The Camp Verde Town Council held a work session with representatives from the Camp Verde Arena Association to discuss and provide direction to staff regarding the amended and restated lease agreement between the town and CVAA on Wednesday, Aug. 27.
The town gave a 39-page 30-day notice to the CVAA on June 25 saying if a new management agreement was not put in place, per advice of the law firm Pierce Coleman PLLC, the town could cancel the existing lease agreement on Saturday, Jan. 31, 2026.
Town Manager Miranda Fisher and Town Attorney Trish Stuhan gave an overview of the current lease and the proposed amendments. The proposed revisions are designed to address areas of ambiguity while bringing the lease into adherence with financial accountability, public access and legal compliance under Arizona law.
The main provisions include requirements for financial transparency, clarification of both parties’ responsibilities and a formalization of practices regarding town-owned equipment.
Stuhan clarified there is no current breach of agreement by CVAA, but there has been confusion over the years. In addition to the lease for the property, the town has an equipment lease for certain property that can be used at the arena. There is also a memorandum of understanding which she believes was largely superseded when they entered into the lease and was mainly a plan to help get the arena up and running.
Stuhan said they have talked with CVAA over the years with concerns over financial transparency and are trying to understand what events are being run, what attendance and ticket sales look like, what revenue is received.
“Historically, there hasn’t been a lot of understanding of how the arena operates or the amount of revenue it generates, and that is not to place any blame on CVAA,” Stuhan said. “To be clear, the existing lease did not require financial reporting.”
Gift Clause in State Law
One of the main concerns with the existing lease is it is not in compliance with updates to the Gift Clause — Article 9, Section 7 of the Arizona State Constitution — that prohibits governments from giving or subsidizing private entities without a clear public benefit in return. The Gift Clause applies because CVAA pays $1 per year to the town for lease of the property.
Stuhan said courts have interpreted this clause differently over time. In the 1980s, courts ruled if towns and cities take public funds and give it to a nonprofit, they must consider the public purpose, such as direct help for the needy or contributing to economic development. In 2021, the Arizona Supreme Court tightened down on the clause, requiring direct benefits must be quantifiable, not just indirect benefits like tax revenue for a government. A public purpose must be present, such as education, recreation or maintaining a rural lifestyle, as well as quantifiable direct benefits to taxpayers. Both the cities of Sedona and Prescott have faced Gift Clause legal challenges in the last decade.
Stuhan said there has also been a question of public access as the lease states the arena is not just for CVAA but for members of the community. Fisher said they are seeking a single document governing the entire relationship and removes ambiguity, instead of the current three documents. The town is looking to run this lease agreement through 2045 with a one-year termination provision. The current lease has a six-month termination clause. Another revision is after one year of paying $1, there is a stipulation to see if additional compensation is reasonable and holding an annual meeting to assess operational costs and revenue and how that ties into the Gift Clause.
Fisher listed some of the obligations for both parties in the amended lease, with the largest consideration being financial reporting. Each January, CVAA needs to provide information about events, attendance, site improvements, security protocols and financial data. The town would also reserve the right to audit CVAA’s records as provided by a third party. Some of the town’s obligations would include providing a secondary egress and to help with promoting events.
CVAA Response
CVAA President Mary Phelps provided an in-depth history of the association. She said they’ve had over 27,000 people visit and use their facility. She added they have put on over 64 events in 12 months all run by volunteers, and have donated over $50,000 to clubs in Camp Verde.
“There has been no breach of that lease by the Camp Verde Arena Association,” said Joe Butner, an attorney representing CVAA. “Unfortunately, the town has been in breach of that lease almost from the beginning,” citing the lack of the emergency egress. “The Gift Clause is easily satisfied by this arena because of all of the money and investment that the Camp Verde Arena Association and the sponsors and participants put into that arena.
“The fact of the matter was that we met resistance from town bureaucracy at every step along the way.”
CVAA representatives mentioned the town’s unwillingness to promote events at the arena, the loss of the Turquoise Circuit rodeo returning to Camp Verde, which they claimed was due to lack of support from the town, and claimed the town put cameras near the arena to surveil them.
“There’s no trust,” CVAA Vice President Stacey Barker said. “We do not trust you. It’s been proven time and time again. If we were going to have a partnership or work together, trust has to be found. We’ve shown you no reason not to trust us. You’ve given us plenty of reasons not to trust you.”
Mayor Marie Moore asked if CVAA was willing to work on an agreement. Butner said they do not need a new lease agreement, but want to modify the existing lease agreement. He expressed that having the equipment provisions inserted into the existing lease agreement is a bad idea, because equipment changes and breaks down but the land is static.
“There would have to be a huge substantial change from the town to Camp Verde Arena Association, not the Camp Verde Arena Association to the town,” Phelps replied. “If not, 2026 Fort Verde Days Rodeo will be at another place.”
Council Response
“I was probably one of the first supporters of the arena,” Councilwoman Jessie Murdock said. “As a government, you have to provide transparency and there is an expectation of the community members to be able to answer the transparency in which being is being asked to the council of fellow community members … I think it’s pretty selfish that the arena association would want to walk away at this point … To say ‘no,’ that you won’t be willing to work with us. Those are some pretty strong words.”
Mayor Moore said if the town was audited, they want to be able to show CVAA is giving back to the town and that can be cleared up simply by having the required documentation.
“The Town of Camp Verde has been working very hard at raising its standards, elevating itself, cleaning up its contracts and making sure that we know where our town funds are going and how they’re being utilized so that we can let our citizens know we are on the up and up,” Moore said.
After taking a break, Moore again asked if CVAA was willing to negotiate an amended or modified lease with the town.
“My client … has given me the authority… to negotiate with your council so that we can work out a modified lease agreement that satisfies the concerns of the town as well as the concerns of the Camp Verde Arena Association,” Butner said. “They have given me the authority to negotiate with your council to work out an amended lease agreement, satisfying the Gift Clause, an external audit by a third party and protections from interlopers on the arena grounds that do harm.”
Butner said he and his client do not want the restated lease, but will agree to amendments on the lease, requesting they do so in person with the town attorney and town manager. Council provided direction to staff to negotiate the agreement which will be brought back for council to review at their regular meeting on Wednesday, Nov. 5. If an agreement is not reached, the council will discuss how to move forward, such as putting in a request for proposals for another organization to run the arena.
