Richard Gleeson
Northern News Services

NNSL (Jul 22/98) - A legal opinion the city commissioned on an informal agreement to provide services to the future Dairy Queen is not much help, say city councillors.

"I don't feel confident I know from this opinion what the legal opinion is," said Coun. Ben McDonald.

Members of council received the written opinion late last week.

The city requested the opinion to find out if it is legally bound by a memorandum of understanding between the city and Yellowknife South MLA Seamus Henry.

Henry's property was severed off another lot which the city water mains did reach. When the lot was split, the developer agreed to take full responsibility for extending services to the property.

The MOE says the city will foot the entire bill for extending the mains to the front of a Range Lake Road lot, which is now owned by Henry and members of his family.

The MOE was signed by a city staffer, without authorization from council.

"It's quite ambiguous," said Coun. Peggy Near of the opinion. "The first time I read it I thought it was saying the MOE wasn't legally binding, and the second time I read it I thought it was saying it was legally binding."

Near, who characterized the opinion as "fence-sitting," said she's going to ask the city lawyer for clarification.

"It's pretty hedged," said Coun. Robert Slaven. "I plan to make a presentation on deciding what council should do about this as if it (the MOE) didn't happen."

He added, "This specific case is important, but the principles involved are more important."

Those principles arose Monday, when Coun. David Ramsay asked city staff if Yellowknife should pay to bring services to a lot across the street from the planned fast-food outlet.

Mayor Dave Lovell said that was a question to be answered by council.

Lovell said the same of the Dairy Queen servicing deal. "Whether or not we put in the mains is a council decision," said the mayor. "The MOE, while it complicates things, it doesn't make it a deal."

In a presentation to council last week, Henry said he hopes the city would live up to the agreement represented by the MOE.