The council has written off an £80,000 debt owed to taxpayers by the board of Dundee Ice Arena, The Courier has learned.
Politicians took the decision at a behind-closed-doors meeting held in the City Chambers on Monday.
The 2,300-seat ice rink is owned by the local authority, which pays an arms-length trust more than £250,000 a year to take charge of the day-to-day running.
The trust failed to file accounts with Companies House and the Office of the Scottish Charity Regulator (OSCR) before the December 31 deadline, sparking fears for the facility’s future.
On Monday, director Gary Clark offered assurances the business is sustainable but admitted there had been a “downturn in skater numbers”. Later that day, politicians held a private meeting and agreed to write off an £80,000 debt.
“Councillors were supportive of the continuation of the Ice Arena so they opted to cancel an £80,000 debt that the council was owed,” said a well-placed source.
“It was agreed unanimously, with no debate.”
A spokesman for Dundee City Council was tight-lipped on the outcome of the private meeting.
He said: “The committee resolved…that the press and public were excluded from the meeting for an item of business on the grounds that it involved the likely disclosure of exempt information.”
The council could now be about to pay out several thousand pounds on a new entrance and reception area at the Ice Arena, according to committee papers seen by The Courier.
Officials have recommended councillors approve a planning application, which will come to the development management committee on March 18.
Case officer David Rennie said: “Currently, there is an open entrance beneath an overhang on the southeast corner of the building.
“This area is to be enclosed by windows and doors. The existing reception area is to be reconfigured.”
It is hoped the changes will cut energy costs at the Ice Arena.
Mr Rennie added: “The proposed alterations will improve the energy efficiency of the building, improve the reception area for the staff and provide a more welcoming entrance area for the public.”
Dundee Ice Arena is the third-largest rink in Scotland, after the Braehead Arena and Fife Ice Arena.
It is used for curling and skating and ice hockey sides Dundee CCS Stars and Dundee Tigers play their home matches at the facility.
Ian Carstairs of Dundee Tigers has cut prices for Saturday’s Scottish National League fixture against Aberdeen Lynx.
He said: “While I appreciate that there is now no immediate risk to Dundee Ice Arena, we, as a team, feel we can do a bit more to promote one of Dundee’s best kept secrets.
“This Saturday is our final home game of the season and we are offering half-price admission, meaning that adults will pay £3 and concessions £2.
“If people wear yellow they’ll get an extra £1 off and anyone coming dressed as a Tiger will get free entry.
“We’re hoping this will offer a fun, exciting and different way for people to spend a Saturday night and give some much-needed exposure to the arena.”