At a meeting on Tuesday, May 14, the Camp Verde Town Council heard a presentation from the Yavapai College Regional Economic Development Center, which prepared a study on the potential economic impacts of the proposed Camp Verde rodeo arena, based on comparisons with other rodeo arenas throughout the state.
The REDC painted a rosy picture of the potential economic effects of the new arena on the town. They estimated that, assuming that the arena hosted 50 days worth of events per year, as the Camp Verde Arena Association have expressed plans to do, it could bring in an annual economic impact of $3.4 million, not only through direct payments to the arena, but indirect revenues in lodging, dining retail, gasoline, food and general merchandise due to people from outside Camp Verde coming to events. They estimated that 50 days of events would result in attendance of 25,000 people at the arena annually, which would include 21,500 from outside the region. The economic impact study projected that the arena would support 65 jobs in the area and bring in $134,000 per year in sales tax revenue.
“We looked at some other facilities within Arizona and it matched up that that’s basically what they were seeing as a portion of local and out of region visitors,” Tom Hughes, of Yavapai College, said.
After the presentation, the CVAA made their case to the council to ask for an additional $50,000 in funding, on top of the $80,000 that the council allocated in November. Based largely on the optimistic perspective from the economic impact study, the council approved the
funding in a 5-2 vote.
“If we were to do two events, that’s still $60,000 a year,” CVAA president Mary Phelps said, arguing that even without all of the most positive projections from the economic impact study, the arena would be able to make the investment worth it.
Still, the CVAA’s proposal met with significant opposition from two council members, Robin Whatley and Buck Buchanan.
“I have a real problem because these are all assumptions and, as far as I can tell, assumptions are all guesses,” Whatley said at the meeting. “So we’re pretty much just guessing or hoping that all of this is real.”
Whatley argued that, with other projects on the council agenda, such as potentially purchasing the water company, there were better uses of the town’s funding.
Buchanan expressed misgivings about the Camp Verde Arena Association itself, which he felt have been less organized and prepared than he felt was necessary to make this project work.
“I’m in support of the arena but I think you’re moving too fast in a situation that could go the other way from what you’re telling us, because of other arenas that have folded up even if they’re new,” Buchanan told the CVAA.
One issue of contention was that the CVAA still must depend on a large portion of outside fundraising even with the town funds — the total projected costs of the project amount to $488,000. Though the CVAA has secured promises of donations, as well as in-kind donations, they still have not raised most of the funds to pay for the project — just $700 in cash, according to Phelps. The CVAA pointed to an upcoming Dinner, Dance & Auction fundraiser taking place June 29 and also made the case that they would have an easier time turning commitments into donations once work was able to be started.
“No one is going to support anything without seeing movement happening,” Stacey Barker of the CVAA said. “We don’t want to get somebody involved in something that may not happen. So we’re waiting on the town to allow us to make things happen through their departments and their approvals.”
The council briefly considered postponing allocating the funds, with the town’s fiscal year completing at the end of June and worries that taking money out of the contingency fund could leave the town in financial trouble if something costly came up in the next six weeks. However, they eventually decided that giving the CVAA funding now would allow them to move forward on the project — according to Phelps, the money will be used to purchase lighting equipment, one of the largest single expenses — and that the final days of the fiscal year should hopefully be fine.
“If we have a little money to put towards a project that’s going to benefit and bring money into our community, I’m willing to do that,” Council Member Jessie Murdock said. “I want us to make those investments and if we’re sitting here and we’re scared to spend an extra $50,000, then we should be scared to spend $50,000 on any other project. I’m ready to do this.”
