A presentation to the Fort Smith Board of Directors on Tuesday (Feb. 25) indicates that an indoor sports facility could not only support itself with revenues within two years, but could generate $1 million in annual sales tax revenue.

The Fort Smith Advertising and Promotion Commission engaged with Huddle Up Group and Synergy Sports to complete a sports tourism strategic plan and further review or expand upon the Conventions, Sports & LeisureStudy on the indoor sports facility that was completed in 2022.

Huddle Up Group presented its high-level strategy for developing sports tourism in the city Tuesday night, and Synergy Sports presented its findings and potential funding pathway for an indoor sports facility to be built with private funds through a public-private partnership.

Jon Schmieder with the Huddle Up Group, said they looked at four main areas – facilities, destination structure, organization structure and event history – to determine how sports tourism works in Fort Smith. The city had a score that was “okay,” but not great when it comes to sports tourism. But that news just means there is room for growth, Schmieder said.

The keys to improve include enhancing human capital, continuing to build community relationship bridges and improving marketing presence. Another recommendation is developing an indoor sports facility. If the facility could draw a minimum of 11 new state, regional and national tournaments a year to the city, it could mean more than 20,500 tournament attendees, nearly $4.5 million in direct visitor spending, more than 3,500 hotel room nights, close to $150,000 in generated hotel lodging taxes, $410,000 in sales tax collection, and $560,000 in total sports tourism related taxes, Schmieder said.

Jason Boudrie, owner of Synergy Sports, presented an idea for a 120,000-square-foot indoor sports facility that would include eight basketball courts that could convert into 16 volleyball courts, 32 pickleball courts or 32 Futsal courts. The space would also be able to accommodate badminton, archery, wrestling and other sports.

The proposal says that all future events in the facility would be new-to-Fort Smith events, nothing would not take away from other event locations, except for the Battle of the Fort volleyball tournament held at the Fort Smith Convention Center.

While a larger facility could be built, more courts would not increase the number of events that could be recruited, Boudrie said.

“The reason why this works is because we are building what we need,” said Ashleigh Bachert, executive director of the Fort Smith Convention and Visitors Bureau. “It doesn’t make sense to build indoor soccer fields with turf that is not needed. If we want economics to work, we have to build what will work.”

The location presented in the proposal is directly behind Home2 Suites at 7400 Phoenix Ave. Bachert said while that is the initial proposed location, everything is in the early planning stages, and stressed that the city is not seeking new taxes or upfront funding from the city. The property is owned by the Fort Smith Regional Airport and would need to be leased. No discussions have happened yet with the airport, she said. Boudrie said there are five or six optional sites.

The maximum budget for the construction cost would be $29 million. The complex would be developed as a private development with the city backing the facility, Boudrie said.

Synergy Sports would find investors to build and run the facility and the city or the Advertising and Promotion Commission (A&P) would make lease payments and collect any profits from the revenues, Bachert said.

“These projects can pay their operating expenses. Where they need help (from the city) is in helping subsidize the lease payment,” Boudrie said.

The model indicates that the project will require subsidies from the city for the first couple of years. That subsidy would come to just under $500,000, according to the initial estimates.

The facility would generate a positive cash flow and a profit within the first few years of operation, according to the model. Operating revenue will be used to pay operating expenses and debt until the building is paid off, Boudrie said.

The proposal shows that in the first year, the facility and the events held in it would have a total economic impact of $37.694 million. That amount grows to $49.473 million in year two and $64.934 million in year three. It estimates $2.248 million in total accumulated state sales tax in the first year.

The Board of Directors would have to agree to such a proposal. Because the facility would be structured as a lease, future boards would have to renew the lease annually for 29 years until the building is paid off and owned by the city. If they chose not, the building investor would take over the facility and keep any revenues.

“We are not asking for cash, just asking for approval to continue moving down the line,” Bachert said.

She said they are asking the board for a memo of understanding in order to look more into the project to see what needs to be done, who would be the private partnership, and how it all needs to be handled. Bachert said they would bring a fully vetted plan to the board later if that permission is granted.

The board agreed to put the matter on the agenda for the March 18 board meeting.

The ideal timeline for the project would have a groundbreaking in December or January with construction taking around 14 months, meaning the new facility could open in spring 2027.

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