Both the Great Northern Ski Society and Mayor Dan Curtis are welcoming news that the Yukon government will pay off the society's debts to local creditors.

The city received a letter Monday from Premier Darrell Pasloski that the territory would cover nearly $198,000 in debts that have been accrued at the Mt. Sima recreation facility which closed in July amid its financial problems.

The offer comes after the city ponied up the cash to pay off the more than $190,000 owed on the lift to secure title to it, following the ski society's continued request for funding in order to pay off debts and continue operating.

The financial plight of the hill - which operates as a ski/snowboard facility through the winter with an adventure park in the summer that had opened in 2012 – became clear in the spring when the society sought $400,000 in short-term cash from the city as well as looking for long-term funding. It's most recent ask to the city came after the Yukon government offered to pay off the chairlift debt and was to the tune of $610,000 to pay off other debts and keep the hill going.

The city offered to pay for the chairlift and secure its title so that it didn't lose the asset should the hill eventually reopen, but council stated it didn't have the money to keep things going there and wanted to see a more community-based solution to Sima's plight.

In his letter, Pasloski notes with the city paying off the chairlift, the Yukon government would like to direct its previously-offered contribution to other outstanding debts owed to creditors "so that the city can secure its asset and plan for the future of the Mt. Sima facility unencumbered.”

This morning, Mayor Dan Curtis said he's "really encouraged by YG's move.”

While the city had been left with the impression that if Sima opened in the fall, the Yukon government would reimburse it for the chairlift, Curtis said that won't happen now.

"It's a compromise we're willing to live with,” he said, adding it means numerous local businesses will get the money they're owed by the ski society.

For creditors, he said, "it's outstanding news.”

While the move by the Yukon government is very likely a "game changer” for the beleaguered hill, Curtis said the city is standing by its previous statements that there must be a community approach to opening the hill and the city doesn't have the money to reopen the facility or run it.

"Our stance has not changed at all,” he said.

The city's decision to secure the lift was viewed as an investment by council, he said.

The executive of the Great Northern Ski Society has already advertised equipment – ranging from the T-bar and its generator to a half-pipe groomer - for sale in an effort to pay off its debts.

While the current board voted earlier this summer to move forward on dissolving the society, it first must be out of debt and that's been the focus of the society, while others have begun looking at how to get the hill reopened for next winter.

This morning current GNSS secretary Lee Vincent said the board read the letter Monday, after receiving a copy through the city.

"We're excited,” she said, adding though members are working on getting in touch with the premier's office to get a better understanding of what it really means and to make sure all the numbers line up.

She said she is pleased there's an ongoing conversation happening between the territory and city on the ski hill and she expects within another day or two to be have a better sense of the situation and what it will mean for the board and Mt. Sima.

Meanwhile, conversations are ongoing with parties interested in purchasing the equipment being sold though none of it has sold yet.

Vincent has stated on a number of occasions the board looked at assets that aren't heavily used in deciding what it would list for sale in case the hill is able to reopen at a future date.

Premier Darrell Pasloski did not return phone calls on the matter by press time this afternoon.

See letter.