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SOMBA K'E/YELLOWKNIFE - The downtown post office is up for sale by the federal government but city council is fighting to keep the city-designated heritage site in its current location.

Council designated the building at 4902 Franklin Avenue as a heritage site in November 2006 but the post office and former courthouse building, which opened in 1956, isn't recognized federally as a heritage site.

At a committee meeting on Monday, council asked administration to prepare a letter for the federal government with the mayor's signature explaining the city's concerns.

Former councillor Kevin O'Reilly, who served for three terms until 2006, compiled research about the building's heritage significance until 2005. He said the city should ask Canada Post, which has three-and-a-half years left in its lease for the building, to make a long-term commitment to keep the post office as the "cornerstone" of downtown.

"This is a very important public asset that should stay in public hands," he said. "It's the lifeblood of the downtown for anybody who's lived here for any length of time."

"The city has expended a lot of time and money in trying to improve the downtown," O'Reilly said. "One of the key things is this federal building - it's the heartbeat of the city."

Coun. David Wind, who introduced the matter to council, said the potential sale of the post office is just one of many examples of core businesses leaving Yellowknife's downtown.

But there's already a post office downtown in Shoppers Drug Mart, said Coun. Lydia Bardak, and the pharmacy is currently expanding into a bigger downtown location.

"The sky is not falling," Bardak said. "We don't have to worry about businesses leaving the downtown."

Coun. Paul Falvo said he and O'Reilly plan to hand out letters to the public in front of the post office on Friday at noon so residents can show their support for the building.

"The sky may not be falling but the downtown is losing business," Falvo said at the committee meeting. "I want to see our post office stay where it is and not just become a counter in a drug store."

The post office building has been declared surplus to federal government accommodation requirements, as part of what's called the Federal Real Property Disposal process. The building's owner, Public Works and Government Services Canada, has advertised a $1.6 million selling price.

"There is no specific timeline but our goal is to have the property sold as soon as possible," said public works spokesperson Jeanette Dotimas.

"A number of parties have expressed interest in the property and can present offers to purchase through the realtor, if they wish to purchase the property," she said.

The news the building was up for sale took some staff at Yellowknife's post office by surprise.

"The real estate agent came and knocked on my door and said, 'oh, by the way, the building is for sale. Where can we put the sign?'" said post office manager John Abbot.

Despite the "for sale" sign, the post office will not be moving for now.

"Regardless of who owns the building or transfership, the lease for Canada Post goes with the building," Abbot said. "There are no immediate plans to do anything with Canada Post other than to stay exactly where we are."