovell, the city's proposal was to buy the Byrne Road lot and the building, sell them and use the money to develop another piece of land that would be more suitable for the arena.

"We were turned flat down," Lovell said.

He added that the territorial government has been adamant that the lot will be provided after the building has been removed.

It turns out the building isn't of much use to the city, because it can't be converted into an arena and its design isn't suitable for an addition.

The 3,000-square metre (33,0000-square foot) structure has an approximate market value of $2.3 million, with the land included, according to Vince Dickson, regional superintendent with the NWT Department of Public Works. Dickson said he wasn't aware of the city's offer to buy, but would look into it.

The fact that the building is being moved is indicative that the site is earmarked for the new arena -- conditional upon the passing of the debenture, said Lovell.

"The government gave us that property but there's no room to negotiate... 'You'll get it only on the condition that you build an arena on it. Period,'" Lovell was told, adding that the city has requested that the warehouse sale only take place if the public agrees to the arena project. If not, the lot and warehouse would be far more valuable as a package, Lovell suggested.

An advertisement that appeared in Monday's News/North reads, "The Department of Public Works and Services is inviting offers for the purchase and removal of the GNWT Central Warehouse building... and is subject to the terms of the terms and conditions as outlined in the Offer to Purchase Documents."

These documents are available through the DPW regional office on 44th Street.

Lovell noted that the ads are appearing now to hasten the process that begins if the public approves next month's $2,790,000 debenture plebiscite, which will ensure the city gets the lot by June.