Yellowknife (Jan 05/07) - The contentious issue of Yellowknife River Resorts' land acquisition flared to life again at the Municipal Services Committee meeting on Tuesday.

Gerry Cheezie, a representative of Denendeh Development Corporation, talks to city council at City Hall on Tuesday. He was asking the city to sell four lots to Yellowknife River Resorts in order for the group to build access roads to the hotel and convention centre they have been proposing to build since 2002. - Peter Crnogorac/NNSL photo -

Council and city administration members discussed selling four lots along Franklin Ave. to Yellowknife River Resort - a group of four aboriginal partners - to be developed as entrance ways to a proposed hotel and conference centre on Twin Pine Hill overlooking Yellowknife Bay.

Some councillors had questions concerning the time it has taken for the group to begin construction.

"I have a number of concerns about this transaction," said Coun. David Wind. "There seems to be a number of deadlines missed. It concerns me that a third party that may be interested in this land is unable to bid on it."

In 2002, the group was given 10 years to build the resort or give the land back to the city for resale. Now, four years since the deal was made, besides some surveying work in the area, no breaking of ground has occurred.

Gerry Cheezie, representing Denendeh Development Corporation, spoke to council on Tuesday.

"This is going to be a good deal for the city," he said.

"We (aboriginals) make up a significant part of Yellowknife and we're not very visible in this place."

Cheezie said that the group does not deny that it has missed several construction deadlines for the project.

"We don't have all the resources people think we have," he said.

The $25 million project has been in and out of the news since the deal was made in July of 2002.

In 2004, work was halted by what Margaret Gorman, manager of the Denendeh Development Corporation, said at the time were "technical difficulties" in building a road to Twin Pine Hill.

Recently retired councillor Kevin O'Reilly spent much of his last term criticizing the project.

In 2005, O'Reilly complained about the secrecy of the deal between the city and Yellowknife River Resorts. It was agreed between the two parties that the city would not disclose details of the deal.

"Here's the city disposing of publicly-owned lands and putting terms and conditions on development that can take place there, but the public doesn't know," O'Reilly told Yellowknifer in 2005.

On Tuesday, not all councillors felt the deal to sell the land to Yellowknife River Resorts was a bad decision.

"I support this motion," Coun. Mark Heyck told his peers. Coun. Kevin Kennedy said he had some concerns with the land being sold to Yellowknife River Resorts, but overall he said he saw positives in the deal.

However, this didn't stop him from questioning city administration on Tuesday on their commitment to have the project move forward.

"The question is: does the city want this to happen," Kennedy asked.

Mayor Gord Van Tighem voiced support for the deal. He said he thinks the potentially lucrative business could benefit the aboriginal community in Yellowknife.

The motion to sell the land to Yellowknife River Resorts will be voted on at the next council meeting at City Hall on Jan. 9.