Richard Gleeson
Northern News Services

Yellowknife (Nov 26/99) - Council appears poised to approve a new deal for taxes on the Giant Mine property.

Proposed tax deal - Miramar agrees to pay Giant mine taxes starting in 2000. - City agrees 2000 taxes will be no more than $699,000. - Miramar will sell its interest in some leased Giant lands, including the townsite, to the city for $410,000, to be paid in two instalments -- $233,000 in 2000 and $177,000 in 2001. The city will trade in the existing lease to the territorial government for a new one with a 30-year term and an option to renew for another 30 years. - The purchase price paid to Miramar for Giant lands would increase by the amount Miramar's Giant taxes for 2001 exceed $531,000, if they do exceed that amount. - The GNWT and DIAND agree the city will assume no environmental liability for existing state of the Giant lands taken over by the city. - The land purchased by the city will be included in the surface cleanup being conducted by DIAND and the GNWT.

"I think it's a pretty darn good agreement," said Mayor Dave Lovell, who negotiated the deal together with Coun. Blake Lyons and members of city staff.

Coun. Bob Brooks agreed, saying, "This deal is going to end up being a win-win situation for everybody. Not only does the city end up getting its taxes, but we get something we've been looking for for a long time, and we get the 50-60 jobs and Miramar's operation is going to be strengthened."

Under the deal, the city would receive a maximum of $699,000 in taxes for 2000 and up to $531,000 in 2001. The city estimates that is what taxes for Giant will amount to those years.

At an Oct. 5 meeting, Miramar proposed paying no taxes on Giant for two years and thereafter linking taxes to the price of gold. Last week, Finance Minister Stephen Kakfwi said the territorial and federal governments were willing to pay about $700,000 to help make the deal for Giant happen.

The amount Miramar has proposed to pay for the mine has not been revealed.

A critical new part of the proposed deal is the GNWT and a 29.35 hectare (73.38 acres) portion of the Giant lease the city would pay Miramar $410,000 to take over.

The land includes approximately 1.5 kilometres of Yellowknife Bay waterfront.

The territorial government has agreed to renew the lease for a 30-year term with an option to renew for another 30 years.

Lovell said the lease would relieve the pressure the city is facing to provide more waterfront access for boaters.

"Getting that land for a marina, it just takes the pressure off us completely, and it's already developed," the mayor said. The depth of water there makes it far more ideal for a marina than waterfront in Old Town, said Lovell.

"If this was clean, pristine land, the value would be in the millions," said Lovell.

Asked if Akaitcho Treaty 8 was consulted before the lease was proposed, Department of Indian Affairs and Northern Development spokesperson Dave Nutter said they had not.

Treaty 8 is negotiating a land claim in the area. Representatives were scheduled to meet with federal government officials yesterday in Ottawa to work out difficulties with the negotiation.

Nutter said the Giant lease has changed hands before and noted it is currently held by Royal Oak. Lovell said the current lease is slated to run for another 45 years.

Council is slated to debate an agreement-in-principal to the proposed deal today at 4 p.m. in council chambers. The meeting will be the first time Giant taxes have been debated publicly by council.

Lovell said the effective deadline for a deal is Monday, because Royal Oak's bankruptcy proceedings are scheduled to begin Dec. 14 in Ontario. The mayor added it will likely be months before the contracts that make up the deal will be signed.