Watson Lake and Dawson City signed agreements Wednesday afternoon enabling them to take over responsibility for developing land in their communities – if they want.

Watson Lake Mayor Richard Durocher said the Watson Lake agreement permits the community to develop land itself, hire a private developer or maintain the practice of having the Yukon government do the developing.

Durocher said the community wanted to have different options available as the need for more residential and industrial lots in Watson Lake is approaching the critical point.

There are still some residential lots available, but not many, he said, pointing out there was a run on lots last year.

Durocher emphasized Watson Lake wanted the option of local control, and has been talking about the agreement with the Yukon for quite some time.

It does not want to be in a position anymore where the government is the only developer in town, particularly with the results of its Whistle Bend project, he said.

Watson Lake, said Durocher, can't afford to be selling vacant lots at $120,000-plus.

Put the cost of a house on top of that, and home buyers will be paying off their mortgages for the rest of their lives, he said.

He said if Watson Lake had to sell lots for the cost of the Whistle Bend lots, they simply wouldn't sell.

"The protocol agreement makes sure we are in the process from the ground up,” said Durocher.

"And the most important part of it is that it allows the Town of Watson Lake to become the developer, because in the old days, it was the Yukon government.”

Durocher said Watson Lake will immediately begin exercising its new authority to guide future development.

It doesn't mean new lots will be ready for sale over the counter tomorrow, he said. It does mean any new lots available in Watson Lake from here on will have the town's stamp on them.

The mayor said an area for a substantial urban subdivision development of approximately 200 lots has already been identified, right next to existing water and sewer infrastructure.

There's also been an area identified for a modest expansion of the town's industrial area, as well as a large area identified to accommodate country residential development, he said.

In Watson Lake, said Durocher, anything more than $25,000 or $30,000 for a country residential lot is too high.

He said the town wouldn't be able to move them.

When the government tried to auction off its last lot in the Whitehorse Copper country residential subdivision last year, it set the minimum bid at $200,000. There were no takers.

Durocher said under the agreement, the town is still able to use the government for the financing.

So if Watson Lake decides to hire a private developer, the government will still provide the financing, just as it finances residential developments across the Yukon, including Whistle Bend, he acknowledged.

He said if Watson Lake wants to build the subdivision itself, it can use government financing.

Personally, said the mayor, going to the private sector would be his choice. The sector has its profit margin on the table when it commits to a development contract, he noted.

Durocher said under the agreement, the municipality can determine whether to sell the lots at the cost of development, or market value.

Community Services Minister Elaine Taylor said this afternoon the agreements with Watson Lake and Dawson City were fashioned after a similar protocol agreement with Whitehorse which came into effect in 2006.

"This does empower the democratically elected councils to define the future of their land and how they will use those lands,” she told the Star.