The 2001 Legislature authorized the sale of $10 million in bonds for use in replacing an unsafe grandstand on the fairgrounds. The pavilion project was recommended by a legislative task force that decided against using the money to enclose L.B. Day Amphitheater, remodel the Salem Armory and build an all-weather sports field.

The task force's goal was to approve projects that would help the fairgrounds generate revenue. As planned, the pavilion would be built with 5,000 permanent seats and room for 3,000 temporary seats. It would be used for concerts and fairground-related activities. The L.B. Day Amphitheater, built in 1987, has about 8,700 seats.

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