As the city gets set to take over Yukon government land on the waterfront, it is also getting documents ready to sign a lease with the Frostbite Music Society.

At Monday evening's city council meeting, members unanimously passed first and second readings of the bylaw governing the lease of the land the society uses as its headquarters.

The society is based out of the historic Chambers House in Shipyards Park on land that is currently owned by the territorial government.

"Administration has requested that the ownership of the 30-metre Yukon River Reserve located adjacent to Shipyards Park be transferred from the (Yukon government) to the city," reads a staff report presented to city council a week earlier.

"This would allow for the entire park area including, the land containing the heritage buildings, to be administered by the city, similar to Rotary Peace Park."

Another lease agreement between the city and territory, signed in 2007, allows the municipality to use the territory's land in the park, which includes the site of the Chambers House and a two-metre buffer on all sides of the building.

"A separate lease agreement is now required between the City of Whitehorse as the primary lessor and Frostbite as the lessee and will outline conditions involved with the maintenance and repair of the building and grounds, payment of utilities and taxes and permitted activities on the land," reads the report, presented by planning manager Mike Gau.

Among the lease conditions, Frostbite would be required to pay an annual $150 fee and maintain a $2,000 public liability insurance policy to protect the city.

"The city recognizes that Frostbite is a non-profit society and has based the annual lease fees in accordance with this, however, Frostbite will be expected to bear all other costs associated with the operation and maintenance of the leased land."

The 10-year lease would expire on Aug. 31, 2019, with an option to renew it a further 10 years. There's also an option to terminate the lease for either party with one-year written notice. Frostbite would then have six months to remove the building.

The city would also waive water utility fees for Frostbite.

"The Chambers House serves as the hub for a water re-circulation system for all the heritage buildings in Shipyards Park," reads the report.

"The re-circulation system is in place to prevent freezing of the waterlines in the area. The recalculation system uses a small amount of electricity to operate so administration is proposing to waive the water utility fees."

All council members at Monday's meeting (Coun. Jan Stick was absent) voted in favour of first and second readings of the lease.

However, Coun. Florence Roberts requested that when discussing another former home on the waterfront commonly known as the Hatch House, the city should refer to it by its original name of the Pioneer Hotel 2.

Council will have to pass third reading before the lease agreement will be adopted.