The Rapid City Council unanimously passed a motion Tuesday to use capital improvement funds to pay for a study on whether to build a new arena at the Rushmore Plaza Civic Center.
Up to $500,000 will come out of the fund but would be repaid in 2016 by the Vision Fund.
Ward Five councilman, Brad Estes said a solid cost estimate on a new arena is crucial.
"The other to figure cost is to hire an architect, hire it drawn and put it out to bid. And then, you may find out that your architect's estimate was way off. Then you'll have a full set of plans that are absolutely worthless," said Estes.
Seventy million dollars in upgrades has been identified in order to bring the current facility up to code. One-hundred and ten million dollars is the estimated cost for a brand new arena.