Downtown's Old Fire Hall has been such a smashing success that the government intends to extend its funding to the tune of $450,000.

Tourism and Culture Minister Elaine Taylor made the announcement today at the restored century-old building that's attracted thousands of visitors through its doors, and to the downtown core.

And the promise of new dollars was nearly as perfect as the glimpse of comedic flare Rick Karp offered up during the morning's media spectacle.

The Whitehorse Chamber of Commerce, according to president Karp, had tried unsuccessfully to reserve time at the Old Fire Hall.

"The Yukon Arts Centre has done a magnificent job with this facility; I just wish that we could get a booking in here. We've tried several times," Karp said.

The timing broke the chuckle barrier spilling into the next presenter, Al Cushing, the arts centre's CEO.

The experiment, as Cushing referred to it, among the government, business and arts community is working.

And Cushing indicated the chamber's chances at time inside the space had improved, now that Tourism and Culture has promised $150,000 for each of three years to keep the venue going.

"Our books are now open," said Cushing, referring to 156 more weeks of reservation possibilities.

The funding, contingent on legislative approval, is forming part of the Yukon Party government's budget-leaking exercise, which it does annually.

On Tuesday, it promised $600,000 to promote tourism in the territory and today, it dangled almost a half-million dollars in front of the arts.

But these are cheques the majority government of Premier Dennis Fentie can afford to write, secure in the knowledge the Yukon will get an additional $48 million in transfer payments from Ottawa in 2009. Territorial budgets are closing on the $1-billion mark.

As well as attracting people to the river front and downtown, the Old Fire Hall hosts film showings, live theatre and visual art displays.

Currently, Jude Wong is giving daily lunchtime dance performances and Nakai Theatre wrapped up its Pivot festival stage there last weekend.

As many will remember, the Old Fire Hall also played host to a savage debate on arts funding during the October 2008 federal election campaign. But today was not a day to discuss imaginary cuts to arts and culture - rather to revel in more funding.

According to government spokeswoman Karen Keeley, the chamber of commerce handles the money and the arts centre choreographs Old Fire Hall events.

During its first year of operation, the government provided $70,000 to the chamber while the arts centre offered booking and technical assistance.

This arrangement is set to expire in April. The new funding boost will maintain that relationship, while allowing for better marketing of events and the purchase of additional equipment.

Patrick Matheson, the arts centre's technical director who provides those services for the hall, compared the venue to a rough diamond.

"And the community is continuing to shape it," said Matheson. "As we have been working together with our partners ... we're polishing that diamond and creating more and more facets."