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THEBACHA/FORT SMITH
A Fort Smith couple is in jeopardy of losing their house and other property to pay a loan from a territorial government agency.

Clayton Burke, co-owner of Taiga Tour Company, stands in front of his home in Fort Smith. - Paul Bickford/NNSL photo

Clayton and Annie Burke borrowed $200,000 from the Northwest Territories Business Development and Investment Corporation (BDIC) to invest in their tourism business, Taiga Tour Company, close to a decade ago.

Clayton Burke said the BDIC called the loan two years ago.

Since then, it has seized part of the Burkes' business that had been put up for collateral – a bed and breakfast – and sold it for $130,000 last year.

That leaves the couple now owing $143,000 due to accumulated interest and fees.

"It was immoral what they did," Burke said.

As for why the BDIC called the loan, he said he doesn't know. "Nobody has answered me that question, but they want their money back."

The BDIC is now seeking to sell the Burkes' house, where they have lived since the 1970s, and two wilderness camps east of Fort Smith, which were also used as collateral.

The BDIC has to go to court to seize property and sell it, which gave Burke an opportunity to make his case against the sale of the house and camps before NWT Supreme Court Justice Louise Charbonneau late last month. She is scheduled to give her decision on Aug. 31.

One of Burke's arguments is the BDIC didn't get true value for the bed and breakfast, which he said was appraised at $299,000 as a turn-key operation.

"If it was sold at the proper amount, somewhere close to $299,000, it would've covered everything we owe them," he said.

In addition, he said some consideration should be given to Taiga Tour Company as a majority aboriginal-owned business. His wife, Annie, is 51 per cent owner and a member of Smith's Landing First Nation.

Burke, who is representing himself in court, also asked the judge to direct the BDIC to refinance the remaining portion of the loan, compensate the Burkes' company – 892622 NWT Ltd. – for the balance of what they consider a proper selling price for the bed and breakfast, and compensate them for stress and lost income from the sale of the bed and breakfast.

Burke said it appears the only way to stop the sale of the house and camps is to get money from a bank to pay BDIC, but banks shy away when property is involved in legal action.

However, he said the judge may side with him and say there is no justice in what BDIC is doing.

"They've got to back off at some point and realize enough is enough or they're going to look awful bad in the eyes of the public," he said. "Who in the hell wants to go into small business and be treated that way?"

Burke said his house, which he described as log frame and a little rustic, is appraised at $150,000.

BDIC has already advertised the house and camps for sale.

Along with Burke and his wife, a son and several grandchildren live in the house.

"My grandkids come home from school crying one day. They saw the house was advertised in the newspaper," Burke said. "My wife and I are good people, we're honest people, and we pay our bills."

Burke noted he and his wife owed about $300,000 on the loan as of two years ago because of interest and court costs, even though their company was making payments.

Currently, the payments are about $1,200 a month.

Taiga Tour Company was affected just after getting the loan by the 9-11 terrorist attacks in the United States.

"Right after that incident, we lost 85 per cent of our clients," Burke said, adding that while business has rebounded somewhat, American tourists still dislike going through the increased security at the U.S./Canada border.

Bob McLeod, minister of Industry, Tourism and Investment, declined to comment directly on Burke's situation.

"Unfortunately, I can't because it's in the courts and it would be inappropriate for me to comment on it," the minister said.

When asked if he had ever heard of a tourism operator losing a house because of an unpaid loan, McLeod replied, "I don't recall that happened, but I know there were a few that came very close."

McLeod noted the BDIC is an independent Crown corporation, but he appoints board members and provides general direction.

"My understanding is BDIC is very flexible and gives opportunities and concessions for clients to pay back the public money they have taken as a loan," he said. "If somebody makes an offer to settle and if it's reasonable, then the board can decide whether to accept it or not."

Brad Poulter, manager of communications and board support with the BDIC, said the corporation cannot comment on individual client files or matters before the courts.

Burke intends to remain in the tourism business no matter what happens with the BDIC loan.

"I'm not going out of business. Definitely not. No way. I'm even going at it stronger," he said, adding he is still outfitting and guiding in Wood Buffalo National Park, doing trips to Fort Chipewyan, Alta., in a riverboat, and offering tourism training around the North.

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