The Fairbanks Daily News-Miner reports the money came from leftover funds that had already been designated toward "tourism, community development and an ice park."
Earlier this year, the borough negotiated a special permit for 2011 that would allow Ice Alaska to use Alaska Railroad Corp. land, where the ice park has hosted its event since 1995.
The railroad corporation complained during negotiations about the condition of the Ice Alaska buildings, where organizers typically house the guest artists. An inspection in October deemed the buildings unsuitable for residential purposes.
The grant by the assembly will cover the cost of accommodations.