The city could approach the territorial government for more money to fund the construction of the multiplex sports centre, Mayor Ernie Bourassa said today.

In an interview, Bourassa said the city needs to look at options to reduce costs and come up with extra money to fund the construction of the multiplex, which was estimated to cost the city $24.5 million.

The $28.8-million budget, reported in Friday's Star, is the estimated entire budget of the second phase of the multiplex.

The lowest bid on the project came in at $29.9 million, including the seven-per-cent GST. It was submitted by Ketza Construction of Whitehorse in partnership with Monad Construction of B.C.

The federal government stopped charging municipalities the GST earlier this year. This brings the lowest bid down to $27.9 million.

One of the options for increasing the amount of money the city has to spend on the building for the 2007 Canada Winter Games could be asking the Yukon government for more money, Bourassa said. The territory has already agreed to put $8 million toward the project.

Other options to raise the amount available to spend on construction could be to look at debt-carrying and taking money from the city's capital reserves.

The sports facility is set to include an Olympic-size rink, NHL-size rink and a small leisure ice area along with two gymnasiums, multipurpose rooms, a running track and climbing wall. It is being constructed for the winter games.

The first phase of the multiplex, the Whitehorse Lions Aquatic Centre, opened in late 2002 at a cost of $12.3 million.

The city has a contingency of $700,000 set aside for unforeseen costs that come up during construction, Bourassa said.

He can see making changes to the design of the facility, which is planned to be built below the Mount McIntyre Recreation Centre. However, to save money, Bourassa isn't in favour of taking out any of the planned components, such as the gyms and arenas, to save costs.

He noted doing so would cut out operating revenue in future years.

'I'm looking in the long term,' he said.

He noted the city is contending with rising steel costs that impacted the bids.

Wayne Tuck, the city's manager of engineering services, said this morning administration is looking at a number of options to deal with the $3.4-million difference between the lowest bid and the amount budgeted.

City officials will then meet with council Thursday to discuss those options. That meeting will not be open to the public, Tuck said.

An administrative report on the matter will be presented at the March 15 council meeting.

'Time is of the essence,' Bourassa said of awarding the contract.

He pointed out the importance of beginning construction in time for the building to be stable for the winter.

Community Services Minister Glenn Hart was unavailable for comment this morning on a possible city request for more territorial funding.