City signs with financial advising firm as arena vote looms

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RAPID CITY, S.D. -

Rapid City officials are looking into financing changes at the Rushmore Plaza Civic Center.

The city is faced with the choice of either remodeling the Don Barnett Arena for around $25 million or building a new arena entirely for around $130 million.

On Wednesday, the Rapid City Legal and Finance Committee approved an agreement with financial advising firm Dougherty and Co., which is based in Minnesota but has an office in Sioux Falls. 

According to Rapid City Finance Officer Pauline Sumption, the firm will help the city get the best deal possible on whichever decision is made.

“Depending on which plan the city proceeds with, they will help us proceed with a plan for financing that project,” Sumption said. “They're involved with looking at [requests for proposals] for underwriters. They will go through and make sure the timing is right with interest rates, because it is a volatile market a little bit right now."

Sumption also says that by hiring the firm, they will get the best interest rate possible, while staying within the city's debt limit of $225 million. The city council will vote on the arena's fate on Feb. 26. After that, a public vote is possible. DETAILS.

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