City council has approved a rezoning application for the former site of the Macaulay Lodge at 2 Klondike Rd.

The zoning of the five lots making up the site has been changed from public services to comprehensive neighbourhood commercial.

On Monday evening, council also rezoned an adjacent greenbelt lot from greenbelt to comprehensive commercial.

The Yukon government, which owns the properties, had asked the city to provide the rezoning, as the government is planning to sell the land.

The rezoning comes with special modifications that state:

• gas bars are not permitted;

• supportive housing is permitted as a secondary use;

• commercial uses are not permitted above the first storey, except for home-based businesses in residential uses;

• any commercial use must be accompanied with the development of an allowable residential use.

Macaulay Lodge first opened in 1969.

Council had been asked by community groups to ensure the rezoning would provide for residential uses along with commercial uses.