Westfair is a wholly-owned division of Toronto-based Loblaw Companies Ltd., a national supermarket chain in turn owned by George Weston Ltd.

Council's priorities, policies and budget committee recommended by a 5-2 vote Monday that the city accept a $1.75 million offer from Westfair to purchase a 1.78-hectare plot of land near Stanton Territorial Hospital.

Council will discuss the proposal at a special meeting tomorrow at 5 p.m.

Westfair is planning a large store that includes an expanded offering of fresh foods as well as non-food items such as housewares, hardware, more clothing, a pharmacy, photo lab, and photo electronics department.

The new store, which could be built as early as next summer if approvals and scheduling fall into place, will replace the current Frame Lake location, which is a 35,000 square foot outlet.

The downtown location will remain unaffected.

"The future of Yellowknife looks really good and we want to expand with the community as it expands," said Westfair spokesman David Ryzebol.

The new location for Extra Foods has been a year-long bone of contention as the Stanton Health Board begged the city to delay selling the land.

But the hospital did not submit a bid by a Nov. 8 deadline after the city opened the land to a request for proposals.

Westfair's bid more than doubled the $800,000 list price for the property.

"It's a good deal for the city," said Coun. Dave Ramsay.

If the bid is approved tomorrow, the money for the property will take the city's land fund out of the red, where it has been since the city spent money to develop properties in the Niven Lake subdivision.

Coun. Kevin O'Reilly said he doesn't like the idea of "a big box that likely will not be very esthetically pleasing and will likely generate quite a bit of excess traffic for that area."

Van Tighem said the city will require Westfair to consult with a local landscape architect, "to ensure that it doesn't become a big box with a big parking lot."