SOMBA K'E/YELLOWKNIFE - The Yellowknife Elks Lodge is contributing $560,000 toward the city's $17-million fieldhouse project in return for exclusive use of a second floor wing by air cadets for the next 20 years.

"It's been a pretty smooth affair, it's a pretty win-win situation," said Dave Hurley, Elks Lodge treasurer and representative.

"We wanted to get a long-term deal for the cadets that matched their needs."

Of the $560,000 sum, $100,000 will be used to offset the cost of play equipment for an indoor playground – open to the public for a fee – while the remaining $460,000 will go toward building the space the cadets will use.

In all, the cadets will have 260 square metres of space to be used for training and offices. The Elks and the city reached a deal on Nov. 26.

Hurley said the fieldhouse location on Kam Lake Road will make it more convenient for cadets to take part in activities.

"It's within the centre part of the city," he said. "It makes it easy for families to get the kids there and for the kids to walk there or bike there."

Grant White, director of community services for the city, said it is hard to determine how much, if any, revenue will be lost through the agreement.

"We have over 3,000 square feet of space available adjacent to the (Yellowknife Public Library)," he said.

"Just recently we've signed a 10 year lease with NACC for $1.00. That spot's been open since 1998," said White, adding there was no interest in the available space until recently.

"Having a space available doesn't necessarily guarantee that you're going to be generating any revenue from it."

The Elks made the proposal to the city last June while there were several groups unofficially vying for the spot, but Mayor Gord Van Tighem said the Elks made the only formal offer.

"There were a lot of options being discussed, but a bird in the hand is worth two in the bush," he said.

He said the agreement would be beneficial to both the city and the air cadets.

"Basically they're prepaying the rent for the next 20 years and doing the renovations that would be required in there to make it appropriate for the cadets," he said.

"The city doesn't have to spend money to furnish the play area or look for tenants for upstairs."

City councillor Bob Brooks, chair of the Fieldhouse Committee said the agreement was the ideal result.

"When you have a facility and you have some rental space then the best that you can do is find a long-term tenant," he said. "And in this case we ended up getting the perfect combination of a community group who also wanted to rent long-term."