Two years ago, I was talking to a prominent Lincoln development attorney about the city's plans for a new arena.

He predicted the city would spend $5 million before it ever got to a vote.

I laughed at his audacity. At that point, the city hadn't spent any money that I could recall, just lots of staff time.

Two years and nearly $3 million later, I am eating my laughter.

The city won't spend $5 million, but it will spend at least $3.3 million before Election Day.

It's already spent $2.9 million on studies, engineering and designs -- and the election is more than six months away.

The city budgeted $3.3 million for arena expenses, according to city Finance Director Don Herz.

That's not counting a considerable amount of staff time by numerous city employees. For example, the city's former arena coordinator worked 40 to 50 hours per week on the arena for about the past two years.

More than half the money spent was loaned to the city by the private business group 2015 Vision. The group gave the city $1.65 million with the understanding it will be repaid if voters approve a new arena on May 11.

City officials justify the expense by saying they need solid data and answers to citizens' questions before Election Day.

Where has the money gone?

• Olsson Associates consulting engineers, infrastructure and transportation plans, $1.35 million of their $1.5 million budget.
• DLR Group, Omaha, arena design and scope, $1.2 million.
• Sinclair Hille Architects, development plan, $217,000.
• Leib Advisors of Wisconsin, economic impact study, $50,000.
• Bahr Vermeer and Haecker architects, future of Pershing Center study, $35,000.
• Farris Engineering, analysis of using energy from the District Energy Corp. for the arena, $25,000. (District Energy Corp. is a nonprofit that provides utilities to city, county and state facilities downtown.)
• Great Plains Appraisals, property appraisals, $17,000.
• $16,000 to test stability of ground for construction.
• Former Councilman Dan Marvin, project manager, $12,000 (as of Aug. 31).

Where is the money coming from?

• 2015 Vision, $1.65 million (repaid if voters approve arena).
• City, $1.2 million -- $500,000 in Municipal Infrastructure Redevelopment Funds, $100,000 from the city's advance acquisition fund and $600,000 in other city funds.
• County hotel tax revenue , $750,000.
• Railroad safety funds, $200,000.

Seacrest making money off arena, too

Lincoln attorney Kent Seacrest also has made a good deal of money off the arena project before a shovel has turned, but he is not being paid by the city.

According to IRS filings, Seacrest's law firm has earned at least $436,000 working on the proposal to build an arena in Lincoln.

He is being paid by the UNF Charitable Gift Fund, set up by the University of Nebraska Foundation in 2003 as a separate charitable organization to accommodate the wishes of donors who primarily give to the University of Nebraska. Donations to the fund are tax-deductible.

Dorothy Endacott, director of communications for the NU Foundation, said the fund was set up because a donor wanted to give the foundation his ranch, but also wanted to give a portion to a church and other charities. The fund can also be used for one-time gifts.

In recent years, Endacott said, several funds were set up to support 2015 Vision projects -- the business group championing 10 "pillar" projects they would like to see done in Lincoln. One of those funds is the West Haymarket Arena fund, funded by multiple donors interested in seeing the arena built, she said.

According to IRS records, Seacrest & Kalkowski was paid about $236,000 for legal work on the arena project in 2007 and nearly $200,000 in 2006. The Journal Star was not immediately able to obtain records for 2008 or other years, and Endacott declined to say how much Seacrest's firm has been paid in total.

She did say 2015 Vision estimates it will spend about $1 million over three years for legal, architectural, engineering and education work promoting 2015 projects, primarily the arena.

Last year the Journal Star reported Seacrest's firm also earned more than $2 million doing consulting work on the Antelope Valley Project since it began.

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