Report says proposed ARC sports/events complex could bring $26M, jobs to area (2024)

A proposed sports and entertainment complex in Helena could bring in more than $26 million and 97,000 overnight visitors annually to the area, support 330 jobs and generate $12.9 million in income yearly, according to a feasibility study prepared for a nonprofit group supporting the project.

The 25-page report prepared for the Helena Regional Sports Association (HRSA) by Highland Economics evaluates the economic benefits of the proposed ARC Sporting and Events Complex at the Lewis and Clark County Fairgrounds.

Kelly Posewitz, executive director of the HRSA, spoke briefly about the report Tuesday during the public comment portion of the Lewis and Clark County Commissioners meeting, noting they had been sent a copy of it earlier.

“As you can see, the conclusions are very positive,” she said. She said they got comment last year from the public and stakeholders about the project, which impacted its design and goals. And they used some that comment.

She said the next step is to share the findings with the community in a series of meetings, which will allow for more feedback.

Posewitz said the funding plan will include private money from foundations, corporations and individuals as well as “significant support from the community through a bond measure.”

HRSA said earlier if the results are favorable they will approach the Lewis and Clark County Commission to put it on the ballot in 2025 to seek public funding.

Posewitz said they will soon release the results from another report on the sustainability of the ARC once it is built, “which is also very positive.”

The commissioner did not discuss the study or Posewitz’s comments, as the ARC was not listed on the agenda.

According to the study, the 150,000-square-foot complex evaluated would include a 79-000-square-foot indoor arena, a natatorium with sport and therapy pools, a 12,500-seat arena, two turf fields and a fieldhouse cap, team rooms, an administration area and support spaces.

Preliminary costs estimated a $115-$120 million price tag.

The study, which includes four pages of sources and references, looked at whether the center would attract and retain residents and businesses by improving the area’s quality of life, improving the public’s health and avoiding health care costs and attract tourism spending.

The study noted Lewis and Clark County’s median income of $74,590 was the second highest among its “peer” counties of Cascade, Gallatin, Missoula, Silver Bow and Yellowstone.

It said this could amplify the ability of a sports/event facility to attract and keep residents.

The report notes a study by the Brookings Institution found that Midwestern communities that invested in quality-of-life amenities tend to show higher employment and population growth than communities that ranked highly on traditional economic competitiveness measures such as low taxes.

It also found that “an abundance of cultural and recreational amenities” has been found to lower younger people college-educated people and young couples from moving out of state.

The Helena area offers a mix of public, private and nonprofit indoor recreational sports facilities, but none capable of hosting tournaments.

“In short, the study area currently offers a variety or indoor sports and fitness facilities, but none that offers the combined opportunities of the proposed ARC complex, and space for large tournaments (especially aquatic sports) is largely unavailable,” the study states.

And compared to Billings, Butte, Great Falls and Missoula, Helena and Lewis and Clark County lacks the quality of sports facilities found in other large Montana communities.

In terms of tourism, the study estimated there would be 45 events per year, with 27 of those hosting youth participants, eight adult and 10 spectator events such as monster truck shows and bull-riding.

The sports/event complex is expected to bring in more than 97,000 visitors from outside the county each year who will spend more than 200,000 visitor days in the area.

This would result in more than $26 million in visitor spending each year. It was estimated that would include hotels getting $9.1 million of that share, gasoline would generate $5.1 million and restaurants would get $4.8 million.

"Even under generally conservative assumptions, the results indicate that visitor spending associated with hosting events could support 330 jobs and $12.9 million annually in labor income in Montana, most of it in the Helena region," the study states.

The report also notes Lewis and Clark County residents generally have better health outcomes than Cascade, Silver Bow and Yellowstone counties, and the rest of the state as a whole, there is “substantial room for improvement” when compared to Gallatin and Missoula counties.

The report notes that facilities that promote and provide opportunities to be physically active can make a big difference in the health and fitness of the community and encourage people to be more physically active.

“If a new sports complex in Helena could encourage local workers to exercise and improve their health, local employers would benefit from greater workplace attendance and higher worker productivity.