Curtains Up, Community Divided PT 2

If you thought the drama of Frisco’s so-called Future Performing Arts Center was confined to city hall meetings and backroom deals, think again. Mayor Cheney has taken the battle to the digital streets, launching an all-out social media war against anyone daring to question this multimillion-dollar boondoggle on the May ballot.

Like a conductor leading an orchestra of outrage, the mayor isn’t just defending the FPAC—he’s aggressively silencing critics, painting skeptics as enemies of “progress,” and doubling down on the same vague promises that have fueled public distrust. Dissenters? Blocked. Tough questions? Ignored. Concerned citizens? Branded as obstructionists.

Honestly, at this point, who needs a performing arts center? The Frisco drama unfolding online on Mayor Cheney’s Facebook page is almost better than a Broadway show and IT’S FREE!  Between the plot twists, the villain arcs, and Mayor Cheney’s keyboard warrior antics, the entertainment is free—no ticket required.  As long as someone questions the FCFA, Mayor Jeff Cheney will get ants in his pants so cancel the theater plans and let the social media circus continue.

One thing we can tell you, as Frisco teeters between vision and vanity, one thing is clear: This isn’t just about the arts anymore. It’s about power, control, and the lengths our leadership will go to in order to suppress scrutiny, questions, and concerns. In the spirit of giving Cheney something to talk about, we want to continue with more public statements made by community members that many hold in high regard. Curtain up, folks—because this show is just getting started.

In Her Words: Shona Sowell – Former Councilwoman and Running for Frisco Mayor

In a Facebook Post on Shona Sowell for Mayor she posted some of the following details. “Spending $160MM in your taxpayer dollars by changing the use of the funds of Economic Development Corporation, which exists to attract businesses to Frisco, plus adding $7MM a year in operational costs to the City for a performing arts center makes no sense. It is not how we do deals in the City of Frisco.

In Frisco a performing arts facility has long been an issue of research and discussion. Whether you are an arts supporter, performer, casual partaker, or a minor player, one must weigh the costs of a decision that will impact our city budget for decades to come. Previously, I fully supported the joint arts facility in partnership with Frisco ISD and Hall Park. Like other successful public/private partnerships we have done in Frisco, this one had strong partnerships responsible for the operations of the facility. The city was not responsible for cost overruns and was not responsible for the yearly maintenance and operations costs (M&O) for the facility. This approach would have only cost Frisco one tenth of this current proposal. Our financial obligation was limited and spelled out in the agreement. This is how Frisco has been successful with public private partnerships, and it is the same process for The Roughriders, The Dallas Cowboys and The Star, PGA Golf Course, & FC Dallas and Toyota Stadium. However, the current elected officials did not want to partner with FISD and Hall Park on this approach and decided not to move forward. Now they want to spend 10 times that amount on a deal where you the taxpayers own the risk.

The current proposal of a much larger facility in partnership with Prosper ISD and private donations (that do not even exist yet) with an operator who is not well capitalized is a terrible financial decision for the residents of Frisco. This proposal is NOT THE FRISCO WAY and puts Frisco taxpayers at risk.

She went on to give her thoughts on the challenges and risks of what is being suggested, and if you click here you can read them all.  We have summarized them here for you:

Frisco taxpayers are paying for this through “Sales Tax” and Frisco residents voted for those funds to go to the EDC to be used for roads, infrastructure, and to attract corporations.    Second, unlike other private partnerships, Frisco taxpayers are paying twice through the general fund, the taxpayer will be responsible for the annual operational expenses of the facility and filling the funding gap. 

Third, the proposed land which is the site for this project, was purchased by tax dollars and the debt on the land was paid for tax dollars and is owned by EDC.  Now the city wants them to just give it away (instead of selling it to a development at fair market value).  That means taxpayers paid for the cost of the land.  Fourth, elected officials have not disclosed how they will handle parking, and it is not in the cost of the project today.  A garage could cost $50 Million that taxpayers will have to pay for.  Fifth, Sowell noted per the presentation takes 5 years for donations to come in projects like this so if they delay construction taxpayers can expect the cost to go up by almost $100 million by the time we build it. The city would have to take that funding from other departments like police and fire.

