City council has been asked to contribute $163,000 to help fund the construction of a new ski chalet at Mt. Sima.

At their meeting Monday evening, members of city council heard from the Great Northern Ski Society. The group requested the extra money to cover the costs of the new Mt. Sima ski chalet, which is facing rising budget commitments.

The additional funds would involve an amendment to a Municipal Rural Infrastructure Fund application. That initiative consists of a one-third municipal, one-third territorial and one-third federal funding contribution.

According to council documents and the ski society, the addition of several items to the project and rising labour and material costs have caused the budget to shoot up by $489,000.

'Several items had been left out of the budget in order to keep the tenders as low as possible,' council documents state. 'When these other items are included, the total project cost is now $1,735,000. A difference of $489,000.'

The $163,000-request represents the city's one-third of the funding application amendment.

The city's original one-third contribution to the project was provided by the ski society, which raised the money through fund-raising initiatives and in-kind contributions.

Speaking to members of council, Dan Boyd, representing the ski society, said it would be unlikely the group could again fund-raise the city's additional portion of the project and is seeking a cash contribution from the City of Whitehorse.

'We're asking the city for help,' said Boyd, a former city councillor.

Boyd said since the original figures for the ski chalet were penned in late 2004, there have been dramatic cost increases in the construction industry.

'Construction costs have risen dramatically (since 2004), by at least 30 per cent.'

Labour shortages and the cost of materials have also seen dramatic boosts over the past few years, Boyd added.

Showing their intent to support the request with a show of hands, members of council indicated they intend to approve the extra money as requested at their regular meeting of council next week.

Last night's meeting was a committee meeting, where council receives information but is not able to vote on issues.

If funding is received, according to the ski society, the ski chalet will be open for this year's ski season and for the 2007 Canada Winter Games.