State money to help bail out This Is the Place Heritage Park from its financial woes will be used to replenish the park foundation's endowment fund and fix some of the 43 buildings that have fallen into disrepair over the years.

Park leaders presented details of their plan for the site to lawmakers Tuesday during a meeting of the Executive Appropriations Committee, a bipartisan panel of legislative leaders who make state budget decisions.

Part of the plan includes weaning the living history site from state funds. State leaders were generally pleased with the fiscal report and the direction park officials plan to take.

"It's very encouraging," said Matt Dahl, the park's executive director. "We've had a lot of small miracles this year."

After several tumultuous seasons forced previous park leadership to dip into restricted funds to pay for operations, the state-owned park received $2 million in one-time cash from the Legislature in March to stay afloat. The park, which is privately run, had previously received a yearly stipend of $700,000-$800,000 from the state. Leadership of the park changed earlier this year after the financial disaster, and the new leaders hope they will only need the $800,000 state appropriation for two more years.

"As you know, this park will not operate on just being there. Our biggest challenge with the park is getting people to come back for the second time," said Robyn Pearson, deputy director of the state Department of Natural Resources. To do that, he added, "We're focusing on activities, events and a business plan that will generate additional income."

Part of the plan may include leasing 12 acres of the 450-acre site to the University of Utah's Research Park. In addition, a 9,000-square-foot reception center could sit on an adjacent empty lot. At the behest of the foundation board, both ideas are being researched. The projects could bring in a much-needed $800,000 to the park and would mean it would no longer need state funds.

But the prospect of large development in that open space has many of the park's Sunnyside Avenue neighbors upset.

Dahl and foundation chairman Ellis Ivory have met with residents and plan more meetings in upcoming weeks. The park leaders will decide on specific plans in January or February.

"Something has to be put together to make this park work efficiently, or then one of the alternatives may be coming back and saying we need another appropriation from the Legislature," Ivory told the legislative committee. "I don't want to come back here in two years and say I want another $2 million, and I'm sure you don't want to see me."

Giving a glimpse at just how much the park had been operating in the red, Ivory said $1.1 million of the $2 million from the state will be needed just to catch up on improving the buildings and landscaping.

The park has a $3 million operating budget for this fiscal year, but will only make about $414,000 in ticket sales, events and receptions. Dahl is using a financial model similar to one he used at the American West Heritage Center in Cache County to help This Is the Place earn more money. That model involves taking a year to stabilize the budget, using the second year to improve the product and focusing in the third year on increased exposure.

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E-mail: astowell@desnews.com