The federal government announced Monday through Whitehorse city council that it has budgeted $2 million for expropriation of land and fencing and rehabilitation of the city's clay bank escarpment below the airport.

In the next three years, some 130 properties below the bank will be expropriated and a chain link fence will be erected for protection against mud and snow slides.

New Indian Affairs and Northern Development Minister Judd Buchannan announced that the Treasury Board has given approval in principle to the plan.

Subject to territorial approval, $800,000 will arrive in the 1975-76 budget year and $600,000 will be used to relieve the problem in 1976-77 and 1977-78.

City council made the announcement public at its regular meeting Monday night, and Mayor Paul Lucier remarked, "we've been a long time waiting for that one - but they've finally come through with a pretty nice deal."

The city now plans to ask the territorial government to prepare the expropriation order with the next few days. City manager Walt Lengerke said appraisals will follow to determine a fair market value of each property which ratepayers in the affected areas will be paid.

Lengerke said no definite timetable for evacuation has yet been made, but some residents can expect to served with the notices next year.

The $2 million will be voted into annual DIAND estimates, a federal government press release stated, and will be subject to five conditions.

The city must establish the boundaries of rehabilitation, prohibit further development of construction within that zone, purchase the properties own the properties and assume responsibility for the clearance and restoration of the properties and for construction and maintenance of the fence at the bottom of the escarpment.

Buchanan was quoted as saying, "The escarpment is a very real threat to lives and property. Buildings have been damaged by slides and mudflow. A major slide could possible mean a loss of life and could seriously damage or demolish many buildings.

It is evident some space is needed at the foot of the escarpment to absorb the effects of future slides and permit a stabilization of the periodic mudflows."

"Residents in the area will probably be allowed to reside at present locations until such times the expropriation is fully completed; however properties will be vacated as some owners wish to exercise their rights under the expropriation order."

The city solicitor is drafting a by-law to legalize coming city actions.

Commissioner James Smith wrote to Mayor Paul Lucier saying, "I trust that this approval will allow the City of Whitehorse to take an active approach to solving this long outstanding problem."

Lengerke said the city could start work next year if large sections of land have been expropriated by then.