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Hay River renews lease for municipal offices

Town council has decided to renew its lease of space in the Wright Centre for municipal offices.

At the March 27 meeting of council, a motion was passed to direct town administration to exercise a one-year renewal option for town hall office space under an existing lease agreement with Hay River Mobile Home Park under the same terms as the previous year.

Kenny Power, an employee of Rowe's Construction, installs the town logo and letters spelling out 'Hay River Town Hall' in January 2017 above the entrance to leased space in the Wright Centre formerly occupied by the True Value hardware store. NNSL file photo

The lease agreement was due to expire on March 31.

The existing agreement provides 4,628 square feet of space and includes an option to renew for two additional one-year periods, including the option exercised this year.

The town pays $148,096 per year – which is $32 per square foot – under the existing contract.

Town administration plans to provide council with a report this summer on the options for demolishing the vacant old town hall building and the options for providing an appropriate space for a permanent town hall facility.

In background information for council, town administration explained a one-year term renewal on the existing lease would allow the time necessary to provide the appropriate information for council's consideration.

In comments to The Hub, Mayor Brad Mapes said council is not yet ready to make a decision, and won't be this year.

"So it probably should be left to the following council to deal with," Mapes said.

Council has discussed on a number of occasions what to do with the old town hall and attached old fire hall, including during deliberations for this year's capital budget.

One option is to sell the old building as is for a nominal fee to avoid the expense of environmental hazard abatement work and demolition.

Another option is for the town to demolish the building and construct a new town hall on the site.

The municipal offices have been located in the leased space once occupied by True Value Hardware since April of 2015.

The old town hall was closed in July 2014 because of air quality concerns.