FORT SMITH -- City directors are considering building a $31.2 million indoor sports facility in Fort Smith, which is expected to have a $42.4 million annual economic output due to direct and indirect spending, according to Conventions Sports and Leisure International.
The directors heard a feasibility study presentation by Conventions Sports and Leisure International on Tuesday evening, which discussed market demand, comparable facilities in similar cities, industry trends and business models. The study cost $30,000, which was paid by a $15,000 matching grant from Arkansas Tourism, $7,500 from the city's Advertising and Promotions Commission and Convention and Visitors Bureau, and $7,500 from the city.
CSL's presentation states an indoor sports facility would address city opportunities and needs related to sports tourism or tournaments on the weekends, while also enhancing opportunities for local sports and recreation users during the week. They measured interest through interviews with stakeholders and potential user groups, and found demand for an indoor sports facility to be moderately strong to strong.
"Market research and analysis suggest that a state of the industry Indoor Sports Facility, suitable to accommodate basketball, volleyball, wrestling, pickleball, dance, cheer, martial arts, indoor soccer and off-season/supplemental training for various field sports and their related tournaments, games, practices and training activities, could address certain local and non-local market demand that is not currently being met by existing facilities in the local and regional marketplace," the presentation packet states. "In particular, volleyball, basketball, wrestling and soccer appear to be some of the most prominent sports that would represent core uses of a new Indoor Sports Facility in Fort Smith."
CSL's studies found an indoor sports facility could serve over 225,000 individuals within a 30-minute drive, and 5.9 million people within a three-hour drive; and unlike outdoor sports facilities such as baseball or soccer complexes, an indoor facility could be used year-round and accommodate a number of sports.
CSL's recommendation is to build a 120,000-square-foot facility with eight full-sized basketball courts or 16 full-sized volleyball courts, and synthetic turf for one regulation-sized field. They also suggested a minimum 35-foot ceiling so nets could drop down to separate court and turf spaces or also be used for batting cages, locker rooms and team rooms, fitness and wellness spaces, a walking track, play areas, a food court, performance and esports spaces and 900 parking spaces -- all on a site of at least 10 acres.
"Other types of projects can in certain cases be married with these types of projects," CSL Principal Bill Krueger said. "Often times they're phased in the sense of you either build the indoor facility first, but then you co-locate it with a high quality field complex of some sort, where you've got multiple fields that are tournament quality lined up. So you have a sports destination that many communities are investing lots of money into in exchange for the community good for the local residents, but importantly also for the economic impact."
Krueger said the facility would be different from holding tournaments in the Fort Smith Convention Center because the center has high costs to set up and tear down equipment, which takes time away from hosting conventions, conferences or trade shows. He said similar indoor sports facilities are the TBK Bank Sportsplex in Bettendorf, Iowa; Cape Girardeau Sportsplex in Cape Girardeau, Mo.; and the Fieldhouse USA Frisco in Frisco, Texas, which can generate $200,000 to $500,000 in profit each year, depending on the market and what sports are being used.
Krueger said CSL didn't do a specific site analysis, but suggested locations for the facility are near the soccer complex and the U.S. Marshal's Museum along the Arkansas River, Ben Geren Regional Park and Chaffee Crossing. He said if the city wants to move forward with the project, next steps would be exploring site options and funding sources.
Ward 3 Director Lavon Morton asked how the comparable cities paid for their indoor sports facilities.
Krueger said they paid through either a general obligation bond backed by credit or property taxes; revenue bonds through hospitality, visitor industry, hotel, sales, entertainment or food and beverage taxes; or the city's annual capital budget.
"We don't really see the private operator coming in with money, cash in hand, to help with the capital stack up front," he said.
At-large Director Kevin Settle suggested city administrators talk to the comparable cities and see how they funded it. He also suggested the city meet with the Boys & Girls' Club, Fort Smith School District, the University of Arkansas-Fort Smith and local sports leagues to see if they're interested in using and helping pay for the facility.
Morton said he thinks that could help in generating revenue, but he's concerned about construction costs and asking residents for a tax increase after they just renewed a 1% city sales tax last month.
Krueger said the city could also issue a request for proposal for acquisition of land or facility management, to see if there is any private sector interest in the project.
"Sports Facilities Companies, for example, they often get involved after our feasibility study," he said. "If you're going down the road, they can help you with certain financing, setting up a more detailed look at the programming and the construction costs and items like that, as it leads into having a project that you can break ground with. So those are just some of the aspects that we tend to see in terms of next steps. And we'd be happy to share our two cents along the way, if ultimately you're interested in speaking more about next steps."
Tim Jacobsen, executive director of the Advertising and Promotions Commission, said there's a "huge void" in this part of the country for this type of facility.
"So if Fort Smith doesn't do it, somebody else is going to do it," he said. "Little Rock has gone to the ballot a number of times to try to look at facilities, whether it be indoor or outdoor or both. So I think it's our job from the Convention District Bureau and the A&P to continue to look at different opportunities of economic development that can bring tourism and help our existing businesses that are here."