Yellowknife (Jun 28/06) - A city council vote approved funding to design for a sports fieldhouse that may ultimately cost $22 million to build and lead to a six per cent tax increase.

Coun. Doug Witty saw his motion supporting the facility pass overwhelmingly Monday night 6-1, but it did not succeed without some heated debate.

Options Option one -- A $16 million "scaled back" facility. Funding will come from $11.05 million from the city's Major Community Facility Reserve and $3.2 million from Community Capacity Building Fund from Ottawa. Facility for Kids would also come up with $1 million, plus $750,000 from a yet-to-be-named sponsor. About $135,000 in annual operating costs anticipates a 0.83 per cent property tax increase. Option two -- A $22 million facility. Costs to be covered from funding and sponsor mentioned above, plus $6 million borrowed at 6.5 per cent interest over 10 years. The proposed tax increase is 5.02 per cent plus 0.83 per cent for operating costs for a total of 5.85 per cent. Option three -- A $22 million facility. Costs to be covered as in Option one, plus $6 million borrowed with interest payments for first five years at a cost of $390,000. About $6 million in principle would be paid in 2012 when city anticipates there will be sufficient funds in Major Community Facility Reserve. This would result in a 3.22 per cent tax increase.

His motion directs city administration to hire an architectural and engineering firm to design a fieldhouse that will either cost $16 million or $22 million, depending on which option council ultimately chooses.

Either way, all three funding options presented to council will likely lead to a property tax increase: of from 0.83 per cent to 5.85 per cent.

All three options come with a $1 million contribution from Yellowknife sports group Facilities for Kids and $750,000 from a yet-unnamed sponsor.

Facilities for Kids president Mike Roesch pleaded with council to adopt the $22 million option, saying it's easier to scale down than up when the decision needs to be made to build it.

"It's like getting a haircut," said Roesch.

"If you get the small one, you're stuck with that one for however long it takes to grow back."

While Coun. Kevin O'Reilly voted in favour of Witty's motion, he hinted he may not support the actual construction of the fieldhouse after the design plan is complete.

He insisted before voting for the motion that council give a green light to a design plan for a new library as well.

"If we proceed with this, we won't have a new public library for eight or more years," said O'Reilly.

"I'm not prepared to wait that long."

Coun. Blake Lyons reminded council that only 20 months remain until the 2008 Arctic Winter Games take place in Yellowknife. He said the city has no choice but to build the fieldhouse because the city promised winter games officials it would be complete in time for the games.

"As far as I'm concerned, that fieldhouse is going to be a reality," said Lyons.

"I'm just not sure what's going to be in this."

Coun. Alan Woytuik earlier seemed prepared to vote in support of hiring a design team, but changed his mind after other councillors refused to accept his amendment to limit spending on design plans to $600,000.

He called it a "disgrace" that other projects - like fixing up council chambers for wheelchair accessibility - can fall by the wayside while councillors were prepared to empty the city's capital fund on another sports facility.

If the fieldhouse goes through, Woytuik figures it will mean a tax increase to pay for it will come in 2009.

That would mean council will have voted for tax increases four out of five years since 2005. He also took aim at Lyons' insistence that the city promised winter games officials that the 2008 games would come equipped with the fieldhouse.

"This idea that we'd commit to a 20-month window is rubbish," said Woytuik.

The city expects architectural and engineering plans to be complete by late September or early October, a few weeks before this year's municipal election.