The day before the opening game on January 18, 1986, against the Duke Blue Devils, the building was officially announced to be named the Dean E. Smith Student Activities Center, while a formal dedication happen later in September.

The future of the arena is questioned due to a variety of issues stemming from a narrow concourse, limited storage, and a desire to have premium seating to earn more revenue.

The issue is further complicated by the fact the Smith Center was privately funded and the seats paid for by the initial donors carry two full generations, which limits any possible renovation, but could be circumvented by building a new arena.

In addition to basketball, the venue has been used to host several concerts, graduations, sporting events, and a speech by Barack Obama when campaigning for the Democratic presidential nomination.

[7] However, when the state refused to find a completely new arena, Carmichael Auditorium was built as an annex to Woollen Gymnasium and the Tar Heels began to play there in 1965-66 season.

[10] Smith stated publicly "We all know that we can use that money better to help the University,"[10] while later in his memoir he also noted that "when you can't get a ticket, that's the best situation for a program.

[12] According to architect Glenn Corley, assistant coach Bill Guthridge hoped the new arena would be "big enough so that everyone who wanted to go to a game could get in, and there wouldn't be one guy outside waiting.

"[9] Future ACC Commissioner John Swofford, Hargove "Skipper" Bowles, and executive Rams Club director Ernie Williamson anchored the fundraising efforts which officially started in May 1980 for a goal of at least $30 million.

[12] They hosted many Rams Club and alumni meetings around the state, where they presented a model of the building while Smith and Bowles spoke to the attendees.

[4] Swofford stated during the campaign: "The key factor, of course, was the job that Dean has done with basketball here and the respect people hold for his program.

[9][15] Following the Tar Heels' victory in the 1982 NCAA championship game, donations increased, which Rams Club vice president Neal Harrell stated "couldn't have come at a better time..."[10] On April 17, 1982, after half the desired amount had been raised, ground was broken for the venue,[1][16] with a target finish date of December 1984.

[10] On the first day of construction, contractors were banned from wearing Duke or N.C. State apparel on the job site for the duration of the build.

[16] Harrell stated that any donations over $5,000 secured the life-long right to purchase seats at the venue, while a gift over $10,000 would grant tickets for two generations.

[1] At the dinner, Chancellor Christopher C. Fordham III announced the building was to be named the Dean E. Smith Student Activities Center because "We are a better university and a better state because he is one of us.

[12][23] A formal dedication of the arena for Coach Smith happened on September 6, 1986, when a pro-alumni game was held which featured the likes of Lennie Rosenbluth, Michael Jordan, James Worthy, and many more alumni of the basketball program.

[27] The architects for the project were Chapel Hill's Joe Hakan and Glenn Corley from Hakan/Corley & Associates,[3][4] Finch-Heery of Atlanta, and New York City's Geiger Berger.

[29] Then athletic director Dick Baddour commented that the sponsorship was allowed in order to help finance upgrades and repairs to the Smith Center.

[31] The initial capacity for the Dean Smith Center was 21,444, which made it the third largest on-campus arena for the 1985-86 college basketball season.

Before the start of the Tar Heels' 2000–01 season, a standing room only section for students was added behind the basket the visiting team opposes in the first half.

[9][28][32] The arena was considered state-of-the-art in 1986; however, despite frequent renovations and updates, there are many issues with the building regarding its large number of seats, limited storage due to the lack of rock dynamited out in the west end, and its narrow concourse.

[38] Following a victory by Florida State, Seminole Sam Cassell was quoted as calling the fans in attendance "like a cheese and wine crowd.

[40] In contrast, Carmichael Auditorium was known for its noise level; before one game, the Virginia Cavaliers couldn't hear their names announced during player introductions because of the din.

[28] The 1988 NCAA Division I men's basketball tournament used the Smith Center as the host for the East region's opening two rounds.

[48] The Smith Center and adjacent Koury Natatorium served as the host for various 1999 Special Olympics World Summer Games events.

This featured a number of North Carolina products returning to Chapel Hill: the Raptors' Vince Carter and the 76ers' George Lynch in addition to 76ers coaches Larry Brown and John Kuester.

[49][50] On April 28, 2008, senator and Democratic presidential candidate hopeful Barack Obama held a rally in the arena before the North Carolina primary on May 6.

[51] Obama spoke in front of 18,000 wearing a Carolina blue tie while encouraging those to vote early and addressed topics like affordable college and the war in Darfur.