The service club plans to develop a new residential community with housing options ranging from townhouses to single family units.
The lands adjoin property where the Rotary Club is proposing to develop a public golf course.
Mike Allen, member of the legislature for the riding, says the conditional sale is part of the government’s strategy to see more development in Fort McMurray.
He says new housing will help alleviate "the significant growth pressures" that are taking place in the community and make housing more affordable.
Dan Lemke of the Rotary Club says they are excited about the chance to "improve the quality of life in our community."
Over the next couple of months, both parties will work toward finalizing the agreement so that initial activity can begin on site as soon as possible.