The city of Casper stands to acquire land in a key development area if an agreement is brokered in the latest bid for a civic auditorium.

If a contract is approved by the city, the Casper City Council may purchase up to three acres of land in the Old Yellowstone District.

But even with the land, the Citizens for a Civic Auditorium group still faces several challenges. Officials from both sides stressed that progress with the performing arts center or the land purchase won't happen if a working agreement isn't approved.

According to a memo given to the council, the group needs to find another $2.5 million in pledges - assuming $7 million in promised money is fulfilled - and hopes have a $5.8 million advance from the city.

Citizens' president Ken Barbe also hopes to receive $3 million from the Wyoming Business Council in grant money and $5 million from the Amoco Reuse Joint Powers Board.

Before the Citizens can apply for the business council grant or ask for Amoco money, it wants to partner with the city.

Pleased with the city's preliminary decision to buy the Citizens land, Barbe said tomorrow would not be too soon to begin the process.

If the city decides to buy roughly $1.4 million worth of land in the Old Yellowstone District and the civic auditorium bid fails, the city will still have a use for that land, said council member Guy Padgett. The district is located between Poplar Street and downtown, and has been slated by the council for redevelopment.

"If the civic project for some reason can't go forward, then we have a parcel of land in a really attractive area of the city to develop," Padgett said. "Either the civic auditorium goes there, or we will find another project or developers for the land."

The city council has $2 million in its budget for "Urban Renewal Revolving Land Purchase," to buy and help develop land in the District.

Padgett thinks along the river or near the current downtown movie theaters are ideal locations for a performing arts center, but no area is currently under contract.

"At this point it will come down to where there is land available and what makes sense as we go forward," he said.

Operations

The Citizens may also ask the city to fund $300,000 each year in operating costs for 10 years. The group says it will reimburse the city for the $5.8 million in loan money, but won't repay the first 10 years of operating costs.

After 10 years, the Citizens hope money from a trona royalty will begin to pay for operations and reimburse the city for the $5.8 million.

The Wold Trona Royalty is a portion of the money generated from the production and sale of trona from a field in the Green River Basin. The trona has not yet been mined, Barbe said.

FMC Corp. owns the right to control the production of the trona, and the actual trona is owned by the U.S. Bureau of Land Management.

Barbe wrote that FMC Corp., "can't make a commitment to us because it depends upon when their other mining will occur and when BLM will require they mine the trona."

FMC Corp. plans to use a different method of mining, which is similar to uranium mining where a solution is pumped into the ground and brought back out to extract the mineral. Conventionally, trona is mined underground similar to coal.

This type of mining has not been used in the United States, Barbe said, but FMC Corp. and other companies are working to "perfect the process."

If the city decides to proceed with the project, and the trona royalty does not ultimately produce any royalty, there's a possibility that the city will continue to fund part of the operations of the civic auditorium from the general fund.

"We don't know how much those royalties will bring in. There is every likelihood they will come in, but to know when and to what extent that will be mined, that is the part that is a little unclear," Padgett said. "I think that's the risk we take by taking this project on."

The city will spend roughly $8.4 million this year from the general fund on operations of seven leisure services: the Casper Events Center, Municipal Golf Course, Casper Recreation Center, Casper Family Aquatics Center, the ice arena, Fort Caspar Museum and Hogadon Ski Area.

If the trona doesn't produce royalties, the city would still own the land and the facility, City Manager Tom Forslund said.

But the civic auditorium is still in the discussion phase, Forslund said. An agreement between the city and the Citizens is not yet written.

This "memorandum of understanding", while not finished, may be completed as soon as within 30 days, Forslund said. That document will outline each party's responsibility in the project. It may also dictate how quickly some of the larger financial decisions need to be made.

Padgett is excited about the possibility for a performing arts center, but said he recognizes the process is still in its early stages.

Before the city can commit, he said, the council will want to know the community supports this project.

Contact city reporter Christine Robinson at (307) 266-0639 or christine.robinson@trib.com

The Civic proposal

The financial details of a proposal that was submitted to the Casper City Council for review during a work session on June 9.

Project cost

* Construction: $18,750,000

* Land: $1,400,000

* Site preparation: $2,900,000

* Parking: $250,000

Total cost for the project: $23,300,000

Projected funding sources

* Wyoming Business Council grant: $3,000,000

* Amoco Reuse Agreement Joint Powers Board: $5,000,000

* Current Citizens for a Civic Auditorium pledges: $7,000,000

* Citizens for a Civic Auditorium funding goal: $2,500,000

Total fundraising projection: $17,500,000

Total amount needed for project: $5,800,000. Amount is what Citizens for a Civic Auditorium proposed to the city structured as a loan.

Long term operational support from the city each year for 10 years beginning in 2010: $300,000. There would be no repayment of the total $3,000,000.

The total cost for the project does not include the short-term debt to cover pledges.

* The following financial proposal was submitted to the Casper City Council for review during a work session on June 9.

Project cost

* Construction: $18,750,000

* Land: $1,400,000

* Site preparation: $2,900,000

* Parking: $250,000

Total cost for the project: $23,300,000

Projected funding sources

* Wyoming Business Council grant: $3,000,000

* Amoco Reuse Agreement Joint Powers Board: $5,000,000

* Current Citizens for a Civic Auditorium pledges: $7,000,000

* Citizens for a Civic Auditorium funding goal: $2,500,000

Total fundraising projection: $17,500,000

Total amount needed for project: $5,800,000

* That amount is what Citizens for a Civic Auditorium proposed to the city structured as a loan

Long term operational support from the city each year for 10 years beginning in 2010: $300,000

* There would be no repayment of the total $3,000,000

The total cost for the project does not include the short-term debt to cover pledges.]]->