HAY RIVER - Hay River town council has narrowly approved a controversial $66,000 sale of two side-by-side lots to the GNWT.

However, the votes - one for each lot - could not have been any closer for the third and final readings at the April 26 meeting of council.

Mayor Kelly Schofield cast the deciding vote, which is somewhat of a rarity. A mayor votes only when a vote by councillors is tied.

The GNWT is considering the land on Lepine Street as a possible site to construct a liquor store.

The sale has not yet been finalized.

"One of the options would be to build and tender the operation out of that building," said Drew Williams, the press secretary for the Department of the Executive.

Williams added another option would be to have the private sector provide space through a formal process.

"No final decision has been made," he said.

At the April 26 meeting of town council, three councillors declared a conflict of interest because they are GNWT employees. That left four councillors to vote on the sale.

Reiss Kruger and Bernard Dueck were in favour, while Kevin Wallington and Bernard Langille were opposed.

The opposing councillors expressed concerns over rumours about unspecified legal issues around the GNWT's purchase of the land.

Wallington asked that council seek documentation from the GNWT "strictly speaking to the legality" of the land purchase.

Afterwards, Wallington said his understanding is there are questions in the community about which territorial agencies and departments, such as the NWT Liquor Commission, can own land.

Williams said title to the land would be held by the GNWT, not a particular department or agency.

At the April 26 meeting, Schofield said council shouldn't deal with speculation, rumours and hearsay about the sale.

"It's not our business to make sure they're doing their business efficiently," he said of the GNWT. However, he noted, if there is something amiss with the purchase, the town would eventually get the land back.

The mayor also said what the GNWT plans to do with the land is not something that should be considered when it is being sold. Langille disagreed.

"Our job is really to build a community, not to sell land," he said. The councillor said the sale means businesspeople will have to compete with their own tax dollars.

"I am wholeheartedly against this sale," he said. "I think it's a mistake."

Langille said there is nothing requiring the town to sell land. Schofield responded that would be counterproductive for a tax-based community not to make such sales.

If the deal is finalized, the GNWT would buy the two lots for $66,600 each, plus tax.

The site of a liquor store has previously been a controversial issue in Hay River.

In 2006, the liquor store's current operator - Hay River Liquor Retailers (1991) Ltd. - applied to the town to move the store from downtown to 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 a request for proposals. The operator's contract has been extended while the issue is being worked out.