Cost estimates for the city's new fire hall have spiralled to $9 million almost double what was originally budgeted.

City manager Dennis Shewfelt said this morning cost estimates for the planned fire hall at the top of the Two Mile Hill are rising.

'We've been following the path in terms of the conceptual design, which is the stage we're at. We haven't gone into the detailed design stage, that would see the building be more than just a fire hall.

'A more detailed analysis indicates that the money we currently have identified in the budget of $5 million is going to fall short of what we want to do,' Shewfelt said.

'The estimate now is approximately $9 million.'

That $9-million estimate includes a 25 per cent contingency fund.

The latest design concept for the building includes space for the territory's Emergency Measures Organization, the fire department, a training facility, bylaw services, city computer equipment and a separate area that would serve as a water fill station.

Shewfelt said he feels it's important for people to remember that no decision has been made by council on what will be built or how much it will cost.

He said the latest $9-million estimate up from the $5 million budgeted and the $6 million identified earlier this year is largely based on the rising cost of construction and materials.

'Looking at it in more detail now and looking at construction materials and timing the fire hall building, the actual building that stores the apparatus, would be a steel construction building.

'Steel prices seem like they're never stabilizing and always increasing, and consequently that has increased the overall cost of the facility as well.

'The stick-built, or wood frame portion of the building, bringing that to meet seismic requirements, also increases the cost,' Shewfelt said.

The conceptual plan does not include details such as the location of electrical and mechanical infrastructure, he added, and there is variety of funding options that could be considered.

'Right now, there's an idea of having the building constructed and leasing it back from the contractor so we could lease it back over time.

'There's, of course, always the option of increasing the debenture borrowing,' Shewfelt said.

'The other option would be to scale back the building to see if we could come back to a lower capital cost.'

Mayor Bev Buckway said this morning she would support a $9-million emergency services centre if it served the needs of the community.

'When we start talking dollars and buildings, not just in the corporation but anywhere in the Yukon, we know with certainty that prices are escalating faster than any of us could have imagined or ever would like to see.

'That doesn't negate the fact that that is exactly what is happening.'

Buckway said the building is scheduled to include a number of environmentally-friendly building options that have come to be expected by the public, and that the city needs a safety facility.

'Indeed, the price is going up, but there's an expectation from the public to include some sustainability factors. We're going to build, we're going to include some green concepts into that building,' she said.

'When we're talking about safety, that's pretty important. That's one of the important things we provide.'

She said council is not only concerned with the cost aspects of the building but that the facility be built properly.

Coun. Dave Austin said he also feels it's time to build the fire hall complex.

'At some point, we do have to replace this thing. The longer you wait, the more expensive it's going to get,' he said.

'If we're going to do it, I think we have to get on with it.'

Coun. Dave Stockdale said while he's concerned with the cost, he believes building a new fire hall is very important.

'I am concerned that it has gone up exponentially. It was $4 million, then $6 million and now it's $9 million.

'I think it's a very, very important thing we have to do but we have to be cautious over the money.

'If we're getting value for money, then fine, we should move forward. It could be $11 million before we're done,' he said.

Council is set to meet on the fire hall issue on Friday.