HIDALGO — The city is planning to use a federal loan to purchase the State Farm Arena to refinance the remaining debt in order to save the city some money.

The city will use an $11.4 million dollar loan from the Department of Agriculture to assume ownership of the arena. The 40 year fixed rate of the 3.75% on the loan is considerably cheaper than the current debt service on the arena, whose construction was financed by multiple sources.