The Yukon Agricultural Association's application for land inside the forest research area has been denied by the Yukon land application review committee.

The decision on the controversial proposal that drew significant public debate was released Monday afternoon.

Representatives of the association had appeared before the committee last Thursday to argue its case. They also presented the committee with an amendment reducing the amount of land requested from 45.44 hectares (100 acres) to 16 ha (40 acres).

The research forest is located off the North Klondike Highway near the Takhini Hot Springs Road.

But in handing down the decision, the committee emphasized while there were problems with the location applied for, there is solid support for an indoor riding arena and other facilities being proposed.

'The LARC recommendation to the lands branch cites significant rationale for supporting the integrity of the research facility based on compatible, non-impacting uses for the area including education, agriculture and environmental initiatives as demonstrated through public consultation,' reads the decision.

'Although intervenors did not support locating the facility within the research facility lands, the LARC committee recognized widespread support for the proposal elsewhere in the greater Whitehorse area.'

The association has 60 days to appeal the decision. Intervenors in the application have 20 days to appeal.

Association president Cliff Hanna said Monday he would have to meet with the board to determine what the association will do now before commenting.

'It will take a day or two to decide on our next direction, and what our next steps are going to be.'

The association has spent $42,000 advancing its estimated $3-million proposal over the last year.

Originally, it was to include an outdoor arena, running track, a large fairgrounds and other facilities in addition to the indoor arena, a caretaker's residence and a hay storage facility.

As well as a reduction in land being sought, the association also told the review committee it was axing the outdoor facilities and downsizing the original proposal.

While it's obvious there is support from association members and others for an indoor equestrian arena, there was also a feeling the original proposal was too grandiose, Hanna told the review committee.

Karen Baltgailis of the Yukon Conservation Society welcomed the committee's decision. The society and others have been staunchly opposed to using land inside the research area for anything but educational and research related activities.

The committee's decision, said Baltgailis, is a vote of confidence in the value of the research area.

The society's forest co-ordinator also pointed out the Yukon's forestry branch is developing a proposal to rezone the 600 acres to ensure they're kept for research purposes.

The review committee is advisory in nature, with the minister of Energy, Mines and Resources having the final say on all matters related to land applications.

As far back as early last spring, minutes from a board meeting of the agricultural association indicated the minister, Archie Lang, was in favour of the location inside the research forest, though the application was still working its way through.

The association president said recently the board minutes probably don't reflect exactly what was said, or were probably a suggestion that if the review committee approved the application, the minister would support it.

Asked if the minister would move ahead with the application in the absence of approval from the committee, cabinet spokesman Peter Carr said this morning Lang is not commenting on the issue, as there is still an appeal period pending.

'It would be inappropriate for the minister to comment at this time,' Carr said.