NEWS: $37.6M Budget before HTRFA Board
Proposed Fiscal Year 2026 expenditures driven by region's investment in new sports and events center
The Board of the Historic Triangle Recreational Facilities Authority (HTRFA) is scheduled to vote on its proposed $37.6 million fiscal year 2026 budget at a special called meeting today, Wednesday, June 25, 2025 at 3 PM in the Stryker Center, located at 412 N. Boundary St. in Williamsburg [click here to view the meeting agenda and proposed budget]. The plan includes $1.82 million in operating expenses within a $3 million operating budget, with the remaining $34.5 million earmarked for capital projects.
The Historic Triangle Recreational Facilities Authority (HTRFA) was established in 2021 as a political subdivision of the Commonwealth of Virginia. It was formed through resolutions passed by the Williamsburg City Council, the James City County Board of Supervisors, and the York County Board of Supervisors. The HTRFA Board is chaired by Andrew Trivette, the Williamsburg City Manager and includes York County Administrator Scott Stevens as well as James City County Administrator Mark Bellamy.
A summary of operating and capital expenditures included in the proposed budget is below. This analysis is supplemented by contracts received from the City of Williamsburg, in response to a Freedom of Information Act request, which the City provided free of charge.
Funding sources
As agreed upon when the public entity was created, the HTRFA is funded through a combination of tourism-related tax revenues and structured contributions from its founding localities—Williamsburg, James City County, and York County. The primary source of funding is the 1% Historic Triangle Regional Sales Tax, a special retail tax levied within all three localities. State law mandates that this revenue be used exclusively for tourism-related projects and marketing. Additional operating support comes from meals, lodging, and other tourism-related taxes collected and distributed by the three jurisdictions.
Capital expenses
In addition to tax revenues, capital project funding is bolstered by debt proceeds from issued bonds and supported by debt service reserves, making the HTRFA’s funding model heavily reliant on tourism-generated income and structured financial tools, rather than residential taxes.
According to the proposed budget, the bulk of capital spending will be used to complete construction of the Greater Williamsburg Sports and Events Center (GWSEC). Under the funding structure, Williamsburg covers around 64% of the debt service for the sports facility, which equates to approximately $2.5 million annually. The HTRFA contributes the remaining 36%, or about $1.5 million annually, from its own portion of the regional sales tax.
Operating expenses
All three jurisdictions help to cover the annual operating costs for HTRFA, with FY26 contributions expected to be $586K from Williamsburg, $1.3M from James City County and $1.1M from York County. Some of the funding contributed by James City and York for operations will ultimately vary over time depending on the facility’s needs.
Salaries and wages for professional staff, as well as management fees make up the largest expenses in the FY26 budget, followed by the lease for the sports center land. A FOIA response provided for free by the City included several contracts which provide additional information related to these expenses:
Management fees and salaries
In May 2024, Kemper Sports Management (KSM) was selected by HTRFA to handle both the planning and full operational management of the Greater Williamsburg Sports and Events Center. All employees at the center will be hired, trained, and managed by KSM, though payroll is funded by HTRFA. For FY26, the budget for salaries and wages is $345,157. For their services in FY26, KSM will receive a professional management fee of $300,000.
During the pre-opening phase, KSM is providing consulting on facility design, equipment installation, and budgeting. It is also responsible for developing the initial business plan, marketing strategy, and brand identity—including the facility’s name, logo, website, and social media presence. Once the facility is operational, KSM assumes full responsibility for day-to-day operations, including event and tournament management, food and beverage services, financial reporting, marketing, and maintenance.
Hiring facility management
Key management positions for the new facility include a General Manager, Sales & Marketing Director, and Sports Manager. As reported in the Williamsburg Independent, HTRFA and Kemper Sports Management recently announced that Ben Hardouin will become the facility’s General Manager, bringing what is described as “over 30 years of high-level executive leadership experience in the health, fitness, and recreational industry.”
Sales & Marketing progress
KSM previously presented information to the Board about growing momentum in bookings for the Greater Williamsburg Sports and Event Center, with multiple events scheduled for late summer and fall 2026, shortly after the facility is expected to open. Additional commitments have been secured for January through August 2027. At the time, 30 event dates had already been confirmed, representing an estimated $355,000 in contract revenue—up from $105,000 in February and $225,000 in April. Looking ahead, the sales and marketing team plans to expand its focus on sponsorships and conference services. A new update is expected to be presented to the Board at their meeting today.
