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.

Curtains Up, Community Divided

When I was a boy, I learned an important lesson on my family’s winery: if you mix the wrong barrels together, you don’t get fine wine—you get a mess. Turns out, the same principle applies to city finances, though some folks in Frisco’s leadership seem to have skipped that life lesson.

Frisco’s new Performing Arts Center has sparked a debate over the methods and madness with which the city is trying to fund the project. Half the city is applauding, marching in lockstep with the mayor and city council, trusting them like a magician who promises he didn’t just make your wallet disappear. The other half? They’re watching this financial sleight of hand and calling foul, led by former city leaders who actually understand the difference between Economic Development Corporation (EDC) money and Community Development Corporation (CDC) money—a distinction that apparently gets a little fuzzy when a big, shiny building is on the table.

The Great Money Shuffle

In our last blog, Frisco’s Bond Ballet, we gave you a civics lesson about how EDC funds are meant to attract businesses and create jobs—you know, the kind of things that keep a city economically stable. CDC funds, on the other hand, are for quality-of-life projects—parks, libraries, and yes, performing arts centers. Two separate barrels, two separate purposes.

Frisco’s Cultural Civil War

Now, I love the arts. I really do! I’ve been to my fair share of performances and appreciate a well-done production. But let’s not pretend that “The Great EDC Heist” is just an innocent case of creative accounting. On one side, you have the true believers, the ones who think this Performing Arts Center will turn Frisco into the next Broadway. They trust the mayor and city council like a cult waiting for the mothership. To them, any skepticism is just negativity.  “Why don’t you want Frisco to have nice things?” they ask, as if wanting accountability is the same as being anti-art.

On the other side, you have the cynics (or as I like to call them, the realists). These are the people pointing out that raiding the EDC fund to pay for a performing arts center isn’t just bad policy—it’s a dangerous precedent. If we’re playing fast and loose with money now, what’s next? A city-funded theme park? A mayoral gold statue? Maybe we’ll just rename Frisco to “Vanity Project, Texas.”

It is time to pay attention and speak against the moves by the city when it comes to treating EDC funds like their personal arts-and-crafts budget, shifting money around with the confidence of a three-card monte dealer on a New York sidewalk.  But every time I hear current leadership speak, I hear “Don’t worry, this is totally above board.”  Right. And I’m the Pope.

Former city leaders—the people who helped build Frisco into the powerhouse it is today—are stepping forward and saying, “This is not how we do things.” And instead of listening, the current administration is waving them off like cranky old men shouting at clouds. But let’s be clear: these aren’t just some bitter retirees whining about change. These are the people who made Frisco what it is, and they’re telling us that this funding scheme smells fishier than a back-alley sushi joint.  Let’s see what they have to say:

In His Own Words: George Purefoy, Former City Manager – aka “The Man Who Built Frisco”

In a recent Facebook Post by Smart Frisco, Former City Manager, Purefoy stated his concerns about the proposed project.  He said, “Unlike the other major Public Private Partnerships (P3), this proposal does not have a private partner on board agreeing to be responsible for all construction cost overruns and for the annual cost for operations and maintenance.  Unlike the other Frisco P3 projects, this project does not project to have all of the funding in place for the construction of the project by the award of bid for construction, thus it is projected that the project will be built in phases, thus cost containment will be even more difficult with inflation.

Purefoy continued, “currently there are no costs for parking included in the projected budget. I estimate that there will be a need for approximately 1200 spaces which will require an additional 12 acres of land if it is surface parking at an estimated construction cost of $7 million (plus land), or if it is structured parking, an estimated $50 million.”

Purefoy went on to say, “To say that there is $0 Cost to Frisco Taxpayers for this project is about as erroneous as anything I’ve seen in political advertising.  Then he said, “Without the need for an election, the Economic Development Corporation funds currently can be used for the cost to build major thoroughfares and utility projects, and the Community Development Corporation funds can be used for both of the above projects plus many others which benefit the City and would lessen the impact on Frisco property taxpayers.”

Purefoy also has “major concerns about what will happen during economic downturns. To add this project to the list of annual budget needs of the City will result in other city departments being negatively impacted in order for the City to fund the performing arts center.”

George continued by saying he was told that the proposed 300-seat community theater included in this project will be used primarily by Prosper ISD.  If that is true he continued “then the primary facility for most of our local arts groups will be extremely limited for their use.”  In his opinion, this effort needs to be led by a local group of private citizens which raises private funds from individuals and companies for both building, operating, and maintaining the Arts Center. The city can then be approached to provide supplemental funding for the construction. Purefoy closed his comments by saying, “With all of the needs Frisco will have to keep up with the aging infrastructure in the not-too-distant future, the City does not need to create another major city obligation to fund on a continued basis.”

After making these statements Purefoy went to one of the Open Houses and updated his statements above. We also had an implant to attend the open house and several of the statements matched what Purefoy had said but we want to share them with you because these were comments by CITY STAFF.

