The developers of a new four-storey office and residential building under construction on Alexander Street could receive up to $500,000 over the next 10 years through a development incentive program.

The recommendation for council to approve the incentive was brought forward by planning manager Pat Ross at Monday’s council meeting.

The project, he said, will see six residential units built on the fourth floor, with three stories of office space below and underground parking below.

The developers are listed as 535756 Yukon.

The Yukon government plans to lease the lower two floors, a spokeswoman for the Department of Highways and Public Works said early this afternoon.

The developers also have plans to add landscaping and street furniture on the city boulevard along Alexander Street, meeting a requirement under the city’s major development incentive policy to build an off-site amenity.

As Ross described in his report to council Monday night: “An off-site amenity is intended for public enjoyment or benefit and may consist of permanent art, culture or recreational installations, or streetscape improvements such as boulevard landscaping and street furniture.

“The policy specifies that the minimum value of an off-site amenity should be $20,000 as evaluated by the City of Whitehorse.”

Ross went on to note the city will be working with the developers to ensure the design for the boulevard landscaping and street furniture meets city requirements.

The policy governing major development incentives was adopted in 2011. It was meant to encourage the building of rental housing, mixed-use developments and supportive housing in the city.

In this case, Ross said the development meets the requirements in the policy for mixed use development, including the benefit of underground parking.

Council members noted they’re pleased to see development happening in the area.

Mayor Dan Curtis referred to the investment in the downtown as “pennies from Heaven.”

One councillor, however, was quick to criticize the drawing of the proposed structure included in the report as one of the most “uninteresting” designs for a new development.

“We’re building another box,” Coun. Betty Irwin argued.

“We’re going to become a downtown community of boxes.”

Like other council members though, she said she is pleased to see some sort of development there.

The maximum amount for the grant is set at $500,000 over a 10-year period.

The actual amount the developers stand to receive is based on the value of the improvements made to the land.

Essentially, the developers are granted back – provided taxes are paid in full – the value of the increase in property taxes resulting from development on the land.

The incentive can also be transferred to future owners if the property is sold.

Coun. Dave Stockdale was quick to note the development and plans to upgrade the boulevard could serve as a “great opportunity” for the city to make necessary improvements to the street.

“That road really needs to be fixed,” he said of the condition of the street.

Ross stated in his report there have been discussions between the city’s engineering department and developers to ensure project designs fit with any potential future road upgrades.

Council will vote next week on whether to approve the agreement for the development incentive.

Several old, abandoned houses, one of which was destroyed by fire a couple of years ago, formerly occupied the site.