AUBURN — The Ingersoll Ice Arena will get $450,000 worth of work, adding bigger locker rooms and bleachers, councilors agreed Monday night.

Councilors agreed to loan the money for the work directly from city’s fund balance in the General Fund, charging the ice arena 2 percent interest for 15 years. The loan will be repaid with revenues from the arena, which functions within the city’s Recreation Department.

“What we are proposing to do tonight is to use our undesignated funds to access the arena’s own enterprise fund,” Councilor Mike Farrell said. “This is money we don’t normally have access to, and they are paying the city interest, just like they would a bank. So the taxpayers end up being the winners with this.”

Councilors turned down a plan on Oct. 3 to bond the money to pay for the arena work. At that meeting, councilors said they were skeptical about the plan and about including it in the city’s bond package. The project includes $400,000 to add a second floor with meeting spaces, a warm area for spectators to watch games and bigger locker rooms and $50,000 for new bleachers.

The arena is home ice for Auburn’s Edward Little High School, and Leavitt Area High School and the combined Gray/New Gloucester and Poland high school hockey team.

It’s also used by adult leagues and youth hockey programs. A group of 23 hockey parents and players attended Monday’s meeting Tuesday night but declined to comment. They did cheer loudly when councilors approved the interdepartment loan.

Councilors did discuss how much to loan. City Manager Glenn Aho asked for $450,000, $4,000 less than was requested at the Oct. 3 meeting. Aho said there was work under way to raise money to help pay for the work and he thought that effort could cover the $4,000.

Councilors also debated the term of the loan and the interest rate. Councilor Farrell said he favored a shorter 10-year loan with higher interest rate.

“If you go 15 years, you just end up costing more in the long run,” Farrell said.

Councilors turned down Farrell’s amendment to go with the shorter term.

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