An interested buyer has been found for the Westmark Klondike Inn.

A letter of intent to purchase the 99-room downtown hotel was signed last night, Steve Leonard, Holland America's vice-president, told the Star today from Seattle.

Leonard gave few details on the buyer except to say the purchaser is Calgary-based and intends to continue using the property as a hotel.

He also remained tight-lipped on the final price.

Ads for the property list the asking price as $5.95 million.

"We are pleased with the result,” he said.

The property consists of four land parcels totalling 4.09 acres. The three-floor, 63,000-sq.-ft. building includes a 275-seat bar, 85-seat restaurant as well as a lounge, banquet room and café.

The sale is expected to close sometime in April.

The hotel was purchased by Holland America in 1982 and used seasonally every summer.

At one time, it was open year-round and was the home to a popular night spot called Trappers.

It was put up for sale early last year.

"It does pretty well during the summer but not nearly enough to justify holding it on the books,” Leonard said.

Late last year, homeless advocacy groups suggested the building be bought or leased by the government to provide shelter for homeless and low-income Yukoners.

The Klondike Inn was the first hotel Leonard was involved in buying when he joined the company 30 years ago.

"Now I am preparing to retire in June, and we are selling it.”

Leonard called Holland America's future in the Yukon "questionable.”

In past summers, rains washed out parts of the Taylor Highway to Eagle, Alaska, and caused slides in other places, making tour routes difficult.

The Yukon Queen II, a tour boat owned by Holland America, has travelled a shortened tourist run for the past two summers, heading about an hour down river to the Twelve Mile and then back upstream to Dawson city.

The boat once travelled from Dawson to Eagle.

Opinions about the boat are divided in Dawson.

Some, including the Tr'ondek Hwech'in Nation, say it does too much damage to fish and to the riverbank while others believe the boat is key to Dawson's tourism industry.

"(The company's future) is highly questionable, but we are going to try,” Leonard said.