In The Words of City Staff:   

Public Private Partner & Construction Costs and Overruns: “City staff: It is accurate to state that the proposed project does not have a private partner that agrees to be responsible for all construction cost overruns. The city is in the process of selecting a venue operator through an RFP process. While it is accurate to say that to date, we don’t have a private operational partner in place, the city is pursuing an operator-at-risk model for the operation of the venue. This means the selected venue operator would assume financial responsibility for the ongoing operations of the facility without the City of Frisco providing financial guarantees for the day-to-day operations of the facility. Having this type of agreement in place is an important component of moving forward with the project.”  Our implant was told they hoped to have it in place by May and Purefoy was told “It is anticipated that an LOI for an at-risk operator will be in place prior to the May election.” 

Whistleblower Questions: Why is the city putting this project and proposition on the ballot for May, when it is incomplete? The city wants residents to “TRUST THEM” … NEWSFLASH FRISCO: WE DON’T TRUST YOU!  You have given us no reason to trust you based on previous projects.  Maybe instead of saying the city saying we hope, we anticipate, we want they need to say we have confirmed, we have signed contracts, we will once you have put the project together in its entirety.  Right now, you are asking residents to vote blindly on items that are not final and cannot guarantee for your own personal shit’s and giggles.

When our whistleblower asked city staff about the “phasing” of this project we were told the city plans to update the FAQ’s and will not be going forward with that option.  Then George Purefoy posted “The consultants at the open house for the Arts Project told me that the current plan is to hold construction costs to $200,000,000 or less, hold fees for design to $70,000,000 or less and go forward with bidding and make whatever changes are needed to hold costs to no more than $270,000,000 for the project.”   Whistleblower wants to know HOW WILL YOU GUARANTEE THAT? IS IT WRITING? ARE THE DEALS INKED AND LOCKED IN?

When our whistleblower asked about cost escalation contingencies and parking from city staff we got a lot of hum, uh, oh, well, look at this big photo.  However, George Purefoys updated comments after the open house read, “City staff:  It doesn’t appear that cost escalation and/or contingencies are included in the numbers above.  As should’ve been part of Gena’s explanation, the project budget is still in the rough order of magnitude stage. Our public presentations have stated a project budget up to an estimated $340 million. The direction to date is to plan for a budget that does not exceed $300 million. The project budget incorporates standard percentages for contingencies, cost escalations, and soft costs. As our project planning progresses the costs will be refined as the concept design aligns with a project budget not exceeding $300 million. The soft cost calculation of 35% should be applied to the escalated construction costs, and contingencies should be included as well.” Whistleblowers, until the city finalizes an RFP, signs an actual deal (NOT A LETTER OF INTENT) for Broadway, and has guaranteed cash in the bank from donors…someone will be holding the bag if things go south. 

On the same Smart Frisco post in response to George Purefoy’s statements, local businessman Jason Young responded.  Young said “Based on my meetings with some of the players (including private donors). I know of at minimum $50 million ready to go from private folks.”

Mr. Young, what meetings have you had with city leadership and what role do you play in these discussions regarding the FCFA? Are you willing to be it all on your own words that you know “of a minimum of $50 million ready to go by private donors?” Where is the money, Mr. Young? They could donate now or sign commitment letters. Better yet they could put the money in a trust for good faith to help voters feel better about voting for this. Instead, why are we being asked to blindly trust our city leaders and you that, these donors and plans exist. Once again, we ask who will end up holding the bag if those donors you claim “are ready to go” don’t come through.  WHO WILL IT BE?  FRISCO RESIDENTS?  If something falls through the cracks, we will HAVE TO SUBSIDIZE IT!  Lastly, to the city how in the hell do you NOT INCLUDE cost escalations and contingencies in the numbers WHEN YOU ARE ASKING RESIDENTS TO VOTE ON IT? 

Parking: As for parking, we were told they were looking at options, however Purefoy was told that the current estimated need is 1300 parking spaces and the cost for this is included in the not to exceed $200,000,000 construction budget. Structured parking is preferred and if adequate private funding comes in, the structured parking will be constructed, rather than surface parking.” 

Purefoy was also told at the open house that the local arts groups will have approximately 50% of the use of the small theater.  However, the city’s FAQ states “Prosper ISD is anticipated to be the predominant user of the Community Hall.”  It just happens to leave off the percentage of that use and we were told they would have 80% of the use of the small theater.  WHICH ONE IS IT?  WHY ARE THE ANSWERS NOT CONSISTENT?

We are glad to see George Purefoy speak out!  While we have not agreed with every decision he made as City Manager we do agree on this that the burden and risk far outweigh the benefits to resident’s long term. In our next blog we are going to share with you the thoughts by Will Sowell, Brian Livingston and Shona Sowell who just announced she is running for Mayor. Stay Tuned