She went on to say, public private partnership cannot legally sign contracts to build until the funds needed are in the bank. The bonds must be sold from both entities, and the private donations must be in the Frisco bank account. She pointed out that the consulting group maintains in their presentation from the January work session that the funds will come in more as the building gets closer to opening.  Shona asks, do you as a resident want to be holding the bag and double the city cost when the pledges are not fulfilled? (Slide #2)

Her other concerns include if phasing of the project was an option.  Yet, no plan of phasing has been presented to the residents to fully educate their vote. And if phasing is the method current councilmembers intend to use, how do we ensure the taxpayer is not left holding the bag on a project that stalls and cannot be fully completed?   She also notes the agreement suggests Prosper ISD would control 84% of the dates in the smaller “community” theater—leaving very few dates left for our community groups such as the Frisco orchestra, chorale, theater groups, etc.—to use the “community theater”.  The 2015 Bonds of $10million were sold for the “community groups to have a place to perform.”  That means our own community groups lose big in this facility. They won’t be able to afford it, and there won’t be many calendar dates for them to use.

The annual costs to run the facility are going to be forever subsidized by the taxpayer. The projections from the consultant show a LOSS of over $6million annually for each year, a funding gap that YOU the TAXPAYER will have to cover for the first 5 years. Back in 2017, most art facilities across the country showed an annual loss of more than $10million. If we adjust for inflation—we are probably talking about at least $15-20million.

Even with a “operating partner”—if that partner were to be unable to pay for the costs of keeping the facility open, (see the Winspear, Raleigh Theater and others) the City of Frisco assumes the risk for ALL M&O expenses. Our other operating partners are large, well known, well-funded entities such as the PGA of America, the Dallas Cowboys, the Jerry Jones Family, The Hunt Family, and Bob Rowling. This is not the case here.    We continue to tell our small businesses along Main Street and our public safety officers that we cannot afford 4 men on trucks, increased wages, or support for those businesses going under. But current leaders say we can afford this project? It’s a matter of priorities. While many will tell you Frisco NEEDS this project, it’s simply Frisco CANNOT AFFORD this project. It puts our tax rate, our entire city budget, and our financial future at risk.

In His Own Words: Brian Livingston – Current Council Member

Brian Livingston posted about the performing arts project on his Facebook Page.  He started by sharing the post from Shona Sowell for Frisco Mayor.  He went on to say it is a great conversation starter and something that should be shared as much as possible.   For those that aren’t aware, I voted against putting the Frisco Center for the Arts on the ballot and will vote NO to Proposition A & B in May. My vote has nothing to do with my support for the arts and believe my history shows I have supported the arts community in Frisco.   I voted NO for the following reasons:

1. I disagree with the statement that there is no risk to the Frisco taxpayer. If the operations do not generate sufficient revenue to cover expenses, the Frisco taxpayer will be the ultimate backstop. The “at risk operator” will be a newly created entity that will have limited financial capacity.

2. If capital improvements/repairs exceed the reserves in place, the Frisco taxpayer will again fill the void.

3. There are opportunity costs with using EDC funds for purposes other than what voters have previously approved. There will be economic development opportunities we will miss out on and that will result in fewer high paying jobs in Frisco. For years I have been criticized for supporting legislation and seeking ways to use EDC funds to support the city operations, first responders and capital improvements. What changed?

4. Finally, I fundamentally believe that if the demand for this center was actually as high as stated that private donors would be driving this project not the government.

Livingston closed by encouraging everyone to attend public hearings and email questions to every member of the Frisco City Council.  He also stated he was glad to meet with anyone who wants to discuss my position.

In his own words: John Allen Redmond – Former Candidate For City Council & Resident

Redmond ran for council last year so its not surprising to see him being vocal about what he wants for the great city of Frisco. Redmond stated online “In general, when a private entity spends its money…it is careful. As we see every day, when someone spends govt (OUR!) money…the spigot is open wide. The same small group of vendors and individuals seem to benefit…that is a universal truth…whether here in Frisco, Austin or Washington DC. Trust but verify. There is an operator coming…there are large philanthropic gifts coming…Broadway wants to be here…ignore other venues around the country that are struggling, because we are Frisco…and we will get it right or our citizens will pay for it and it doesn’t matter.  I am simply not convinced.”

He also stated “I will say that it is hard to be all things to all people. My objection to this project is based on economic viability and the narrative on which it is being ‘sold’.  The reality is that this is a 10+ year old “argument”.  We have already spent millions of dollars on this and to-date, and the answer has continually been ‘no’.  Now, if a private entity, like Jason Young, wants to build it…go ahead. But, to gaslight the citizens of Frisco…I am not down for that.”

