As the city anxiously awaits the creation of new residential development, council took its first step Monday evening toward planning the new Arkell subdivision.

City planner Mike Gau presented an administrative report at Monday evening's standing committee meeting recommending the city award the planning contract to Inukshuk Planning and Development.

The city received proposals from UMA Engineering Ltd., Yukon Engineering Services, and Inukshuk Planning and Development.

Gau said a review team evaluated proposals based upon the project team, approach, past experience, local content and fees.

'Inukshuk submitted fees of $92,527 plus GST, which is within the budget funds available.'

Gau told the Star later in the evening the budget has $100,000 allocated for the project. The money would be 100 per cent cost-recoverable from the land owner, which is the Yukon government, Gau said.

'The 2007 budget allocated money for the Porter Creek D' development,' said Gau, reading from a prepared statement.

'Arkell has been identified as the priority residential project at this time, so the recommendation is that funds be re-allocated to the Arkell expansion project.'

The proposed development site is a 13-hectare parcel currently owned by the Yukon government. It is located north of the existing Arkell subdivision, and south of the McIntyre subdivision.

Gau said the area was proposed for residential development in 1989 when the existing Arkell subdivision was developed, but aboriginal land claims were still underway and the area was a potential land selection.

Last May 31, 67 per cent of voters in a referendum opted to re-zone the land from Greenbelt to Urban Residential, changing the Official Community Plan (OCP).

City council will vote next week on the matter of awarding Inukshuk Planning and Development the contract for the Arkell subdivision planning and preliminary engineering design.

'This is the very first step in the planning process,' Gau said.

Councillors Doug Graham and Florence Roberts asked what type of housing will be built in the expansion area, and whether council could recommend that a portion of the lots be for affordable housing developments.

'Are we going to stress that we'd like to see affordable housing?'

City manager Dennis Shewfelt said council could express those kinds of concerns during the planning process in the months ahead.

'If the city has input, that can certainly be incorporated,' Shewfelt said.

The planning process is forecast to last until February 2008, when the matter will likely return to council for a decision on zoning.

Council will decide at next Monday's meeting whether to award the contract to Inukshuk Planning and Development, to re-evaluate the proposals, or to cancel the project.