The Yukon Territorial Government (YTG) will invest $60,000 on an arts and heritage village development plan for the city's waterfront.

In a press release this morning, YTG Tourism and Culture Minister Elaine Taylor announced the government would be spending the money to come up with a development vision for the foot of Main Street.

'The arts and business communities in Whitehorse have presented government with a compelling vision of what could be developed on government owned land at the foot on Main Street,' Taylor said.

'Together with the planned development of the Kwanlin Dun First Nation Cultural/Heritage Centre and the $19 million investment under the Canadian Strategic Infrastructure Fund, this initiative will provide yet another critical component in the long-awaited development of the Whitehorse waterfront,' she added.

The $60,000 fund, allocated by the Department of Economic Development, will be managed by the Artspace North Society and the steering committee will be chaired by the Whitehorse Chamber of Commerce.

The Yukon government will also undertake a consultation process on a usage policy for the five heritage buildings owned by government along the Whitehorse waterfront.

'We are very pleased to partner with Artspace North and government on this plan. It's a great opportunity for all parties to work together. First Nations, the city, the business community and the cultural sector all share interests in this development designed to enhance visitation to our territory and contribute to economic growth,' chamber president Rick Karp said.

Mayor Ernie Bourassa said while there may be some different opinions on the plan, he felt waterfront development would be positive for the city.

'I think it depends on who you talk to, personally I support the concept,' Bourassa said this morning.

He said there has been consultation from the Yukon government on the plan and there was a meeting between the two governments on Wednesday about it.