08/02/2012 11:56 EDT | Updated 10/02/2012 05:12 EDT

Rotary Club makes deal to buy Crown land for new housing, golf course

FORT MCMURRAY, Alta. - The Alberta government says it hopes a chronic shortage of housing in the oilsands town of Fort McMurray will be helped by a deal to sell 81 hectares of Crown land to the community's Rotary Club.

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.