Kingman council reviews feasibility, funding options for proposed recreation center

KINGMAN, Ariz. — The Kingman City Council on Tuesday reviewed a market feasibility update and options to pay for a proposed indoor recreation and multipurpose events center, hearing that local demand exists but that construction and operating costs will be substantial and likely require voter-approved property-tax debt or other dedicated funding.

Consultant Tyler, who presented follow-up findings from a market study produced for the city, told the council that survey and interview work showed "a lot of demand for youth sports space" and for a community "third place" while noting regional gaps in sports facilities within a one- to two-hour drive. Tyler said about 1,500 residents completed the online survey, with nearly 1,100 respondents living inside Kingman city limits.

The study outlined two building options: a dedicated indoor sports and recreation center (Option 1) and a larger multipurpose event center with a flat concrete floor for concerts and shows (Option 2). Tyler estimated construction costs at about $39 million for the sports-focused option and about $54 million for the larger multipurpose option. He said Option 2 could generate roughly $2 million in economic impact annually and about 10,000 additional attendee days and 1,600 additional room nights compared with the smaller option, but that both building types would likely need ongoing subsidies.

Deputy City Manager and Finance Director Tina Moline said the proposed recreation center is already listed in the city's five-year capital plan to be funded with general obligation bonds, which she said are repaid with secondary property tax and "will require voter approval." Moline said the city also has limited capacity to issue excise tax obligation bonds (paid from sales tax and state-shared revenue) and that staff estimated no more than about $10 million of such excise-tax-backed debt would be prudent without weakening the city's fund balance.

Moline said the city has already forecasted recurring operating support in its budget and that staff's current appropriation for a facility's net operating cost is about $525,000 to $610,000 annually. She provided consultant estimates that a community-focused recreation center could produce a net annual operating deficit of about $430,000 to $575,000 after revenues, while a larger multipurpose facility's deficit could range about $660,000 to $760,000.

Council members discussed potential sites highlighted in the study: the Kingman Crossing city-owned parcel, a site near Centennial Park (county-owned), and the Mohave County Fairgrounds. Several council members said Centennial Park is centrally located and easy to find, while others cautioned that nearby roads such as Stockton Hill and Airway already become congested during large events. Council Member Walker and others noted Kingman Crossing could be an anchor for future development but said access improvements, notably the Flying Fortress interchange and connector roads, are a prerequisite to relying on that site for regional events.

The council and staff also discussed related capital projects that could be combined with a recreation bond, including completing Sunbelt Park Phase 2 and replacing the golf course irrigation system. Moline said golf-course irrigation and clubhouse renovations could total about $10 million (with irrigation alone described as roughly $8 million). She warned that combining multiple expensive projects on one ballot measure risks defeat and recommended careful public outreach.

City Manager Tim Walsh and Moline recommended surveying residents before placing a bond measure on a ballot. Walsh said the city has worked previously with HighGround Research and that the last HighGround survey cost about $15,000; he said that the survey approach could gauge voter support for various combinations of projects and inform whether to pursue a single geobond measure or separate questions. Vice Mayor Samuley and other council members expressed support for using a geobond and for conducting the public survey. If the council pursues a geobond, staff said timing would require preparing materials in early 2026 to place a measure on the November 2026 ballot.

On Sunbelt Park, city staff reported the delivery team has been selected and that initial phases (drainage, playground, splash pad and turf) could begin soon. The city expects the first phase to be substantially underway within roughly two years, and staff said grant and sponsor opportunities, including discussions with BNSF for park sponsorship, are active.

Council gave staff direction to solicit a public-opinion survey (HighGround or equivalent) to test support for a geobond and for different project combinations and locations, and to return to council with results and recommended next steps. No formal motion or vote on a funding measure was taken at the meeting.

For reference, the council opened the meeting noting the possibility of discussing a legal executive session under ARS 38-431.03(A)(3) but did not enter one during the substantive agenda item on the recreation study.

The meeting adjourned after staff said it would proceed to solicit the survey and return with findings to council.