Long awaited road improvements in the Polo Park area are costing more than the City of Winnipeg had budgeted.

The city had planned to fix St. James Street with improvements to intersections at Ellice and St. Matthews avenues.

A report to Winnipeg city council shows the project is expected to cost an additional $3.5 million for construction and over $1.5 million more to buy needed land.

The original budget was $40 million.