Yellowknife (Dec 20/04) - Problems with financing have delayed construction of the Tasiujarjuaq Co-op in Iqaluit until the fall of 2005.

Mary Ellen Thomas, president of the Tasiujarjuaq Co-op ,said the $13 million project was put off because "we didn't get all our financing in place."

The project, which was originally scheduled to start in 2004, is being financed by Arctic Co-operative Limited, but Thomas hopes the grocery store will be taken over by the local arm of the Co-op after a short period.

"Personally, I hope by the time the doors open that transfer will have happened," said Thomas.

Peter Grunen, division manager of business support services for ACL, confirmed a hotel and retail grocery outlet will be built in Iqaluit, with construction starting next year.

Grunen said he expects the local arm of the Co-op will eventually take over the hotel and store operations.

"Over time they may end up buying it all from us. We're putting it all together and we'll run it until they can take it over," said Grunen.

The grocery store entails roughly 10,000 sq. feet of retail floor space and the hotel will be made up of 54 hotel rooms and suites.

The new service, expected to open in the summer of 2006, is backed by at least 500 people in Iqaluit, which corresponds to the number of people who have bought memberships with the Tasiujarjuaq Co-op.

Thomas adds that at this time, the local Co-op is only interested in buying the grocery store and not the hotel.

"At this point it's still (just) the grocery store," she said.

"We were not interested in the hotel because it doesn't serve our residents, other than a few jobs. We were not excited about the hotel, the gas station we are interested in."