WestWorld to unveil larger, better center
Scottsdale looks to bring more crowds, events
Last spring, Scottsdale kicked off a $47 million expansion of the Tony Nelssen Equestrian Center at WestWorld, the city-run venue that is home to such events as the BarrettJackson Collector Car Event and the Scottsdale Arabian Horse Show.
Scottsdale’s mission was to build a bigger permanent facility, enclose it and add heating and cooling for year-round use, hopefully drawing more events — and revenue — to WestWorld, which relies on a city subsidy to make ends meet.
A year and a half later, construction is almost done. And although a grand opening takes place next month, the city plans to hire a marketing firm to draw even more events, which could push WestWorld closer to financial self-sufficiency, city officials say.
WestWorld, like other municipal-run equestrian centers in Arizona, doesn’t draw in enough revenue to cover expenses. Historically, Scotts- dale has covered this operating loss by using dollars from its general fund, made up mostly of tax money.
In recent years, the city’s subsidy ranged from $335,000 to $878,000.
“The goal is to have WestWorld be self-sustaining,” Scottsdale City Councilwoman Linda Milhaven said. “Staff needs to move quickly to hire a marketing firm to help attract or develop new events.”
Meanwhile, crews are putting the finishing touches on a new North Hall building at the WestWorld center, 16601 N. Pima Road. It will house next year’s Barrett-Jackson flagship auction, which is scheduled to air live for the first time on the Fox network in January.
The expansion project, covered mostly by taxpayer dollars, expanded and upgraded the Tony Nelssen Equestrian Center, adding North and South hall covered buildings and enclosing an existing arena. Much of the facility is already up and running.
Contributions from Scottsdale’s hotel-bed tax will cover most of the project’s debt.
Once the facility is fully operational, city officials have said, they expect to generate an extra $2 million a year.
Municipal subsidies
There is still a long way to go. WestWorld expects to bring in an extra $400,000 this fiscal year from rental facilities, its biggest revenue source, compared with 2011-12, according to a financial statement from August. Expenses also are on the rise. According to projections, wages and benefits are expected to increase by about $110,000.
With the bigger air-conditioned facility, utility costs could also go up by $470,000, compared with costs in 2011-12, based on forecasts obtained by
The Arizona Republic through a public-records request.
Overall, Scottsdale expects to invest $3.25 million from a voter-approved bed tax this fiscal year toward the Tony Nelssen Equestrian Center.
Milhaven said the debt is covered by the tax, “which can only be used for tourism purposes.”
“Investing in this facility expansion is just the kind of project envisioned when voters approved an increase to the bed tax in 2010,” city spokesman Kelly Corsette said.
When asked about new events in the pipeline, Corsette said officials “don’t have a definitive number” because many events “are still under negotiation.”
“But we absolutely expect an increase in the facility rental due to the expanded space and the expanded amount of time each year that the space can be used due to its enclosure and air-conditioning,” Corsette said. Records requested by The
Republic show that at least two other city-run equestrian venues in the state had costs that exceeded revenue in fiscal 2012-13. The fiscal year runs July 1 to June 30.
» Queen Creek’s Horseshoe Park and Equestrian Center, on Riggs Road between Hawes and Ellsworth roads, had revenues of $471,600 but spent $975,5000, records show. To cover the gap, the town spent $504,000 from its general fund.
» Tucson’s Rodeo Grounds reported revenue of $41,800. Most of it is restricted toward repairs at the grounds, 4823 S. Sixth Ave., under a contract with the Tucson Rodeo Committee, records indicate. Tucson covered all expenses of $110,000.
Magnet for tourism
For many communities, it is a small price to pay for the tourism and sales-tax dollars generated by events, which they say draw in people who shop at local malls, dine at restaurants and stay at hotels.
A 2012 economic-impact study by ESI Corp. in Phoenix showed that Horseshoe Park produced $4.7 million in revenue for Queen Creek and Maricopa County.
Expanded events
A year ago, Scottsdale sought proposals from firms interested in marketing WestWorld. Those still are under evaluation, said Paul Katsenes, Scottsdale’s executive director of community and economic development. City officials did not say when a contract could be awarded.
Meanwhile, city staff already is marketing the new facility and creating materials to “showcase the new and improved WestWorld appropriately,” Corsette said.
A grand opening is scheduled for Nov. 23.
Brian Dygert, WestWorld’s general manager, showed off the improved facility in a recent tour.
What previously was an open-air Equidome built in the 1980s now is a 110,000-squarefoot covered arena with retractable bleachers, VIP suites and a concrete concourse, which used to be dirt.
“The building itself is the original building,” Dygert said. “We just upgraded it.”
The city also constructed a South Hall building, designed to accommodate almost every- thing from horse stalls to blacktie galas, he said.
At 130,000 square feet, the North Hall is the largest space. Once finished, it will have an asphalt floor and climate-control system to accommodate events even in the hot summer.
Taxpayers aren’t the only ones picking up the tab.
Starting in 2014-15, BarrettJackson, the Arabian Horse Association of Arizona and the Arizona Quarter Horse Association will contribute a combined $360,000 toward the project’s debt annually for 20 years.
Taryl O’Shea, executive director of the Arabian Horse Association of Arizona, said the project makes the setup and teardown process easier for event producers.
“We spend a lot of time, effort and money putting up a temporary facility,” O’Shea said. “This was something we were really in support of and pushed for.”
The association puts on the Scottsdale Arabian Horse Show, the largest Arabian horse show in the world, in February along with other events year-round, she said.
“This will open up our season,” O’Shea said. “We’re talking about adding some more events. This will allow us to expand the Arabian horse show season.” Benjamin Earl Kelley shows Mata Hara, an Arabian horse, during the Arabian Breeders Final. Scottsdale’s WestWorld expects to bring in an additional $400,000 from its rental facilities. DAVID WALLACE/THE REPUBLIC