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YP’s housing and lot development critic Yvonne Clarke

Liberals underspent on lot development, committee told

Community Services Minister Richard Mostyn has some explaining to do about the Liberal government’s record on developing lots, the Yukon Party says.

By Whitehorse Star on December 15, 2022

Community Services Minister Richard Mostyn has some explaining to do about the Liberal government’s record on developing lots, the Yukon Party says.

Officials from the Department of Finance confirmed during a public hearing of the Standing Committee on Public Accounts that “the Liberal government has left millions of dollars on the table, exposing the unreliability of the minister of Community Services’ claims that the Liberals were spending ‘record amounts’ on lot development,” the official Opposition said Monday.

Officials said the Department of Community Services had a budget of $118.8 million for the 2021-2022 fiscal year, but only $86.1 million of that was spent.

“The main shortfall was in lot development in both Whitehorse and the communities,” the YP said.

Officials said a total of $15.7 million went unspent, including $8.5 million in Whistle Bend alone, the party noted.

“We have repeatedly pointed out the Liberals’ delays in lot development and how it is contributing to the housing crisis,” said Yvonne Clarke, the YP’s housing and lot development critic.

“The minister has bragged he was making ‘record-breaking’ investments, but Finance officials have now confirmed millions of dollars have gone unspent.

“Yukoners and builders need these lots to build more homes to address our housing crisis.”

The Liberals had promised phase 6 and 7 of development in Whistle Bend to come online late in 2021 and throughout 2022 – but cancelled the Phase 7 contract in 2021.

“Phase 6B and Phase 7 went unfinished this summer, jeopardizing the minister’s promise of 200 lots this year,” the YP said.

In addition, those delays pushed back tendering of Phase 9 for this fall, as previously promised.

Data from the Yukon Bureau of Statistics released Dec. 5 “show that the continued mismanagement of lot development is seriously restricting Yukoners’ and developers’ opportunities to build more housing,” the YP said.

Compared to last year, the value of residential building permits issued in the Yukon from January to October dropped 27.2 per cent.

The Yukon Party has previously urged the government to identify parcels of land that can be developed by the private sector and provide financial support to municipalities to expedite required zoning and planning with the proper support.

On Wednesday, cabinet communications staff released this statement abut the Yukon Party’s concerns:

“The Yukon Party boasted about population growth for over a decade, but failed to take action to plan for the inevitable increase in demand for housing,” the statement said.

“Our Liberal government continues to make historic investments in lot development across the territory.

“Compared to the previous Yukon Party government, the Yukon Liberal government has tripled the investment in lot development in the Yukon and we continue to work with our partners across the territory to develop land and increase housing options for Yukoners.

“In the last year alone, municipalities across the territory have issued almost 1,300 permits for residential construction,” the statment added.

“We continue to advance Whistle Bend together with the City of Whitehorse as well as development projects across the territory with our municipal partners.”

Comments (11)

Up 2 Down 0

FN bid valuation clause on Dec 23, 2022 at 11:09 am

Bob the builder ain’t got no job:

Does this mean that if there are two bids, one for $90,000 and one from a FN-owned business for $100,000, that the FN-owned business will get it even though it's $10,000 more?

Up 7 Down 4

Wolves in sheep's clothing on Dec 19, 2022 at 7:22 pm

"continued mismanagement of lot development is seriously restricting Yukoners’ and developers’ opportunities to build more housing".

The developers have no better friend than this Liberal government, if it weren't for the shortages this Liberal government creates, they wouldn't be making gazillions off the back of hardworking people.

Up 5 Down 1

Bob the builder ain’t got no job on Dec 19, 2022 at 3:54 pm

Bid value reductions are a tool within the policy that increase the competitiveness of bids that have Yukon First Nations participation.

This means that if a bid has Yukon First Nations participation, we reduce the bid price accordingly when we evaluate the tender. The reduction in price is only for the evaluation process, not the contract amount.

For example:

you are a 100 per cent owned Yukon First Nations business;
you will be completing all of the work on the contract;
and you bid $100,000.
We'll reduce your bid by 15% and evaluate your bid at $85,000. We only reduce the amount during the evaluation process to make the bid more competitive. The actual contract value is the original bid amount of $100,000.

Here is the bid valuation process link:

https://yukon.ca/en/bid-value-reductions

Up 2 Down 0

FN bid valuation clause on Dec 18, 2022 at 10:58 am

Leo,

is there a website where people can see these bid valuation clauses?

Up 11 Down 4

Subcontractor on Dec 17, 2022 at 9:52 pm

Leo I'm not sure where you are getting your 6 million dollar figure. What I do know is that the contractor which had its job cancelled is the same one that was in court over its work up at the airport and is the same one which seems to have issues at every job site I've ever been at around them.

If there was an issue with one site or maybe one engineering firm or maybe government project manager, you could chalk it up to some personnel conflicts. But when you realize that you seem to have issues all over the place, it's time to look in the mirror and stop blaming other governments like YG, the town of Faro, the City of Whitehorse, FNs, other contractors etc etc.

There are many contractors that do this work but only one seems to always end up in conflict with officials and locals.

Up 16 Down 3

North_of_60 on Dec 17, 2022 at 2:05 pm

Instead of spending budgeted funds on lot development, the LIBgov misspent on more vote-buying, feel-good, virtue-signaling, wokeism.

Up 27 Down 3

Leo on Dec 16, 2022 at 4:33 am

Minister Mostyn should be accountable for why he canceled phase 7-8 Whistle Bend tender which delayed development a full seaso , to only retender the exact same tender adding FN bid valuation clause which is only added competitive advantage against all Yukon companies non FN and this delay and cost for this change added $6m more to Yukon Tax payers.
Seems to be a big problem were Mostyn is doing whatever he can to full-fill FN votes at what ever cost to Yukoners.
With the high cost of building no surplus of lots available surely the Minister is showing his lack of accountability for delivery or cost to Yukoners.

Up 27 Down 2

Amber Smith on Dec 15, 2022 at 9:07 pm

Surprise, surprise. Mostyn has been caught misstating or overstating facts. Shocking.
Fun story about lot development: in 2019, YG undertook heritage, geotechnical and environmental studies on a parcel of land in Keno to create 3 lots here. All studies indicated things were good to go and Lands suggested a release date for at least 1 lot in Spring 2020. Guess what? We're still waiting. The only indication of anything having happened is flagging tape in the bush.
Fast forward to the 2022 budget where the same Minister, while under questioning about budget items in Community Services announced $404,000 for development of lots in Keno and lots in Mayo. Mayo has made great progress in developing lots and bringing them to market. Here, we have some flagging tape in the bush and all the $ spent on the necessary studies, but no release of lots. I guess Mostyn figured he'd spend the money again? Demand for lots is obviously higher in Whitehorse and the municipalities but we need lots here too. Why isn't Lands releasing those lots? What was the point of going through heritage, geotechnical and enviro studies on the parcel of land if nothing is going to happen to it?

Up 10 Down 19

Politico on Dec 15, 2022 at 5:21 pm

@ yt Yes, it's amazing how the YP can forget what they did or did not do and how fast they can change their spots when necessary.

Up 37 Down 19

yt on Dec 15, 2022 at 3:06 pm

The Conservatives are criticizing the Libs for not.......spending enough??
Are we in the Twilight Zone or what?

Up 45 Down 10

Wilf Carter on Dec 15, 2022 at 2:20 pm

This minister told people in his riding that Yukon Government had nothing to do with housing. I was standing there when he stated.

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