Recent bookings already announced include events such as Cheer Festival, Hype Nation Volleyball, Big Shots, Phenom Hoops, Southern Volleyball, 3SSB Circuit Open Gym, Junior 3SSB Open Gym, NTBA, Blue Silver Volleyball, and Rich Comley. Several other contracts are pending finalization, including Catchball, AmeriCheer, Catfest, Burgquest, and the NCRS Corvette Show. New event inquiries have also been received from Super 32 Wrestling, CVCU Volleyball, NASP Virginia, and Jaimee Kitt Gymnastics.
Review HTRFA’s agreement with Kemper Sports Management:
Land lease with Colonial Williamsburg Foundation
The site of the sports center is owned by Colonial Williamsburg Foundation. Their lease with HTRFA stipulates a yearly payment of $220,000, which will increase by 15% starting in the sixth year of the lease and every five years after that for the remainder of the lease term. The current lease began in May 2023 and could last up to 60 years.
The agreement includes an escalation clause for the annual Base Rent of $220,000 for the sports center site. After rent begins, it will increase by 15% on a compounding basis every five years for the duration of the lease. The Foundation is also guaranteed a percentage of parking fees and a $1 surcharge on all tickets sold.
This HTRFA Ground Lease establishes a 13.84-acre site as the main location for the sports center, which is situated within a larger 69-acre property known as the Visitors Center Property. In addition to this primary parcel, the lease grants the Authority the option to lease nearby land for future expansion.
These additional parcels could be used to develop more sports and recreational facilities, such as fields, courts, or training areas. The HTRFA entered into a preliminary agreement to design and build a live performance venue back in 2024, though the project has yet to receive the funding necessary to progress.
Still, the lease gives the HTRFA five years to exercise the option, with a possible three-year extension. During this period, the landowner, Colonial Williamsburg Foundation, may pursue its own development plans for the land but must first offer the Authority the chance to lease it. However, if a third party offers to buy any of the expansion parcels, the Authority also holds a right of first refusal, giving it priority to match the offer and preserve future growth opportunities.
Review HTRFA’s ground lease with Colonial Williamsburg Foundation:
Naming rights and sponsorships
In December 2024, the HTRFA hired The Superlative Group, Inc. to help generate revenue for the sports center through sponsorships and naming rights. The agreement is split into two main phases.
Phase I is focused on identifying what parts of the facility could be sold as sponsorship opportunities and figuring out how much they’re worth. Superlative analyzes both measurable factors (like audience reach and media exposure) and intangible benefits (like community image and brand value). They also review contracts and policies to identify any restrictions, compare to similar facilities, and begin building a list of potential sponsors. This phase takes about 6–8 weeks and ends with a detailed Valuation Report. HTRFA pays Superlative $55,000 for this work, split into two payments of $27,500.
Phase II involves launching a targeted sales campaign to secure sponsorships. Superlative works with HTRFA to create marketing materials, research prospects, and reach out to company executives. They arrange meetings and site visits, negotiate sponsorship deals, and make sure contracts are fulfilled properly. Superlative also sends HTRFA monthly updates on progress. This sales phase is expected to last at least 12 months. Over that time, Superlative will be paid a $7,500 monthly retainer plus a 17.5% commission on any sponsorship revenue they help bring in.
Review HTRFA’s agreement with Superlative Group:
Search for an Executive Director
The search for an Executive Director for HTRFA continues, as the Board will discuss the issue today in closed session. The City of Williamsburg is managing the recruitment process, and as the Williamsburg Independent previously noted, the job description states the new role will be responsible for collaborating with local, regional, and national partners to attract events, managing contracts and leases, developing new facility plans, and promoting HTRFA venues through marketing partnerships with other tourism-focused organizations.
The Director will also oversee budgeting, daily operations, and facility maintenance, while serving as a liaison between the HTRFA Board, contractors, and local Parks and Recreation staff. The proposed budget allocates a $75,000 salary to the position. Previously, Trivette outlined a multi-stage hiring process, including standard interviews, a mock presentation to the Board, and a more informal social panel to evaluate candidates. He proposed that the role report directly to him in his capacity as City Manager, a model which he claimed is often used in regional collaborations to reduce costs. Under this arrangement, the Executive Director would also assist with other City projects as needed.
AI was used to help produce this post.