Three levels of government are partnering on the development of five new residential building lots and returning services to many existing properties in Dawson City’s north end.

The north end development project will see the municipality lead the creation of new building lots, located within walking distance of downtown.

Municipal water and wastewater services will be extended to properties in the area, ensuring sustainable local services for current and future residents. This point was made in a statement Tuesday from the City of Dawson and the Yukon and federal governments.

Up to $3.4 million will be provided to the town, which will manage the project.

Recently, a milestone was achieved with the awarding of a contract for the engineering work.

Upon completion, this will encompass residential building lots and over 200 metres of freshwater lines and sewer mains, accompanied by well-designed roads and ditches.

“This joint initiative aligns with the Government of Yukon’s ongoing efforts to meet the housing demands driven by the region’s rising population,” the governments said.

“By working together, the partners aim to provide well-planned housing options that will improve the quality of life for Yukoners and enhance existing neighbourhoods.”

The federal government is contributing $2.55 million to the project.

“The development of residential lots and the extension of essential municipal services will address the housing needs within the community and bring growth to Dawson City,” said Yukon MP Brendan Hanley. He was speaking on behalf of Dominic LeBlanc, the minister of Intergovernmental Affairs, Infrastructure and Communities.

“The Government of Canada is proud to be collaborating with the Government of Yukon on this important project that will meet the growing demands for housing in the Yukon.”

The Yukon government will provide $850,000, or 25 per cent of the project costs.

“The Government of Yukon supports opportunities for municipalities, like Dawson City, to lead in the creation of new lots and the expansion of municipal services,” said Community Services Minister Richard Mostyn.

“This partnership highlights our commitment to address the pressing need for housing options in the territory and supports the sustainable growth of Dawson City.

“I would like to thank the Government of Canada for its continued support and funding flexibility for projects like this in the North.”

Dawson Mayor Bill Kendrick said the project “invests in municipal servicing that will help address long-identified environmental and public health concerns, and it will also add much needed residential lots to our community.

“The City of Dawson is happy to see this project come to fruition after a great deal of effort by multiple councils, over many years,” Kendrick added.

The federal funding comes from the Green Infrastructure Stream of the Investing in Canada Infrastructure Program.

The stream helps build greener communities by contributing to climate change preparedness, reducing greenhouse gas emissions and supporting renewable technologies.

Under the Investing in Canada plan, the federal government is investing more than $180 billion over 12 years in public transit projects, green infrastructure, social infrastructure, trade and transportation routes, and Canada’s rural and northern communities.