The Tacoma City Council agreed unanimously Tuesday to lend the Tacoma Dome $2.7 million for new artificial turf and a grid system that will allow the 23,000-seat arena to be scaled down to a 5,000- to 8,000-seat theater.

The action came after voters twice failed to pass a $45 million bond measure to fund a complete makeover of the Tacoma landmark.

Dome Director Mike Combs said the improvements will help the facility attract more sporting events and concerts.

The new turf will cost nearly $826,000. It will replace the hand-me-down Kingdome turf that’s been in Tacoma since 1992.

Replacing the old turf was part of the discussion when Dome officials recently negotiated an agreement with the Washington Interscholastic Activities Association to keep the state high school football championship in the building through 2015. The contract is contingent upon the Dome installing new turf before this year’s championship games.

Officials also hope it will attract college football and soccer to the Dome.

Combs said he planned to talk with the University of Puget Sound and Pacific Lutheran University once it’s installed, for instance. He also noted that the NCAA held its soccer championship at the Dome in 1988.

Sports Construction Group LLC is expected to receive a contract to supply the PureGrass synthetic portable turf system. It is expected to arrive in Tacoma in mid-August and be ready for use by September, Combs said.

The rest of the loan will go toward construction of a grid system in the Dome ceiling that will allow the cavernous building to be sectioned off for smaller concerts.

Dome officials have complained for years that changes in the concert industry in favor of smaller venues have made it harder for them to attract performers.

By adding a smaller theater within the Dome, officials estimated they will be able to attract at least 12 more shows per year and bring in more than $500,000 in additional revenue.

Officials said they might generate other new revenue by selling naming rights to the smaller theater configuration, something that other venues have done throughout the country.

The equipment for the theater configuration is expected to be installed by the first quarter of next year, Combs said.

The city’s loan will come from the general fund. It is to be repaid in three years at 5 percent interest. Operating revenue from the Dome, including additional revenue expected from the improvements, will be used to make the payments.

Finance Director Steve Marcotte said he is satisfied that it’s a safe loan, adding that the Dome’s $2.5 million reserve is added security.

Tony Anderson, past president of the Tacoma Athletic Commission, urged the council to approve the loan, saying the Dome provides important economic and civic benefits to the city.

“It’s the cornerstone of the renaissance of the community,” Anderson said. “Make it the jewel it used to be.”

A private fundraising effort to replace the turf will continue despite the council’s vote, Anderson said. Donors will likely end up buying naming rights to the field, he said. Any money it generates will allow the $825,000 to be spent on other improvements to the Dome, he said.

Stan Naccarato, a longtime civic booster who helped lead the bond campaign to build the Dome, told council members they need to approve the loan to ensure that young athletes have a warm, dry place to play.

The Dome performed well financially during the late 1990s and early 2000s, but struggled since 2003. It’s on pace to break even this year due to some “belt-tightening” and “new blood” working at the facility, Combs said. Upcoming Dixie Chicks and American Idol concert tickets are both selling well, he added.

Tacoma Dome loan

How much: $2.7 million

What it buys: New artificial turf and a grid system for the Dome ceiling that will allow the building to be scaled down for smaller concerts.

Where the money comes from: The city’s general fund

Terms of the loan: Three years, 5 percent interest

How it will be repaid: From Dome revenues, including additional revenue expected from the improvements

Jason Hagey: 253-597-8542

jason.hagey@thenewstribune.com