UMA Engineering has been awarded the $1.2-million design contract for the new Takhini North development, following a city council vote at its regular meeting Monday night.

The vote also saw $300,000 transferred from the cancelled Industrial Road upgrade for the project.

The work in the neighbourhood will see 82 new residential units developed, along with the upgrading of roads, water and sewer service to current residents.

Local improvement charges, where benefiting property owners pay for a portion of the work, will be proposed for the existing homes.

The work will be done over two phases. The first will be the reconstruction in the existing neighbourhood, while the second will focus on services to the new single-family homes and duplexes proposed for the area.

While two proposals came forward for the design contract, UMA's was the only one to meet the technical requirements.

"The consultants are aware that the city proposes to award and complete only the design work in 2008 and the winter of 2009, and that the consultant services required for tendering and construction management and inspection would only be completed if the budget to reconstruct

Takhini North and the proposed new developments in 2009 and 2010 are approved by council during the annual budget process," reads a report that went to council prior to Monday's vote.

Along with the money coming from the Industrial Road project that didn't go ahead, money to fund the initiative is coming out of the Municipal Rural Infrastructure Fund and, it's expected, local improvement charges.

"If the majority of benefiting property owners reject the local improvement bylaw, the reconstruction portion of the project would come back to council for further consideration," reads the report.

Councillors Doug Graham and Dave Stockdale were absent from Monday's meeting.