A geohazard report on the property up for sale by the Yukon government at Fifth Avenue and Rogers Street shows the presence of a sinkhole in the middle of the site.

The study says the sinkhole was likely caused by the collapse of dirt around the site, which had previously been disturbed by development.

The study suggests the historic disturbance could have been related to the burying of old construction debris or possibly underground utilities, but it is not thought to be a naturally-occurring sinkhole.

The report also provides a recommendation for the purchaser to further investigate and remediate the condition.

“Site preparation procedures generally consist of excavation to remove uncontrolled fill, old foundations, abandoned underground utilities, and other potentially deleterious materials. These should be replaced with fill that is placed in lifts and compacted to suit site development requirements.”

Jesse Devost is the communication director with the Department of Energy, Mines and Resources.

He said this week the purchaser would be responsible to conduct the work, and should be able to develop the site in accordance with the information and recommendations provided in the report.

That document also recommends the construction of a berm along the foot of the escarpment.

In March, the government issued a request for proposals (RFP) to purchase and develop the 2.12-hectare site, whose current appraised value is $3.93 million.

In a statement in March accompanying the release of the RFP, Premier Ranj Pillai said:

“The Fifth Avenue and Rogers Street lot in Whitehorse presents an opportunity for the Yukon’s development community to bring much-needed housing solutions to the downtown core.

“I look forward to the creation of new homes for Yukoners, the related capacity building in our construction industry, and economic and employment opportunities, including for First Nations.”

Interested parties have until May 26 to apply.

The parcel is zoned mixed-use commercial, which supports a range of commercial residential uses, notes the RFP.

Multiple housing, residential care homes, supportive housing and temporary shelter services are permitted.

The opportunity for a flexible payment schedule with the successful bidder will be available based on their commitment to ensure community social benefits result from the development, the government said.