Davis County staff proposes 30-year land-lease resolution for Western Sports Park, outlines valuation methods

Curtis Cope, a county staff member, presented a draft resolution and supporting analysis to the Davis County Budget Committee on May 12, 2025, proposing that the county treat the Western Sports Park land as general-fund property and receive lease payments from the tourism fund to support capital needs.

Cope said the draft ties the parcel’s history to prior bond financing and notes that the county used general-obligation bond proceeds to purchase the land. He told the committee the county-assessor’s multifamily model produces an estimated market value “closer to $23,000,000,” which works out to about $417,000 per acre for the 55.06-acre parcel. “It is reasonable and appropriate and lawful that lease payments be made from the tourism fund to the general fund for the land lease utilized exclusively for tourism related activities associated with the Western Sports Park,” Cope said, and added that “lease payments shall begin January 1 of this year and commence for a minimum of 30 years.”

Nut graf: The discussion focused on two questions the committee must decide before adopting a final resolution: what valuation methodology should determine the annual lease amount, and whether the resolution should include a fixed term or other caps that future commissions could modify. Staff sought commission direction so attorneys can finalize a defensible resolution and attachments demonstrating a rational methodology for auditors.

Most important facts and methods discussed

- Market-value approach based on assessor modeling: Cope reported assessor output that valued the 55.06-acre tract at roughly $23 million (about $417,000 per acre) if the parcel were developed under mixed-use assumptions. Cope said he used that per-acre figure in one approach to compute rent.

- Ground-rent capitalization method (income-cap approach): Using a historical five-year annual income average and a cap rate of 5.45%, Cope showed a capitalization-based lease estimate of roughly $820,000 a year. He said if annual income doubled after a major capital investment, the capitalization approach would yield about $1.6 million annually.

- Percent-of-value (market-premium) method: Citing market guidance (developers/agents and online brokerage guidance), Cope presented a higher-premium approach using 8% of fair-market value with a 2.5% annual escalation; he said that method produced an estimated annual payment in the range of about $1.8 million beginning in 2024–2025 (Cope described the resulting stream as conservative for prime land).

Committee concerns and direction

Committee members pressed on defensibility and auditability. Cope reported that he had asked Seth Oglison (local-government director, State Auditor’s Office) to review the approach and that Oglison told staff the key requirement is documentation of a rational methodology. Cope said he and County Attorney Chris Preston had conferred with the auditor’s office and that attorneys had provided edits to the draft resolution. Several commission members expressed general support for the methodology discussion and for adding attachments that document the rationale.

Term and future modification

Commissioners discussed whether to cap escalations or the ultimate payment. Multiple speakers noted that a resolution can be altered by a later commission and that a binding lease “with yourself” is not allowed; Cope said the resolution is intended to create a defensible, auditable structure rather than a permanent irrevocable obligation. The committee agreed to direct staff and counsel to draft the resolution with a 30-year initial term and language allowing later review; Cope said he will return a redline for final consideration and meet with counsel to finalize attachments.

Contextual financial connections

Cope explained how the lease stream is intended to flow to a capital account (Fund 45) to help cover construction or bond debt service for planned facilities including a justice complex. He walked through bond-size scenarios (e.g., $30 million–$40 million in bonds for operations/buildings), noted that debt service and bond term assumptions materially affect how much the lease stream needs to cover, and recommended framing the resolution so future commissions cannot readily manipulate the record without justification.

Ending: next steps

Staff will deliver a red-lined resolution and supporting attachments documenting the chosen valuation methodology, meet with county attorneys and the State Auditor’s local-government director as needed, and return the proposal to the committee. Committee members asked for the resolution to include the methodology documentation and for staff to show how lease revenue would interact with any bond debt service and with the county’s capital account (Fund 45).