Council approves LOI with Frisco Live to operate proposed Frisco Center for the Arts; one councilmember objects

Frisco City Council voted 5-1 on April 1 to approve a letter of intent (LOI) with Frisco Live, a nonprofit operator backed by Broadway Across America/John Gore Organization and Broadway Dallas, to manage the proposed Frisco Center for the Arts and to finalize an operator agreement should the project move forward.

The LOI commits Frisco Live and its backers to a $4 million capital contribution toward the project (with $2 million due within 180 days of schematic design and a further $2 million one year before construction completion) and frames an operator-at-risk business model. The city will provide a one-time operational start-up reserve of up to $6,000,000 and a one-time maintenance start-up fund not to exceed $1,000,000, both of which staff said would not come from the general fund.

Why it matters: The LOI is a key dependency for a potential May ballot measure and is intended to show voters that a local operator and national presenting partner are committed if the city approves the project. The LOI does not by itself authorize construction; staff said a definitive operator agreement and additional milestones would be required before any ground is broken.

City staff described the operator model and the fiscal safeguards in detail during more than an hour of presentation and council discussion. EA Hoppe, a city executive staff member, told the council that the LOI is “the first step in that procurement process” and that additional steps and a definitive agreement would follow if the project proceeds.

Under the LOI, Frisco Live would run day-to-day operations, programming, ticketing and community-access coordination. Frisco Live proposes a staffing model with about 25 full‑time employees dedicated to the center and said it will lead annual fundraising and education partnerships, including a proposed workforce-training program with Prosper ISD.

The operator-at-risk structure means Frisco Live would be responsible for operating revenues and expenses after the city’s initial start-up support; staff and Frisco Live presented a multi‑year pro forma showing an expected operating gap early in the program that would narrow over time. Staff described a capital maintenance fund that would be city‑administered; Frisco Live committed to contribute $0.50 per ticket to that restricted fund annually, while the city would make an initial $1,000,000 deposit into the same fund at opening.

City staff emphasized that the LOI excludes the financial assumptions tied to a Broadway‑presenting program called Broadway Frisco; those potential revenues and costs were presented separately during the briefing. Staff said the Broadway programming projections are not included in the operator pro forma used to test the operator’s baseline sustainability.

Council discussion focused on risk allocation, fundraising capacity and the protections staff will seek in a definitive agreement. Councilmember comments ranged from strong support—citing long-term cultural and economic benefits—to concern about financial exposure. The motion to approve the LOI was made by a councilmember identified in the meeting as Cammie and seconded by a councilmember identified as Bill; the motion passed 5-1.

Public comment on the item was mixed. Several residents urged approval, saying the center would expand arts access and regional stature. Other speakers opposed using public incentive funds or said the LOI lacked guarantees that the national partners would cover shortfalls.

What’s next: Staff said the executed LOI will be posted on the city website and that a series of public engagement sessions and a public hearing are scheduled in April to provide further detail before the May ballot. If voters approve the project, staff said the parties would negotiate and execute a definitive operator agreement and additional capital campaign milestones would be required before construction.

Quote: “This is the first step in that procurement process,” EA Hoppe said during the briefing, describing the LOI as the framework that will lead to a definitive agreement if the remaining project milestones are met.

Vote at meeting: Motion to approve LOI with Frisco Live — Motion by Cammie; second by Bill. Vote: 5 in favor, 1 opposed. Outcome: approved.