Lastly, Redmond said, “If this bond (meaning Prop A & B) passes…mechanically they will have the funds to execute the project. So, despite the language that has been used to-date, whatever discovery and/or evaluation they claim is over…this is a done deal.”

In his own words: Will Sowell – Former Frisco City Council

We told you about the Smart Frisco post claiming “It’s Free, It’s Free!”  Reading through the comments we noticed Will Sowell; Former City Councilman spoke up.  Sowell said “I appreciate anyone that advocates for their beliefs in what they want the city to become. But to say this does not cost any city tax dollars is disingenuous.” 

Sowell continues, that the debt being proposed here is debt from the EDC, not City of Frisco debt. So, there is the concept of opportunity cost. If a large employer were considering coming to Frisco, financing would not be available to attract a large employer, which is the mission of the EDC.   That is why (referring to the proposition on the ballot) we have to vote on the EDC use of the bonds because it is not consistent with the charter of the EDC.

Sowell continued, the EDC debt is repaid through sales tax that Frisco residents pay, so there’s first way that Frisco residents pay for this through taxes.  Sowell then pointed out the city Frisco Model vs Venue Management model slide from a presentation and talked about the third way residents will be paying for the PAC.  “Third, during the first 5 years, it is estimated by the City of Frisco that $5MM of budget funds will have to be used to cover maintenance and operations.  

Fourth, the city of Frisco has to cover any overage on the building and on operations. There have been overages on every public private partnership the city has done. The difference here is that the city and thus the residents and not the partner pay for the overage per the city slide.

In The Words of The Whistleblower Team:  

We enjoy reading everyone’s perspective on the future performing arts center.  We develop new questions, learn new things and that is how people grow to make good decisions.  We enjoyed hearing the different perspectives from current and former council members, the former city manager who built this city, and many more.  Like everyone else when we saw Mayor Cheney’s post today, we had to stop and read it and follow the drama in the comments. We plan to publish it in its entirety tomorrow for everyone to read (who has not seen it of course).  Don’t worry, we will not forget to publish the comments because that may be the best part!

We also plan to publish what the candidates think about the Frisco Center For The Arts as we are sending each of them an email to explain their position.  For us, no matter what anyone says we constantly go back to one thing, why did the Performing Arts Partnership with Frisco ISD and Hall Group fall apart?  What was it that made FISD say, nope not our bag of chips!  What made the Hall Group, a huge supporter of the Arts, step back and withdraw the donation of the land for an Arts Center?   Something tells me we should be asking bigger questions, diving for deeper answers. 

Lastly, we continually go back to why they are asking for us to vote to change the use of the EDC funds?  Why are we rewriting the rules?  What about constructions costs and the unknown costs? Simply put, that is what Cheney does!  He voted against a PAC under Maso and Pat Fallon when he was on council.  Maybe he did that because he wanted all the glory and recognition for himself.  Why are they trying to sell it to us so hard?  All of those things make feel like we are being led to drink water in the desert that just isn’t there.

Stay Tuned for The Final Act of Curtains Up, Community Divided.

3 Comments

  1. Joe

    Frisco Chronicles, thank you for getting the message out regarding this mess!

    Reply
  2. John

    So is this strong arm push for Frisco Center for the Arts really just phase 1 for something else? I’m hearing rumors about a city council trip to Vegas to meet with Sands about bringing casinos to Frisco. I want to know if this is true. That actually makes everything else make more sense. I also want to know who exactly owns the surrounding properties to the bazillion dollar Art Center project. Frisonians also deserve to know who this list of private donors are. Why is it not open to the public? Is this another special friends and family only opportunity?

    Reply
    • Joe

      Sands wants to do a casino in Irving. There are many hurdles that would have to be met for casino gambling to come to Texas. Highly doubtful it would happen. As for the land owners, look it up on Collin Cad. The best thing to do is get the word out that this project is not what the city needs. There are better ways to do it but for some reason there is a group that want to changer the rules and put the city of Frisco in weird position. Why the hell would we partner with the prosper school district on this and not the Frisco school district ? Why, FISD knows better and is building their own theater center. This is about trying to lure broadway shows so the hoity toity have a place to be seen. They’ll everyone you know to VOTE, and vote NO for props A and B!

      Reply

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