The government of Alberta said today it plans to spend C$241 million ($221 million) in the next five years to develop land for new housing and industrial uses near Fort McMurray, the site of Canada’s oil sands.

The government will spend C$166m to develop 450 acres (182 hectares) of state-owned land that will include more than 2,000 new homes and accommodate 6,500 people, Premier Ed Stelmach, leader of the ruling Conservatives, said in a statement today. The balance of the money will be used for road and utility construction for a second parcel of land adjacent to Fort McMurray, about 750 kilometers (466 miles) north of Calgary.