Council approves First National Bank naming rights for recreation center amid council and public questions over fee and signage

KILLEEN, Texas — The Killeen City Council on May 6 approved an agreement granting First National Bank of Texas naming rights to the Family Recreation Center under terms presented by staff and a consulting firm, Sportsman Solutions. The deal commits $60,000 per year for a seven-year term, with the city retaining roughly 80% of that revenue after Sportsman Solutions’ 20% commission, staff said.

Matt Murphy, who presented the item for parks and recreation, said Sportsman Solutions conducted a market assessment and recommended the naming-rights package. Under the presented deal, the sponsor will pay $60,000 per year; Sportsman Solutions would receive 20% of gross commissions and the city would retain an estimated $48,000 annually. Signage costs were estimated at $40,000; the city would pay half of that ($20,000), staff said.

Several council members and members of the public questioned the dollar amount and the publicity elements. Council Member Boyd and Council Member Segarra said the city should consider higher minimums or tighter specifications for future deals to ensure more revenue for taxpayers. Council Member Wood, who drove the parks sponsorship initiative, said the program is a new revenue stream that can be valuable but acknowledged concerns about pricing and marketing placement. Council members also asked whether the naming policy and commission split were clear and whether larger businesses would be interested if the price was higher.

Public commenters raised similar concerns: one citizen said the city had not run the naming rights to competitive bid and questioned whether $60,000 was market rate for the proposed scope of signage, in-house marketing placements and community exposure. Others asked how profits would be directed (Murphy said revenues would be deposited to the Recreation enterprise fund) and whether legacy or community recognition elements (for example, noting that Tommy Harris donated to the facility) would be respected in the signage and materials.

Staff said the agreements proposed by Sportsman Solutions would come to council for approval and that Sportsman’s work is contingent on council approval of each proposed sponsorship. The naming-rights item was included in the consent package and approved with the 6-0 consent vote.

Council members asked staff to consider whether future naming-rights offers should include a higher minimum or different commission structure, and several said they would consider the program’s first-year outcome before broader policy changes. Ending

The naming-rights agreement with First National Bank takes effect under terms presented; staff will deposit proceeds to the Recreation enterprise fund and will bring detailed signage proposals back to council for final approval when they are developed.