WATERTOWN, S.D. (Dakota News Now) – The Watertown City Council has voted to borrow another $10 million to construct a new two-sheet ice arena.

Monday’s decision at a special council meeting means the city has now bonded $30 million for the project, and they’ve pledged to use another $5 million in cash reserves.

A private fundraising group has raised another $8 million.

Mayor Ried Holien says the bonds will be paid off with sales tax revenue and can be looked at as a loan, and not long-term tax debt.

“It’s best to look at it, as city manager Mac explained it, as a bridge loan. We already have $8 Million pledged in donations, I know of at least one huge donation likely coming, and the word is that the enthusiasm around the project has been re-invigorated after the presentation last Thursday, so more money is coming in,” said Holien. “So this $10 Million bond will be paid back by the donations.”

Groundbreaking on the project is expected next month, with an opening in late 2023 or early 2024.