Yellowknife (July 07/04) - Sport North's hopes for better office accommodations were squashed last week.

The organization missed the GNWT imposed deadline to save the old jail administration building from demolition. Sport North was hoping to move its offices, but that's no longer a possibility.

The problem wasn't the deadline itself, but the city and Sport North's inability to reach a workable agreement on terms for the building's occupancy.

"We're a program delivery organization. For us to get involved in capital projects it has to be economically sensible," said Doug Rentmeister, executive director for Sport North.

Not only was the administration building cost effective at $1.2 million it also had the space it needed to increase capacity and possibly house all the NWT sport partners.

With the impending new recreation council, which would integrate all of those organizations, the building was that much more desirable.

It also helped to prompt the GNWT to back Sport North's plan to acquire the building.

That was something the territorial government did not do 10 years ago.

At that time Sport North was considering the space that is now occupied by the SideDoor Youth Centre.

With all the funds in place the building would have been purchased with no debenture, but the plan was axed by the GNWT.

"They didn't want to get into capital projects," said Rentmeister.

With territorial support this time around Sport North was pushing full steam ahead and felt confident they had city backing.

"There were a lot of verbal assurances and unfortunately what we did was count on those assurances," said Rentmeister.

"We were sort of left with egg on our faces afterwards."

Coun. Bob Brooks said they had offered Sport North a nominal lease rate, nominal meaning virtually nothing or $1.

However Rentmeister said they would have been stuck with the cost of tearing down the fence and paving the site.

"That would have increased our costs by 60 to 70 per cent," said Rentmeister.

However that was not the sticking point to the agreement.

Axed by a tax

Negotiations collapsed when Sport North couldn't get a guarantee from the city for a deal on the property taxes.

"We were under the impression we were going to get a similar deal as other non-profits," said Rentmeister.

"The city did allow us to go back to council and ask for a favourable deal on the property taxes, but we had no guarantee."

Without that verbal assurance, Rentmeister said he could not have justified proceeding to Sport North members.

"When you work at a project for this long and it falls by the wayside you're always frustrated. But, that's the way it goes," he said.

As one of the proponents that fought to approve Sport North's application to use the old prison building, Brooks said he is also frustrated.

"I thought they would be a great addition to that site," he said.

"They basically just wanted to pay no taxes."

Brooks said the city could and would never go for such a proposal.

The city did offer to look at grants or reduced taxes, but Sport North did not come to council to discuss such measures.

This is something Brooks said they should have done when they came to council initially to request the building. "Every non-profit organization pays property taxes," said Brooks.

There are a few like the Legion, the Salvation Army and all the churches that pay reduced taxes.

"If they all paid no taxes the city would be out of business, or everyone else would pay double," said Brooks.

The jail administration building is now slated for demolition by Sept. 30.

Rentmeister said Sport North is now back to square one, but he added, at this point there really are no other options available.