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FOR RELEASE     #05-030
February 14, 2005

Fentie And Bourassa Reach Understanding On Athletes' Village

WHITEHORSE - Premier Dennis Fentie and Whitehorse Mayor Ernie Bourassa have signed a memorandum of understanding (MOU) that they will now take to their respective governments to assist the Canada Winter Games host society to complete an athletes' village for the 2007 games.

Under the MOU, the government has committed to providing more than $20 million to the project, along with assistance with the planning, designing and managing of the construction of the facilities. The city will provide a grant equal to all municipal property taxes on the village for 10 years.

In addition, subject to approval of the sale by a city bylaw, the city will put the proceeds of the sale of 2 lots in the downtown Motorways Subdivision near Second Avenue and Ogilvie Street towards the cost of the village. This is valued at $2 million.

The government will work with potential stakeholders to identify and discuss options for the use of the facility, which will be located at the Yukon College site, after the games.

"This is another example of how the games can provide a positive legacy for the Yukon," Fentie said. "The Yukon government has a significant stake in ensuring the success of these games and is pleased to be working cooperatively with the city and the host society in the best interest of all Yukoners."

"The city is certainly pleased that we are able to work together with Yukon to ensure the development of another permanent structure that will remain after the games to serve the citizens of Whitehorse and the Yukon,” Whitehorse Mayor Ernie Bourassa said.

Fentie and Bourassa signed the memorandum today.

"This is a great next step in ensuring we have all of the facilities in place for the Games," Host Society president Piers McDonald said. "The games have already generated a tremendous amount of economic activity and the athletes' village is another example of how that activity will continue."

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Att.: Canada Games Financial Support Memorandum of Understanding

CANADA GAMES FINANCIAL SUPPORT
MEMORANDUM OF UNDERSTANDING

THIS AGREEMENT made at Whitehorse, Yukon

BETWEEN:

The Government of Yukon as represented by the Premier ('Yukon Government')

AND:

The City of Whitehorse as represented by the Mayor ('City of Whitehorse')

Collectively the parties (the 'Parties') to this Memorandum of Understanding ('this MOU')

WHEREAS the 2007 Canada Games ('the Games') represent a unique opportunity to promote the Yukon on a national stage;

WHEREAS the Games are already generating economic activity and will continue to generate significant economic activity in the Yukon, and particularly the City of Whitehorse, through to 2007 and beyond;

WHEREAS both Parties want to ensure that the Games generate a positive legacy for local communities and residents;

WHEREAS both Parties agree that taking a cooperative approach to managing Games-related issues is in the interest of all Yukoners;

WHEREAS the Government of Yukon has already contributed or committed to contributing in excess of $27 million towards the Games;

WHEREAS the City of Whitehorse has accepted responsibility for any Deficit of the Host Society;

WHEREAS the Government of Yukon is prepared to commit additional funding and resources for development of the Athletes' Village at an estimated cost in excess of $20 million;

WHEREAS the Government of Yukon and the City of Whitehorse have identified a benefit to the development of permanent structures for the athletes village that will remain after the Games to serve the citizens of the City and the Yukon;

WHEREAS the Government of Yukon is considering potential post-Games uses for the facilities;

NOW THEREFORE the parties hereto agree as follows:

1.0 Athletes' Village
The Government of Yukon agrees:

1.1 To provide financial and human resources to the Host Society to plan, design and manage the construction of the facilities required for the residential component of the Athletes' Village in accordance with Canada Games Council standards.

1.2 That in the event the overall cost of the Athletes' Village is less than $12 million net, one-half of the difference between the final cost and $12 million net, will be deducted from the City of Whitehorse's contribution described in this agreement, as per the example shown in Appendix A.

2.0  Motorways Subdivision
The City of Whitehorse agrees:

2.1 To sell the Government of Yukon Lots 8 and 9, Block 316 (1.27 hectares) in the Motorways Subdivision for the assessed value not to exceed $2.0 million dollars, to be developed by the purchaser in a manner consistent with the City of Whitehorse Zoning Bylaw, Waterfront Plan, Waterfront Design Guidelines and with similar conditions to the Purchase/Sale Agreement between the City and Yukon for Lot 11, Bl 316, Pl 87156 LTO.

2.2 To contribute the full amount of the aforementioned revenue from the sale of land to the Host Society for construction of the Athletes' Village.

3.0 Grant-in-lieu of Taxes
 The City of Whitehorse agrees:

3.1 To provide a grant equal to all municipal property taxes on the permanent structures developed for the Athletes' Village at or near the College for 10 years, but not to exceed a maximum of $2.5 million, beginning upon substantial completion of the facilities, as long as the facilities remain in the possession of Government of Yukon or entities of Government of Yukon;

4.0 Infrastructure Projects
The City of Whitehorse agrees:

4.1 To submit two applications under the Municipal Rural Infrastructure Fund, firstly for the extension of Hamilton Boulevard and secondly for infrastructure in the Takhini North Subdivision, and;
If the projects are approved, the City of Whitehorse agrees to contribute one third of the capital costs for the projects, up to $3.5 million for Hamilton Boulevard and up to $2.7 million for Takhini North, with the intent to complete both projects by 2008.

5.0 Athletes' Village Permits
The City of Whitehorse agrees:

5.1 To contribute funding to cover all municipal fees for all construction related permitting for the Athletes' Village; approximate value $150,000.

IN WITNESS WHEREOF the Parties agree to take this MOU forward to their respective governments for ratification on the dates noted below.
 

   
    APPENDIX A

Estimated Value of Contributions:

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