City administration is recommending that the city sell a Copper Ridge-area lot to the Yukon government for the nominal price of $1.
The parcel, called lot 520 and located between Copper Ridge Place and Falcon Drive, is identified for potential development.
The 2.02-hectare lot is worth approximately $495,413. The site can only be used for low-density residential development, and could potentially accommodate 248 people or 103 units. There are no easements on the land.
On April 22, council approved a master plan for the land to ensure it can be developed in a logical and integrated way.
The plan includes two fully surveyed lots and a portion of an adjacent property the government owns (lots 519 and 518).
“Following the approved directives in this master plan, it is suggested that the City of Whitehorse transfer its lands (lot 520) to the Government of Yukon,” Kinden Kosick, the city’s land development supervisor, told council last Monday evening.
“Prior to being considered for development through the master plan, lot 520 was being used as park space, and lot 519 was originally slated to be a school site.”
There are no plans to build a school in the area.
In return for transferring the lot to the government, the city will get another parcel in equivalent size through the development process.
Administration is also recommending adding a stipulation in the sale agreement requiring the developer to enter into an agreement for the anticipated development within five years. Failing that, the lot would be transferred back to the city.
As the land is worth just under $500,000, the proposed $1-sale confused Mayor Laura Cabott. Once the land goes to the government, she asked, where does its value go?
Kosick emphasized the amount of green space in the area is serving recreational purposes. Once the lot is sold, he said, the city will gain the same amount of green space to replace it.
“YG typically has sold at cost recovery, and in this case, it is a government partnership, and initiatives to get this land out to the development community, and that is kind of the purpose for the nominal value transfer,” Kosick added.
Coun. Kirk Cameron asked whether the city can use this opportunity to gain some other type of land, instead of green space. Administration didn’t have enough information on hand to answer that, but said there will be opportunities to acquire other types of land.
As the developer’s plans advance, added Mike Gau, the city’s development services director, further input from neighborhood residents will be considered during the land zoning stage.
Coun. Dan Boyd said the city could lose the opportunity to earn more, as the lot’s value could rise during the development process. He suggested the city should get back part of the difference.
“If they (YG) turn it further into a developer, that developer could just sell it at whatever the market will be, or they develop the whole individual lot to put the housing on them and they can sell individual products and leave the building community in Whitehorse out of it,” said Boyd.
City administration replied that once the land goes to YG, it will write the sale agreement, and the city’s land disposition bylaw can do nothing about it.
Other concerns were that YG could hold the land idle for a long time, while the city could look for builders to create more homes in that time.
Kosick noted that based on its track record, YG is the best choice to turn the land into its best use, whereas some developers could simply let it sit if they acquired control.
Some council members suggested collaborating with YG to look for developers to help alleviate the chronic housing shortage as soon as possible.
The matter was scheduled for more discussion at this evening’s council meeting.