Iqaluit restaurant closes amid legal battle to stay in Hotel Arctic building

The Waters' Edge Seafood and Steakhouse and Kickin' Caribou Pub are closing on Friday, after its owners lost the right to stay in the Hotel Arctic building while they wait for an appeal of their case to be heard.

The establishment is owned by sisters Kim and Donna Waters, who argue they had a verbal lease agreement with the previous owners of the building that ran until 2023. However, a judge ruled in July that the lease ended on Aug. 31. The sisters are appealing that decision.

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The new owner, Qikiqtaaluk Properties Inc., wants the restaurant out, so it can finish redeveloping the building as classrooms and a residence for Nunavut Arctic College's new law program.

The appeal may not be heard until late September, so a stay of proceedings was granted to allow them to keep the restaurant going until Sept. 30. But this week, a judge has overturned that stay, and the restaurant and pub needs to be out by Aug. 31.

The court held that the Waters' Edge staying open was causing Qikiqtaaluk Properties more harm than the sisters would suffer by closing the restaurant before the appeal is heard.

The court decided that Qikiqtaaluk would likely see delays in construction, which would tarnish its reputation because it would not be able to meet the requirements laid out by the territorial government for Nunavut Arctic College.

The building is supposed to be operational for the college's start of classes Sept. 5.

Damages could run 'well into the millions'

According to court documents, furniture is being flown in and workers are doing double shifts to get the construction done on time — something that would not have been possible if the restaurant stayed on site until the end of September.

The appeal will go ahead, but now the sisters will be seeking damages, instead of the right to keep the restaurant open.

Their lawyer, James Morton, estimates that damages could run "well into the millions," accounting for employee severance pay, shuttering costs and the loss of business for the five years they won't be operating.

"They're very disappointed that the restaurant doesn't continue. It's been something of a life's work for them," he said.