Mike W. Bryant
Northern News Services
Yellowknife (Aug 24/05) - A city councillor says the public deserves to know what's inside a secret agreement between the city and a developer to build a $25 million resort atop Twin Pine Hill.
The catch is that the public won't know unless Yellowknife River Resorts decides to make the agreement available. That decision was handed down Monday night after city council debated rulings on a public hearing to rezone the land.
Mayor Van Tighem says development agreements between developers and the city are typically private to ensure confidential information, such as land value, isn't leaked to competitors.
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Coun. Kevin O'Reilly said now that negotiations for the land are long over, the ruling is just plain wrong.
"Here's the city disposing of publicly-owned lands and putting on terms and conditions on development that can take place there, but the public doesn't know," said O'Reilly.
"I just think that's wrong. That's been the past practice, and it needs to be changed."
The councillor referred to the legal quagmire the city entered last year when it tried to change the development scheme for Phase VI of Niven Lake: it was taken to court by a local resident and lost.
O'Reilly asked administration to seek a legal opinion on the ruling, fearing that the city's reluctance to disclose the details of the agreement might lead to another court appearance.
The development agreement was signed more than two years ago, but no sign of construction on the prominent city landmark is evident.
Last year, the executive director for one of the partners with the project, Denendeh Development Corp. - now called Denendeh Investments Inc. - told Yellowknifer that work on the 1.85 hectare project would begin this spring.
O'Reilly said it's time the city implemented its own access-to-information bylaw, which the city has pledged to do, but he claims the move is being blocked by Couns. Doug Witty, Alan Woytuik, Bob Brooks, and Dave McCann.
Woytuik said an access-to-information bylaw, will come before council later this year. The other councillors singled out by O'Reilly couldn't be reached for comment.
Mayor Gord Van Tighem said development agreements between developers and the city are typically private to ensure confidential information, such as land value, isn't leaked to competitors.
Nonetheless, if administration finds that all is not well with the way the city does business with developers, Van Tighem said City Hall will do what is necessary.
"If there's something in there that needs a rule change we will," said Van Tighem.
Denendeh executive director Margaret Gorman could not be reached for comment. Neil McFadden, the CEO of the Yellowknives' Deton' Cho Corporation, said they are silent partners only, and declined to comment.
He did say, however, that "it might be a big surprise" when construction does finally begin.
Yellowknife River Resorts has 10 years to build the resort. If nothing happens after that, the land will revert to the city.