HAY RIVER - Hay River town council has expressed reservations about selling two downtown lots to the territorial government.

Michael Miltenberger: Finance minister says GNWT-constructed building one option for new liquor store. Kelly Schofield: Hay River mayor says council can't make decisions based on rumours and speculation. - NNSL file photo

At their Feb. 22 meeting, some councillors – along with rumours in the community – suggested the GNWT plans to use the land to build a liquor store.

When contacted by News/North, Finance Minister Michael Miltenberger confirmed the GNWT is, in fact, looking at the land as a possible site to construct a building to house a liquor store.

"We're currently engaged in a process to look at all our options," Miltenberger said.

The other option is to rent or lease new or existing space, including possibly leasing space in the building currently housing the liquor store, if it can be reconfigured to meet space requirements.

The minister stressed no final decision has been made, although he said the liquor store will be in the downtown core.

"We just have to figure out the best way forward," he said.

Miltenberger said the location of the liquor store is an unresolved issue dating back to 2006.

The current operator of the liquor store – Hay River Liquor Retailers (1991) Ltd. – sought an application from the town to move the store from downtown to a warehouse in the industrial area. A number of individuals and businesses fought the move and the issue made its way to the NWT Supreme Court.

In 2008, the company withdrew its application to the town, prompting the NWT Liquor Commission to withdraw its offer for a new contract to the company and to cancel its request for proposals.

The operator's contract was extended to the end of this March and Miltenberger said it will be extended again while the issue is worked out.

At the Feb. 22 council meeting, Coun. Kevin Wallington recalled the last attempt to move the liquor store.

"It turned into a complete nightmare," he said.

Wallington said he wants more information on what might be developed on the lots.

Coun. Bernard Langille raised the concern that the GNWT might operate the liquor store itself, something Miltenberger said won't happen.

The minister added a new building would just be for a liquor store with sufficient storage, but not a warehouse.

A new store won't need a warehouse, he said, calling it a "remnant of a bygone age" when smaller communities ordered alcohol from Hay River. Now, all liquor stores order from suppliers.

At council's Feb. 22 meeting, Mayor Kelly Schofield argued that council should not consider what might be done with the land.

"All we're dealing with tonight is the land sale," he said, adding council cannot make a decision based on rumour and speculation.

Schofield said development is dealt with after land is sold.

Speaking later in the week, the mayor said the town needs to develop and to do that it needs to sell land.

Schofield said council has the right to deny a land sale, but it has never been done in Hay River as far as he knows.

Miltenberger said it is hoped the issue will be sorted out in the next few months.