Prescott City outlines possible uses for $15.3 million state allocation for rodeo fairgrounds; residents and legal experts urge lease, gift-clause caution

At the Oct. 14, 2025 Prescott City Council study session, the City Attorney read the legislative language governing a $15,300,000 state appropriation (cited in the presentation as Senate Bill 1735 referencing Laws 2023, chapter 133, section 118, paragraph 2). The attorney read the statute's scope: monies are to "improve and refurbish the rodeo grounds owned by the city" and be spent to promote year-round use for rodeo and related events, including landscaping, drainage, water and sewer infrastructure, upgrades to the main-arena sound system and bleacher seating, construction of new restroom facilities to accommodate large crowds and "other site improvements that support the economic and tourism activity generated by the year round use of the rodeo grounds."

Staff presented a list of projects that they said fall within that legislative language, with very preliminary cost ranges: underground utilities (water, sewer, drainage) estimated at $8'$10 million; a new main-arena sound system estimated at $500,000'$600,000; replacement of seating components and railings at $300,000'$400,000; and a new restroom building estimated at $1 million to $1.5 million. Staff noted those are rough estimates, that master-plan work will continue and that formal scopes and bids will be required before contracts return to council.

Project staff said smaller items could be completed sooner. Examples listed included emergency-lighting battery backup, HVAC upgrades for event buildings, a new announcer stand and associated suite seating, and platform work for a rodeo statue; staff estimated the aggregate of the first set of items would be roughly $11'$13.5 million and warned that the $15.3 million appropriation can be quickly consumed by infrastructure items.

Council members discussed sequencing and phasing. Staff estimated some smaller projects could be bid and return to council within 60'90 days, while major water and sewer infrastructure work would take longer because it requires engineering scope of work and alignment with the master plan; staff estimated 4'5 months to bring a design contract back to council for the larger utility work. Staff said they expect to set aside contingency and to bring clearly scoped contracts back for council approval.

Public comment included rodeo supporters, users of fairground buildings and residents. Susan Davidson (Prescott Frontier Days board) and Rex Henshall (vice president, Prescott Frontier Days; architect/land planner) urged moving quickly on items that would benefit the 2026 rodeo, including a new sound system, and said sound testing and plans have been done. Several speakers from Prescott Frontier Days described building needs including HVAC breakout and repairs to fair buildings.

Other speakers raised legal and process concerns. Ralph Hess and attorney Howard Mechanic argued the city's current lease with Prescott Frontier Days (PFD) and the terms of PFD's occupancy raise gift-clause questions under the Arizona Constitution. Hess said the existing lease grants PFD rights and that spending public funds that primarily benefit PFD could be an unconstitutional gift; he urged renegotiation of a new lease before expenditures. Deb Thalassidis requested clarity on the state's disbursement of funds, the city's receipt/appropriation process, and whether the master plan can be funded by the state appropriation (staff said the appropriation's language identifies certain allowable uses and that master-plan work is a separate, ongoing contract).

After discussion council members expressed support for moving forward on some near-term items that would visibly improve safety and attendee experience: a new main-arena sound system, replacement of seating components and railings where safe to do so, restroom improvements or scoped designs, and emergency-lighting backups. Council also indicated an intent to set aside funding for neighborhood buffering (fencing/landscaping along perimeter streets) though timing will be coordinated with master-plan work. Staff said they would prepare scopes, bid documents and contracts and return to council for formal approvals; they emphasized the master plan work must inform large, costly utility relocations to avoid duplicate effort.

Speakers, including legal commenters, asked the city attorney to confirm compliance with state gift-clause requirements and for a clear statement about when the state money will be received and how it will be tracked; staff said they would follow the standard contracting process and bring scopes and contracts back to council for approval.

The council paused the study session and planned to reconvene for the voting meeting scheduled later the same day.