Rapid City's Vision Fund committee voted Monday night to move forward with a proposed expansion to the Rushmore Plaza Civic Center.
The unanimous decision takes the $150 million project a step closer to completion.
The proposal would add a new 15,000- to 18,000-seat arena to the existing structure, as well as 3,500 parking spaces in two garages.
The 10,000-seat Don Barnett Arena would then be repurposed, possibly into an IMAX theater or waiting area for the new arena.
Opponents say the project drains a large portion of the city's Vision Fund, but proponents argue the current space isn't big enough to attract today's big-name acts.
"Pepsi Center built, Xcel Center built, Fargo built, Grand Forks built, Lincoln built, Sioux Falls is building," said Civic Center manager Brian Maliske. "We are no longer on that run. "
He added the expansion will bring hundreds of millions of dollars to the city.
The plan now moves to city council for approval.