As residents prepare to vote on the $340 million Frisco Center for the Arts proposal, Mayor Jeff Cheney and the rest of city council are facing community skepticism — especially concerns about how it will be funded.
The proposal outlines funding from a mix of city corporations, school district bonds, private donations and public-private partnerships. But the language of the ballot, particularly its reference to “ad valorem taxes,” has caused confusion and stirred opposition.
Breaking Down Tax Questions
The fear that the new arts center will result in higher property taxes has become the most common criticism from residents. Cheney insists those fears are unfounded.
“From the very beginning, city council has been aligned that the only way we would bring this project to the voters is to ensure it does not impact our property taxes,” Cheney wrote in a statement.
“Let me say as direct as possible again, this project will not increase your property taxes.”
The key distinction lies in how the project is funded. The city will not issue general obligation bonds backed by new property taxes. Instead, the center for the arts will draw from already-established sales tax-funded corporations: the Economic Development Corporation (EDC) and the Community Development Corporation (CDC). These funds were specifically created by voters decades ago for development projects like this one.
What’s in the Funding Mix?
The proposed funding for the project breaks down as follows:
- $100 million from Prosper ISD, already approved by voters
- $100 million from private and corporate fundraising
- Up to $160 million from City of Frisco resources:
- $75 million from the EDC
- $45 million from the CDC
- $40 million from Tax Increment Reinvestment Zone #1 (TIRZ 1)
“We feel very good that we have anticipated every contingency, and if an unpredicted doomsday event happened to change all of these numbers council always has the decision to delay or abandon the project,” said Cheney, who also pointed out that none of the city funds will be stretched to the breaking point. For instance, the EDC has $84 million in unassigned cash and over $100 million in real estate assets.
Addressing Opportunity Costs
Critics have also asked what else the city could do with the money if it didn’t pursue this project. Cheney argues that waiting would be a missed opportunity: “We have waited for 15 years for this project to materialize, so what are we waiting for?”
He explains that the EDC and CDC funds are not fungible for general city services. State law requires them to be used for economic development and community projects. Redirecting these funds would require an entirely separate public vote. Cheney also warns that building only the long-discussed community theater, which would require voter-approved bonds, would increase the city’s property tax burden and operating costs.
“Ironically, moving forward with a community theater alone would actually impact our property tax rate by selling those bonds and we estimate it would cost $1 million a year to operate it from general fund revenues,” Cheney said.
"This would cost us more in the long run than the professionally run facility we have negotiated and are voting on.”
The Bigger Picture: Economic Impact
According to Cheney, the arts center isn’t just a cultural investment — it’s an economic engine, bringing in more visitors and even maybe more Fortune 500 companies. As an example, he points to the city's prior success with The Star, PGA Frisco and Toyota Stadium, all funded through similar mechanisms.
“In this deal, the EDC owns the 60 acres,” he wrote. “Overnight, the land values of the adjacent land will go up substantially.” That kind of appreciation would increase sales and commercial property tax revenues — further shifting the city’s tax base from residential to commercial.
“Our goal is to get our residential tax vs commercial tax base to be 50/50. We are roughly 70/30,” Cheney added, arguing that projects like this help move the city toward long-term financial sustainability.
As Local Profile previously reported, Cheney believes the biggest reason residents leave the city is due to the absence of a strong arts and entertainment scene. Despite Frisco’s reputation as a sports and business destination, many locals travel to nearby cities for cultural experiences. Cheney and Deputy Mayor Pro Tem Tammy Meinershagen argue that building a premier arts venue will not only satisfy that demand but also boost the local economy by keeping residents and attracting visitors.
Designed for the Long Haul
The project also includes a long-term maintenance plan — a first for Frisco. A portion of ticket sales will be set aside for capital expenditures to ensure the facility remains in excellent condition for generations. “While sports facilities have a typical life of 20-30 years, an arts center is designed to be a 100-year asset,” Cheney said.
Another unique aspect of the proposal is its management structure. The arts center will be operated by a partnership including the John Gore Foundation, Broadway Across America and Broadway Dallas — widely regarded as leaders in the live entertainment industry. For the first time, they have agreed to an “operator at risk” model, assuming financial responsibility for the center’s performance despite not owning the venue.
Cheney compared it to “combining the Dallas Cowboys and Kansas City Chiefs to create a super team that markets better than anyone and wins Super Bowls.”
“The bottom line: this deal will not increase your property taxes, it will be managed with an operator at risk model, we have funding sources ready and budgeted to go, it will be another economic engine for Frisco and most importantly a source of community pride,” Cheney concluded.
“It will be an outcome that changes Frisco forever. Let’s put politics aside and get it done together as a united Frisco.”
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