The Yukon government is exploring options to develop leased residential subdivisions from first nations governments in the territory.

During a news conference at the Yukon Legislative Assembly Thursday afternoon, Energy, Mines and Resources Minister Archie Lang said members of his government have been in discussions with the Kwanlin Dun First Nation (KDFN) and the Teslin Tlingit Council (TTC) about building residential properties on settlement lands.

The properties, Lang said, would be on a leased basis as first nations are not allowed to sell their land under land claims agreements.

'The government is working in cooperation with the Teslin Tlingit Council and has identified opportunities for development of both public and (council) land for rural residential and recreational purposes. Projects could begin as early as the spring of this year,' Lang told reporters.

'A YTG open house has been scheduled in Teslin for Friday, March the 24, to look at these opportunities.

'For the first time ever in the Yukon, the public government and a first nation government are exploring opportunities for the joint development of both public and first nation land for rural residential and recreational purposes.'

Lang said the project, if it proceeded, could provide a blueprint for other projects the government could undertake in co-operation with first nations governments.

'This joint development could set the stage for similar projects, providing more planned land development throughout the Yukon

'They're the largest land holder in the Yukon outside of government ... and they're looking for a revenue stream.'

Lang also said there were discussions going on with the KDFN for possible development on its settlement lands close to Whitehorse.

'As a result of discussions between (Lang's department), the Department of Community Services and the KDFN, a work plan is being finalized that is aimed at evaluating the suitability of a planned rural residential development in the Fish Lake area,' Lang said.

KDFN Chief Mike Smith could not be reached for comment on the government's plans.

At a public workshop hosted by the Canada Mortgage and Housing Corp. on Wednesday night, John Pattimore, who works with the Ta'an Kwatch'an Council on lands management, said the Ta'an are also exploring opportunities for residential development on band lands.

'Nobody's mentioned that first nations have lands in the city,' Pattimore told the more-than 50 people attending the workshop.

'First nation land cannot be sold ... (so) lots on first nation land would have to be leased,' Pattimore said.

The band is trying to gauge how the market would consider leased residential land holdings, he added.

'This may be coming,' he said.