TORONTO -- The Ford government is reducing the number of stations for the planned extension of the Yonge subway line and moving part of the route above ground in attempt to cut costs.

The province was initially planning to build six stations along the 8-kilometre route from Finch Station to just north of Highway 7 in Richmond Hill but a 152-page initial business case prepared by Metrolinx calls for changes to the scope of the project to address soaring costs.

The document reveals that if the province were to proceed with its initial six-stop alignment the price tag would reach $9.3 billion, exceeding the $5.6 billion budget and “significantly challenging” the business case for pursuing the project in the first place.

To reduce costs, Metrolinx is recommending that the province pare back the number of stations from six to four and have the route veer east and run above ground along an existing CN rail corridor from just south of Highway 7.

It is not immediately clear which stations would be cut as part of the revised plan but the business case suggests that only one of the three underground stations planned for Cummer Avenue, Clark Avenue and Royal Orchard Boulevard can be accommodated within the current budget.

Metrolinx also cites preliminary analysis that suggests the costs of constructing an underground station at Royal Orchard Boulevard “far outweigh the benefits.”

It says that its preferred route for the subway extension would still attract 94,100 daily riders and reduced commute times downtown by 22 minutes on average.

But it will attract fewer daily riders and leave fewer people living within a 10-minute walk of a station when compared to the other two options that were examined.

“We're so pleased to be taking this important step forward with the Yonge North Subway Extension and we're eager to get out there in the communities to share more details about how this important and much-needed project will benefit people," Metrolinx President and CEO Phil Verster said in a press release issued on Thursday morning. "We know a fast, seamless subway connection between Richmond Hill and downtown Toronto has been envisioned for a long time, and we can't wait to make that vision a reality."

The initial business case calls for underground station to be constructed at Steeles Avenue and surface level stations at Highway 7 and High Tech Road. There would then be enough money left over in the budget for one “neighbourhood station” at either Cummer Avenue, Clark Avenue or Royal Orchard Boulevard.

Once complete, the initial business case estimates that the extension will result in nearly 49,000 more people being within walking distance of rapid transit. It also estimates that there will be nearly 23,000 more jobs within walking distance of rapid transit.

“This marks a significant milestone for this major infrastructure project and a pivotal moment for our community,” Richmond Hill’s Acting Mayor Joe DiPaola said in a statement issued following the release of the initial business case. “The subway extension is a foundation piece in our bold vision for Richmond Hill Centre. It will help connect our residents and businesses easily to opportunities across the GTHA and bring new investment into Richmond Hill.”

The Yonge subway extension is part of the Ford government’s $28.5 billion plan to expand the subway network in the GTHA through four major projects.

The province, however, has only committed to spending $11.2 billion on the projects and has said that it expects the federal government to come up with 40 per cent of the total cost.