Whitehorse gives $500K tax break to Whistle Bend developer

City council has voted in favour of granting private developer Lars Hartling a tax grant of up to half a million dollars over 10 years in exchange for building 11 townhouse units in Whistle Bend.

The incentive policy was created in 2012 to encourage housing development.

Lars Hartling's company is only the second business to qualify for that grant.

He says it's essential to his plans.

"It's not a town that's got good numbers," Hartling says. "You'd have to really see rent to be twice as high or like I say, construction costs to be half the price. We're doing this because we believe in this town... But like I say, if i was a straight money guy, then I wouldn't be here doing that."

Whitehorse Mayor Dan Curtis says the project will help alleviate Whitehorse's housing shortage, but says only the Yukon government can create real change.

He reiterated his disappointment over the territory's decision to cancel a 75-unit affordable housing project in the city

"There's some businesses here that employ 40 or more people  and they're just at a crisis trying to find accommodation for some folks. So to suggest that there isn't a problem or a concern I think is misguided."

Hartling says he aims to have the units ready in three years.