The practice of certain contractors using a variety of numbered companies to buy government-developed lots to 'out-purchase' their competitors is of concern and will be reviewed, say Yukon contractors and government officials.

In an interview this morning, Wayne Cunningham, the president of the Yukon Homebuilders' Association, said he has heard concerns from smaller contractors that they are being 'out-purchased' by larger contractors.

The larger contractors are using numbered companies to buy more high-end lots than their competitors who are using just one company in the buying process.

'Some of the smaller (contractors) are upset that the larger builders are taking more of the lots,' Cunningham said.

Under the current land disposition system for homebuilding companies, individual Yukoners are given first crack at new lots through a public lottery. Contractors' names are put on a list to purchase lots not taken in the lottery. There is the expectation that each company will buy one lot at a time to a maximum of 20 lots per company.

Some contractors with more than one company are buying two or three lots per round, Cunningham added.

The policy came into effect in the fall of 2005. It calls for each company to buy only one lot per round, working down the list, so each business has an equal opportunity to purchase the more desirable lots available.

Prior to last fall's policy, contractors could buy lots on a first-come, first-served basis following the public lottery.

Under current Yukon legislation, it is not illegal for a contractor to enter more than one company's name to purchase left-over lots.

The government's policy for land disposition to contractors is set to be reviewed later this year.

Cunningham said the subject of numbered companies will be discussed at an association meeting today. A new draw system, where contractors could only put one company on the list, would likely to be put forward as a recommendation to government.

'Some builders are running two (or more) companies. Under a new draw system, that couldn't happen.'

Marc Perreault, assistant director of program delivery for the Yukon Housing Corp., confirmed this morning there have been instances where a contractor with numbered companies has purchased 'nearly double' the 20-lot maximum.

The Yukon Housing Corp. is the government organization that signs the agreement of sale with land buyers in the Yukon.

'There have been some consortiums of companies that have purchased over 30 lots,' he said. 'It's a concern that we are looking at.

'One series of companies that has exceeded the (20-lot) limit almost doubled the allowable lots for a single company,' he said.

Perreault said his organization and the Department of Energy, Mines and Resources (EMR) lands branch, which facilitates the lottery and contractors' buying systems, will work with the contractors' association to deal with the issue.

Lands branch director Lyle Henderson said this morning he too is aware of some of the concerns surrounding land purchasing among contractors but highlighted that if there was a problem, the government would work with contractors to solve it.

'We have an excellent relationship with contractors,' he said. 'We are (again) looking forward to their input.'

Each individual property, he added, required a 20-per-cent deposit, plus the GST, to be paid by the contractor.

Contractors who purchase lots must pay for and develop lots within one year.

Many Yukoners prefer to deal with contractors who could build their homes rather than doing it all themselves, Henderson said.

'That represents a significant investment.'

According to EMR, the first builder's lot policy was implemented in the early 1990s following a request from the Yukon Homebuilders' Association to access a greater number of urban residential lots than was permitted at the time.

'In October 2003, upon request of the builders, the lands branch and (Department of Community Services), Yukon Housing Corporation agreed to increase the lot purchase to 20 lots per limited company.'

'The increase in the number of lots purchased reflected the increase in the home building market and met the demand of the builders to secure inventory for their customers,' EMR information states.

The policy was last updated last fall when the contractors' bidding policy was updated.

Over the last six years, according to EMR, lots purchased by contractors were almost double the number of lots bought by individual Yukoners in the lottery process.