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USU Extension: Kaysville arena is heavily used but not yet breaking even; officials pitch donations and naming rights

Davis County Budget Committee · October 1, 2024
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Summary

Extension staff told the Davis County Budget Committee the new Kaysville arena is popular and heavily booked but running a shortfall; revenue to date was about $40,000 and officials said they plan cost‑control steps and to seek donations or naming rights to close operating gaps.

Extension officials told the Davis County Budget Committee on Oct. 1 that the Kaysville arena has become a well‑used community facility but is not yet financially self‑sustaining.

"It is booked all the time," Justin Smith said, and he reported revenue as of Sept. 1 of roughly $40,000. Smith told commissioners the arena has been popular for open rides, clubs, team roping and 4‑H activities, but early utility bills and labor costs have put pressure on operations. He said staff locked thermostats and took other measures to rein in utility expenses.

Smith said the county covers a portion of arena operations and maintenance (O&M) for a set period tied to the facility agreement; the presenter noted the county’s O&M contribution applies for the first 15 years but did not provide the exact annual county amount during the meeting. Smith said Extension is pursuing increased donations and named‑donor endowments to help pay long‑term O&M and that naming‑rights agreements could be structured to produce an endowment to fund operations.

"We'd like to have someone have naming rights for the arena where they would donate a million, 2 million dollars and then we put it into an endowment and then use the interest off that endowment to pay for a lot of the O&M for the building," Smith said. Commissioners and presenters discussed balancing community uses versus higher‑revenue special events and the challenge of reserving prime rental dates for paid events while maintaining access for community groups.

No formal action to alter county funding was taken during the presentation. Extension staff offered to provide additional revenue projections and the county requested follow‑up financial details to evaluate how the facility’s operating gap might be closed.

Next step: Extension will supply requested financial breakdowns and projections to county staff as part of the budget review process.