THUNDER BAY — A city councillor says Peter Panetta must wait for the completion of a bidding process for a city-owned property at Leith and Hardisty Streets before it's known if it can be made available for his Underground Gym.
Panetta began looking for an alternate site for the youth facility he operated on Simpson Street for more than 15 years after it was damaged by a broken water pipe last year.
He'd like city council to donate part of a three-storey brick structure which used to house the offices of Bending Lake Iron.
But McKellar ward councillor Brian Hamilton says there's a purchase process already underway for the property.
"At this point our hands are kind of tied on that. We're just going to have to wait and see what the report that's coming to council in th next couple of weeks has to say about that," Hamilton said in an interview Wednesday.
He explained that council has obligations to let the bidding process run its course, and wait for administration to submit recommendations.
"Nobody on council or admin would question the utility of Peter's program. We love it...It's very important for the community. But as it pertains to this particular proposal and this particular land there is a process we have to adhere to," Hamilton said.
He added that the Underground Gym isn't the only organization looking for space from the city.
Liens on the property complicate the city's effort to dispose of it
The manager of realty services for the city, Joel DePeuter, said the city listed the building as a tax sale property in 2018.
DePeuter said there are two parts to the structure, and one portion–officially 203 Hardisty St.–was previously sold through a tax sale auction.
The portion known as 201 Hardisty St. didn't attract a buyer at auction, so it was declared a failed tax sale and vested with the city.
That side has what DePeuter described as "large value" liens registered against the title.
He said the city negotiates a deal with the lien-holder in this type of situation.
"We need to agree to a lien payout. So we're not going to realize, in the sale price, the full value of the lien. We have to pay them something...to proportion out the net sale proceeds."
Hamilton noted that there may be other avenues for Panetta to pursue as well.
He referred to a couple of programs the city offers including one in which not-for-profit organizations can receive discounts for real estate purchases.
"For the sake of equity and fairness we have to make sure that we apply those same principles to all organizations that are looking to the city for discounted space or access to surplus property," he said.
Panetta has called the Leith Street building "the perfect location" because it's in the same vicinity where the Underground Gym has served youth for years.
He said he's been using the organization's bus to take teens on outings since November.
