The Lincoln City Council voted Monday to spend $1.2 million on studies to help voters decide next year whether to build a new arena to replace the Pershing Center.

Even though the final vote was unanimous, the council’s support didn’t come easy. That’s because city officials had proposed getting half the money from interest earnings on the $10 million stormwater bond issue voters approved in 2005.

Several council members felt it inappropriate to use the stormwater money, since arena studies weren’t on the list of projects voters approved. Normally that money would be used for additional floodplain projects or to pay down the principal and interest on the bond issue.

And while city Finance Director Don Herz said it would be permissible to use the money for floodplain studies for the arena, council members doubted it would pass muster with the public.

Councilman Jon Camp said he believes recent bond issues have failed because voters don’t trust city government with their money, and spending stormwater funds on arena studies could violate that trust.

Councilman Ken Svoboda said some people would have voted against the stormwater bond issue if they’d known some of the money would be spent on arena studies.

Monday marked the first time the council was asked to spend money on the arena project, or, as Councilwoman Robin Eschliman put it, “This is the first time you’ve come and asked us for the moola.”

City officials say studies will give voters solid data when they vote on a new arena in spring 2009. For example, the money will be used to complete about 20 percent of the arena design, so voters can have accurate cost estimates, Herz said.

Some council members also worried about spending $1.2 million on arena work before voters approve the project.

The city’s money will be more than matched by 2015 Vision, a private group of business leaders promoting the arena and nine other Lincoln economic development projects. The group is kicking in $1.65 million to help pay for arena studies and other costs.

The total $2.85 million will be used for things such as floodplain and stormwater analysis; wetlands evaluation; facilities design; soils, traffic, pedestrian, parking and other transportation studies; financing options; land appraisals and possibly small parcel purchases.

Council members repeatedly thanked 2015 Vision. The group hopes to be repaid if the project is approved by voters.

Kent Seacrest, representing 2015 Vision, urged the council to make a strong statement with its Monday vote, saying he wouldn’t be “real excited” if he had to ask 2015 Vision to pony up $1.65 million with a tepid 4-3 council vote.

“Four to 3 votes along the way will not get us the big (public) vote,” he said.

Some council members also seemed miffed that even after several years of budget cutting, officials seem to find money for pet projects. Councilman Doug Emery said the unearthing of $1.2 million “gives the appearance that budgets aren’t as tight as they appear.”

City officials proposed coming up with their share by using $500,000 in Municipal Infrastructure Redevelopment Fund dollars, $100,000 from the city’s advance acquisition fund and $600,000 in leftover interest earnings from the stormwater bond issue. MIRF money comes from cigarette tax revenue collected by the state and distributed to cities.

The money could be reimbursed to those funds if voters approve the project, Herz said.

In the end, the council voted to spend the $1.2 million but find $600,000 from other city funds, even though Herz said city officials “looked hard” for other sources and “these are all the ones we were able to find.”

The city is soliciting proposals from developers interested in building a convention hotel to accompany an arena for a project that could cost between $200 million and $300 million.

Kent Morgan, arena project coordinator for the city, said based on talks with developers, he expects more than one proposal.

The city also recently began advertising for proposals from consultants for other arena consulting work.

Reach Deena Winter at 473-2642 or dwinter@journalstar.com.