After reviewing a proposal to connect 22 of the planned 32 residences in Takhini West to the Alaska Highway, the Yukon government has come back with a decision - 'no.'

The proposal was designed as a compromise with the Takhini West Nieghbourhood Association whose members rejected designs to connect all 32 units to Normandy Road.

The association's members have stated that 32 units would change the character of their neighbourhood and cause traffic problems and threatened to take the matter to the Yukon Supreme Court.

Darren Butt of the Department of Highways and Public Works said this morning while the government reviewed the proposal, it had rejected it in the interest of public safety.

'We look at each proposal uniquely according to the proposal given to us (and) this development will not be able to use the Alaska Highway.

'We worked diligently and we just realized it's not a viable proposal right now. For safety purposes we just can't do it,' Butt said.

Butt said the developer was still able to come back to the government and propose other options.

Coun. Doug Graham said today in light of the proposal's rejection, he didn't see the building of 32 units on Normandy Road as a viable option any longer.

'Well, I don't know what that means to (other councillors), but if the developer doesn't have access to the highway, I just don't see how he can expect to build more than 20 houses in there,' Graham said.

'I would have to think I'd be leaning to restrict the number of units in there. Otherwise it just doesn't make sense. I don't know what (the developer) is going to do,' he said.

A spokesperson for the developer, Ian Robertson of Inukshuk Planning, reiterated this morning that restricting the number of residences in the development was not a financially viable option for the developer.

'Well, I think the developer has made his case for the number of units he needs for the development clear, he's been very consistent.

'Twenty units is not viable, it's entirely different development wise. He's said all along he needs 32 units,' Robertson said.

He said the Alaska Highway option was only considered to appease the residents of the area and that the developer felt that connecting all the units to Normandy Road was still the best option.

'The Alaska Highway plan was made in order to appease the residents.

'What people don't appreciate is that the developer could build 40 units there. He's made concessions, he's gone from apartments to townhouses,' he said.

He said he didn't appreciate Graham's comments and felt the developer was being sent a clear message.

'It's nice for Coun. Graham to deal with other people's money. They have to deal with the development plan on its own merit.

'What they're (council) basically saying is that they don't want the development to go ahead.'

Takhini West Neighbourhood Association president Lori Wellspring said this morning she was happy the proposal would likely be restricted to 20 units saying 'this is all the residents have said they are willing to accept all along.'

She said in light of Graham's comments, she felt the voices coming out of Takhini West were being heard.

'I'm glad to hear that there's at least one councilor that is listening to us.

'We oppose anything over 20 units,' she said.

She said while the developer's representative has met with them once, they have refused to meet with them since.

She said the developer will now only negotiate with them through the city.

The identity of the developer being represented by Robertson is still unknown.