Following a heated debate that divided the city's elected officials, city council has voted in favour of a three-storey, 80-room hotel across the Alaska Highway from Whitehorse International Airport.

Monday evening's vote saw council opt to amend the Official Community Plan (OCP) to allow for the hotel.

During the meeting, Councillors Dave Stockdale and Doug Graham voted against the proposal being put forward by local businessman Gordon Clark. The rest of council voted in favour of the highway hotel.

Speaking against the proposal, Stockdale said he had been in contact with a number of tourism professionals as well as residents in the city who advised him that a highway hotel is a bad idea.

'Let's take a long-term view .... I've talked to a lot of professional people in town and ordinary people and they don't think this is a good idea,' he said.

Stockdale cautioned council over permitting the hotel because the idea runs contrary to community expectations outlined in the OCP, which was completed with extensive community consultation.

'I think before we vote on this, we should very carefully about what we're doing; we're being asked to amend the Official Community Plan,' an adamant Stockdale told council.

'It says in the OCP that we should not develop things on the highway that competes with the downtown ... it says that right in the plan.'

In what he described as a rare occurrence, Graham said he was in complete agreement with Stockdale.

'While it's not often that I agree with everything that Coun. Stockdale says, this is one of those (rare) occasions ... (this hotel) is not in the best interest of the city.

'I believe once we start allowing (highway development), it will be really difficult to turn away other operations as they come,' Graham said.

His comments mirror an administrative report tabled at council earlier this month which stated that permitting a hotel on the highway could set a precedent.

'We're in the business of making sure that the city evolves in the appropriate manner. We should be making sure that the city evolves in a way that is a benefit for the majority of citizens,' Graham said

He cautioned the city against moving toward highway development by citing other Canadian cities, specifically Medicine Hat, Alta., which has permitted highway development that decimated the city's downtown core.

Councillors Dave Austin, Mel Stehelin, Bev Buckway and Mayor Ernie Bourassa all spoke in favour of the development proposal.

Bourassa said he felt the OCP restrictions were made to prevent big box stores from being located on the highway but that he didn't feel it applied to a hotel development.

'I support the proposal. We have no business regulating the number of businesses that come into town.

'The intent of the OCP was to limit big box stores on the highway,' Bourassa said.

Also speaking in favour of the development, Austin said he doesn't believe a highway hotel would amount to unfair competition for the businesses in the city's downtown core.

'I don't think it's anybody's business how the proponent goes about his business. I'll support the project,' he said.

Buckway agreed with Austin, saying it's not up to council to regulate business.

'I think it's definitely up to the developer, it's not up to council to tell (the developer) where and how to build his hotel.

'(By law) the developer has a right to apply for an OCP amendment,' she said.

Prior to council debating the issue, members heard from Jeff Wagner who read a letter penned by Clark.

In his letter to council, Clark said he had consulted with Hillcrest residents on the proposal and felt his idea would benefit the tourism industry in Whitehorse and the area's residents.

Clark said he would address residents' primary concerns over traffic and aesthetics.

The hotel proponent also said he would likely not develop a large-scale bar as that was one of the concerns highlighted in his meetings with area residents.

The proposal will now be forwarded to territorial Community Services Minister Glenn Hart for approval.

Any amendment to the city's OCP requires ministerial authority.