The multi-million dollar upgrades to FEC, in addition to the Denton-Cooley Pavillion not too long ago will preclude any arenas on campus despite how much I'd like to see it.
A better and more likely alternative in the name of speculation would be to completely retrofit Gregory Gym with additional expansion, arena-only status as an on-campus option. From there you could basically just relocate the rec center services to the actual Rec Center area or a separate building.
That would be a pretty freakin sweet on-campus experience.
