The city may contribute $5.5 million toward building a civic auditorium if the Casper City Council approves an agreement.

According to a memorandum of understanding, the money will be repaid by royalties from a possible trona mine.

The city council will discuss the agreement that outlines a partnership between the Citizens for a Civic Auditorium and the city today in a work session.

"It's a very complex arrangement," said Assistant City Manager Linda Witko. "I think a lot of it depends on a good faith effort on both sides."

The council preliminarily agreed to purchase three acres of land in the Old Yellowstone District, an area near downtown slated for redevelopment. If the memorandum is approved, city officials may begin looking for and buying the land.

But, before any more money is invested to build a possible 1,000-seat performing arts center, Witko said several other elements must be in place.

Those four portions require that:

* The city must receive confirmation that the Amoco Reuse Agreement Joint Powers Board will give $5 million toward the project.

* At least $1.5 million must be confirmed by the Wyoming Business Council in Business Ready Community grants.

* The Citizens must have $9.5 million in cash deposits and/or written pledges.

* The city must have purchased or placed land under an option.

The city's possible contribution of $5.5 million includes roughly $1.4 million for the land, roughly $2.9 million for the excavating work, and roughly $1.25 million for site preparation.

Once the trona royalty comes to fruition, the city would be repaid over time by 30 percent of the profits.

The Wold trona royalty is 1 percent 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, according to Citizens President Ken Barbe.

If at any point during the construction, the Citizens can't make the required payments to the city because, for example, it doesn't collect all of the pledges, the Citizens will assign all of the trona rights to the city.

The city will then use the trona royalties, if and when production begins, to pay for the project.

Barbe said the nonprofit has $7 million in signed pledges and roughly $500,000 in the bank for the project.

The pledges are legally binding, he said, which leaves the Citizens with $2 million left to raise.

The agreement also requires the city spend $300,000 each year for 10 years for operations costs to the facility. This money would not be repaid.

If either the city or the Citizens are not able to meet one or more of the conditions in the memorandum or the costs to the city exceed the estimated figures, either party can void the agreement.

The two groups have not decided on land in the Old Yellowstone District. Barbe said the city will not condemn property in the area for the auditorium, rather it will purchase land that is willingly for sale.

If the memorandum is approved, Barbe doesn't know when the city will purchase the land but hopes it will be soon.

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

NewsTracker

Last we knew: The city preliminarily agreed to purchase three acres of land in the Old Yellowstone District for a possible civic auditorium.

The latest: The city and the Citizens for a Civic Auditorium wrote a memorandum of understanding outlining roles for each entity. In the agreement, the city would pay $5.5 million for the project, which would be repaid in the future.

What's next: The Casper City Council will discuss the memorandum in its meeting today. If the council preliminarily passes the resolution, it will go before the council for one formal vote.