There is more bad news for the people who live in Yellowknife’s Northlands trailer park. The territorial government just said no to the City of Yellowknife’s request for an interest-free loan for the struggling subdivision.

Last week, the federal government said it would not help pay for new sewer and water pipes in the area.

Northwest Territories Finance Minister Michael Miltenberger said the government has tried every possible program that is available to help the people of Northlands, but that the government can't give them an interest-free loan.

"We have no real policy that allows us to do that, we don’t have the financial flexibility to do that, and the other one is the significant concern about what a precedent it would send," he said.

City councillors discussed the administration’s latest ideas for the subdivision. Councillor Bob Brooks said it’s time the Northlands condominium corporation and the city started working together.

"If we don’t work on some sort of solution together, then I foresee a lot of foreclosures, a lot of bankruptcies. And basically, all of that area going down the tubes. I don’t think that is stressed enough, or at all, in this memorandum," said Brooks.

Councillors voted unanimously to have the condo corporation and the city work together on a memorandum of understanding which would clearly outline how they’re going to find a solution, and who will pay for it.