Minnesota, as fans of the Wild well know, is "the state of hockey." It's also a state in hock -- facing a budget deficit of $4.57 billion.

So it's a tough time for the city of St. Paul to ask the state to forgive up to $33 million in loans that were part of the deal to build the Xcel Energy Center. St. Paul is seeking to amend the deal in order to build, own and operate "the Pond," a new ice rink on the Seven Corners site adjacent to the Xcel.

"The Pond" would be a single sheet of ice housed in a 120,000-square-foot, three-level building. Seating 3,000 to 4,000 people, it would be used for youth hockey and serve as the permanent practice facility for the NHL's Wild, who would pay rent. It would also help with overflow events like high school and college hockey tournaments as well as figure skating championships. The Pond's synergy with the Xcel would advance not only Minnesota's status as the state of hockey but also St. Paul's ambition to be "Hockeytown USA."

But the project's prospects come with a cost that should make the Legislature and Gov. Pawlenty move with extreme caution. The deal to build the Xcel was partially predicated on a loan. Under the proposed arrangement, the city would continue to repay the loan over the next four years for an additional $7 million, for a total repayment of $15.2 million. Then the state would take over the approximately $33 million remaining. St. Paul would then issue bonds for the Pond's estimated $35 million to $40 million cost.

Backers claim it would create 200 construction jobs and, because the city owns the land, qualify as "shovel-ready," which is an increasingly important credential in these recession-wracked times. They also estimate the Pond would bring in an additional 250,000 people annually and generate $4 million to $6 million in new revenue a year, with some going to state coffers in the form of added sales tax generated by the economic activity. But that's far from certain, and some of this money would have been spent at rinks in other Minnesota communities. As part of "The Minnesota Events District," which comprises the Xcel, the RiverCentre Convention Center, Roy Wilkins Auditorium, the Ordway Center, the Science Museum of Minnesota and 317 on Rice Park, the Pond would be a welcome addition and continue the revitalization efforts for St. Paul's often moribund downtown. But with so many other venues available and the state strapped as at no other time in its history, forgiving a $33 million loan -- particularly when the Xcel and the Wild have been so successful -- places a heavy burden of proof on the city and the bill's authors, Sen. Dick Cohen and Rep. Tim Mahoney, both St. Paul DFLers.

Despite that burden, the Pond is a worthy idea that deserves consideration. An effort last year to forgive the loan made it to the final finance bill before being cut during budget negotiations. And even budget hawks like Pawlenty and House Minority Leader Marty Seifert have indicated they will weigh the merits of this year's bill.

The Xcel was built with the promise of loan repayment, not a grant like some other facilities. Passing the bill would "address an inequity," according to Wendy Underwood, who is lobbying for the city. But that was the deal approved and then sold to taxpayers. So the state should make sure it's getting an equal or better value, even if the deal produces a worthy addition like the Pond.