The Yukon government has signed a $2.5-million loan agreement with the Kwanlin Dün First Nation’s (KDFN’s) arm’s-length development corporation Chu Níikwän Limited Partnership (CNLP), for a new residential land development project in Copper Ridge West.

The project is expected to create more than 150 lots for single-detached homes and townhomes, the government said Monday.

CNLP intends to sell its leasehold interest to the public at market rates.

The Copper Ridge West project marks the first large-scale housing development project on First Nations settlement land in the Yukon.

“It is a historic achievement that will help unlock the economic benefits of First Nation final and self-government agreements, and address Whitehorse’s housing shortage,” the government said in a statement.

The Yukon Housing Corp. (YHC) is administering the loan through its Developer Build Loan Program, which was recently expanded to include financing for residential land development in addition to residential construction projects. The program is designed to support more private and First Nations initiatives.

The loan agreement with CNLP is for Phase 1 of the Copper Ridge West project, expected to begin in the spring 2023.

CNLP may be seeking additional loans for Phase 2 of the project.

The total development cost for the project is estimated at $19.3 million.

“Our partnership with Chu Níikwän is a critical and positive step forward for First Nations and the Yukon government in addressing a shared interest in increasing housing supply in the Yukon,” said Ranj Pillai, the minister responsible for the YHC.

“We know we need to support more land development projects to accommodate our growing population while also providing exciting new business opportunities for First Nations

“Together, we are working together on building a future that provides all Yukoners with the opportunity to have a home that is adequate, suitable and affordable.”

KDFN Chief Doris Bill added, “Strong partnerships are the foundation of successful projects.

“As Kwanlin Dün First Nation’s development corporation, Chu Níikwän is continuing to build on past success and realize the economic potential of our final and self-government agreements. This project will make more residential lots available for Kwanlin Dün First Nation’s Citizens and for Yukoners.”

Chu Níikwän LP CEO Rick O’Brien called the plan a “historic intergovernmental residential project (that) lays the groundwork for much-needed, market-friendly housing solutions on Kwanlin Dün First Nation settlement land in the City of Whitehorse.

“Finding a new way to work together represented many real challenges and would not have been possible without unprecedented co-operation from all parties.

“This development provides a solid framework for other Yukon First Nations to pursue and build upon, and I am very proud to be a part of it.”

Apart from the Yukon government, First Nations are the largest land owners in the Yukon.

Settlement land owned by the KDFN and Ta’an Kwäch’än Council covers about 10 per cent of the total land area in Whitehorse.

“The Copper Ridge West project is indicative of a broader shift in the Yukon’s land development industry, where First Nations and private sector landowners are becoming increasingly involved in large-scale land development projects,” the government said.

In recent years, the KDFN has taken critical steps to prepare to develop and lease settlement land for economic opportunities.

To date, the KDFN is the only First Nation with some settlement land titled in the Yukon’s Land Titles Office, providing certainty of exclusive possession of that land for the duration of the lease.

In September, the YHC acquired the legal authority to expand its Developer Build Loan Program to support private and First Nations residential land development projects in the Yukon.