City staff presented options on Oct. 14 for spending a $15,300,000 state appropriation earmarked for improvements at the Prescott Rodeo Fairgrounds and asked the council for direction on which projects to prioritize. The presentation and public comment produced questions about scope, sequencing and whether the city should renegotiate the rodeo operator's lease before funding improvements.

What the state law says: The city attorney read the appropriation language from Senate Bill 1735 (referencing Laws 2023, chapter 133, section 118, paragraph 2) and said the funds "shall be promptly spent to promote use of the rodeo grounds, including landscaping, hardscaping, drainage, and the replacement improvement and increased capacity of aging water and sewer infrastructure; for upgrades to the main arena sound system and bleacher seating; for construction of new restroom facilities to accommodate large crowds during events; and for other site improvements that support the economic and tourism activity generated by the year-round use of the rodeo grounds." (Staff noted the state auditor general will monitor use.)

Projects and rough estimates: Staff presented a prioritized list with rough cost ranges: underground utilities (water, sewer, drainage) estimated at $8
0 million; a new sound system $500,00000,000; replace seating and railings $300,00000,000; and a new restroom building $1.0
.5 million. Staff emphasized the totals could be quickly consumed by infrastructure items and that a master plan and full scopes would be needed before construction.

Timing and scope concerns: Staff warned that major utility work requires engineering, site assessment and master-plan coordination and estimated 4 months to have an engineering contract back to council for larger utility projects. For smaller work (announcer stand, sound system, emergency lighting and some HVAC), staff said they could likely return with contracts in 60 to 90 days and that some items could be completed before Rodeo 2026.

Council direction and priorities: Several council members said they supported proceeding with items that could be done ahead of the 2026 rodeo'notably a modern arena sound system, replacement seats and safety railings and emergency lighting. The mayor asked staff to keep contingency and sequencing in mind and several councilmembers urged careful phasing to avoid tearing up recently completed work.

Public comment and legal concerns: Members of the public and rodeo stakeholders addressed the council. Prescott Frontier Days board members supported rapid progress but urged careful sequencing. Several speakers asked for a new or clarified lease with Prescott Frontier Days (PFD) before large public expenditures. Attorney and resident Ralph Hess argued repeatedly that the city's current lease with PFD "effectively pays no rent" and "violates the state's constitution's gift clause," and he urged the council not to spend public funds until a new lease is negotiated. Other residents asked that improvements be focused on the historic rodeo event and neighborhood buffering and that feasibility and business-plan work be completed before large capital work.

Staff process and constraints: City staff said the master plan work (underway with a consultant) and the state appropriation are separate: the appropriation defines eligible items, but the master plan will help determine final layout and phasing. Staff said they intend to award engineering and design contracts to define scope and then return to council with bids and contracts for approval; they also said they would set aside some funding for neighborhood buffering but that timing and the exact amount would depend on the master plan and sequencing.

Ending: Council members and staff expressed general support for addressing immediate safety and user-experience items (sound system, seating/railings, emergency lighting, restroom scoping) while planning larger underground-utility work that requires engineering and master-plan decisions. The council did not take a formal vote on spending at the Oct. 14 study session; staff will return with scope documents and contracts for council approval.