New housing for seniors and college students with families is part of the multimillion-dollar plan for construction of the athletes' village for the 2007 Canada Winter Games.

Host society president Piers McDonald explained Monday afternoon during a funding announcement for the village that 70,000 of the 100,000-square-foot village will be permanent.

Of the 70,000, he said, 40,000 square feet will become new social housing for seniors while 30,000 will be dedicated to students who require accommodations for their families while attending school.

The remaining 30,000 square feet will be built in modular-type construction methods so the buildings can be disassembled and sold off for use elsewhere in the territory, McDonald explained.

Premier Dennis Fentie and Whitehorse Mayor Ernie Bourassa laid out yesterday their respective financial commitments to ensure the city fulfills its obligation to provide a quality village for the Games.

'This is a very good example of intergovernmental co-operation,' said McDonald, who joined Fentie and Bourassa for the announcement.

'The Canada Games host society regards the construction of the athletes' village as the single most significant project before us.'

Under the proposal, the Yukon government is providing a commitment for $20.8 million in upfront financing. In exchange, the city brings forward an $8.15-million commitment.

Formal approval is still required by city council and the territorial cabinet.

Under the proposal:

ï The city will sell a portion of the old Motorways trucking property to the Yukon government for $2 million, then submit the $2 million to the host society for construction of the athletes' village;

ï The city agrees to apply under the federal Municipal Rural Infrastructure Fund for funding to complete the extension of Hamilton Boulevard to connect with Robert Service Way and the Alaska Highway in 2008. As part of the commitment, the city agrees to provide up to $3.5 million as its one-third share of the project.

The city also agrees to apply to the fund for money to complete the upgrade in 2008 of failing water and sewer infrastructure in the Takhini North subdivision. As part of that commitment, the city agrees to provide up to $2.4 million as its one-third share of the project, money the mayor said the city will recoup through the sale of new lots that will be part of the project;

ï The city agrees to write off up to $2.5 million in property taxes for the new housing and student residential facility for a period of up to 10 years. It also agrees to forgive the estimated $150,000 in various permit fees that will be required for the athletes' village.

'It's another step in making sure the 2007 Canada Winter Games are a resounding success not only for the city but the Yukon as a whole,' Fentie told the news conference.

The Games, said the premier, provide the Yukon with an unprecedented opportunity to showcase the territory and stimulate interest in visiting here for years to come.

Bourassa said that without the proposed agreement, there was the likelihood the 3,6000 athletes, coaches and managers who will arrive in two waves of 1,800 over the two-week period would have had to stay in schools.

'I am delighted to bring back something I think they (members of city council) will find acceptable,' Bourassa said of the agreement.

The mayor also pointed out the two waterfront lots being sold to the Yukon government will be developed in accordance with the city's waterfront development plan.

McDonald said he expects there will have been substantial progress on the athletes' village by the time next winter sets in.

The society could be putting work related to the project out for bids in as few as a couple of weeks, he said.

McDonald said the host society received seven or eight proposals last fall when it put out a request for proposals to build the athletes' village.

This morning, he said he will check with the host society's board to see how it wants to handle the release of information received in the proposals, such as the cost estimates for construction of the village.

'The athletes' village is a centrepiece to make everything work, so we are pleased with the outcome of these discussions,' McDonald said. 'We feel we have sufficient time to meet our obligations and put the athletes in accommodations they will remember for the rest of their life.'

McDonald noted in addition to the 3,600 athletes, coaches and manager who will arrive in Whitehorse over the two weeks, it's expected there'll be an additional 4,000 to 5,000 supporters of the Games for each of the two weeks.

There will be somewhere between 150 and 170 committees required for planning the Games, McDonald indicated.

In addition to the city and Yukon government funding for the project, the host society has budgeted $2.7 million it expects to raise from corporate Canada, though there's nothing in the bank yet.