July 22, 2026

By Mary Beth Gahan

Voters might have a say about whether to proceed with a proposed Arts Center, but an election won’t take place this year.

At a presentation earlier this month, town council members heard more details about the design and operating budget of the potential cultural arts center at the River Walk. They were also given four options: go forward with the project, put it on pause, have a bond election, or stop all future plans and dissolve the tax increment reinvestment zone around it.

On Monday night, Town Manager James Childers told them that if the issue was to be placed on the November ballot, the election would need to be called by Aug. 17 and a decision would need to be made soon so staff could prepare the language and other materials for the ballot.

None showed an interest in making that move just yet, even the two council members who believe residents should make the ultimate decision on the Arts Center.

Mayor Pro Tem Adam Schiestel said he didn’t want to put it on the ballot, but felt like it would eventually be something that will be taken to residents.

Council member Chris Drew, who was not at the meeting, said he campaigned on a promise to send more financial decisions to voters and the believed that was the best path for the Arts Center.

“I think we need to wait, better review the details in the 2027 budget, and then make some decisions on election content,” he said.

The next time a bond election could take place is in May.

The Arts Center has been in the works for years, but some residents have balked at the optics of a $75 million price tag as the town addresses an expected budget shortfall. That money would come from TIRZ #1, a tax increment reinvestment zone, not the general fund. But the facility is not expected to generate enough revenue to cover expenses for at least the first six years, leading the town to be creative with how to fund it. That could mean going back to the drawing board for a redesign.

Mayor Cheryl Moore said the cultural arts center would be an asset that could “revive” the River Walk area, but noted financial hurdles in the future, including a possible tax rate increase in a couple of years.

“My concern about the Arts Center, and I know it's the concern of the council, is the timing of this,” she said at Monday’s meeting.

The Arts Center at 4200 River Walk Drive would have a main theater with 650 seats, a 3,400-square-foot multi-use flex studio that could be divided into classrooms, and 1,700-square-foot gallery space.

Construction would cost $75 million and would be mostly, if not completely, funded by TIRZ #1, which was created in 2005 to pay for infrastructure along the FM 2499 corridor.

In late 2024, the council approved a five-year extension of TIRZ #1. Denton County also agreed to put money into it and contributes about a third of the revenue in TIRZ #1 going forward, according to Melissa Demmitt, the town’s communications director. The fund is expected to generate $50 million by 2030.

If town council decides to dissolve TIRZ #1, about $5.5 million in tax revenue would be added to the general fund each year. The county would walk away with its portion.

Construction isn’t the only time the town would need to provide money for the Arts Center.

To cover operating expenses, the facility would bring in revenue from ticket sales, user fees, and space rental. Money would also likely come in from grants, private donations, and sponsorships.

Still, it wouldn’t be enough.

In its first year, the expenses are expected to be nearly $2.5 million. The facility is estimated to bring in $1.8 million.

Personnel costs in the pre-operating year would be $364,000 and more than $590,000 each year after opening, according to estimates from Webb Management Services.  In years two through five, expenses would exceed revenue by about $500,000 annually.

That gap would likely have to be filled with money from the town’s general fund.

Childers floated a couple of funding options during Monday’s meeting.

One he called “radical” was to pivot the Arts Center to a shared space that still has a theater, but also convention space and meeting rooms to draw in more visitors and revenue. He pointed to Abilene’s Convention Center as a similar concept.

With that idea, the town could use hotel occupancy tax (HOT) that the events generate to help fund the facility. That tax revenue can only be spent in specific ways.

“That’s drastically different than what we’ve been talking about for several years,” Childers said.

Flower Mound only has two hotels, but several others are in the works.

It’s an idea that needs to be fully vetted, Childers said, because up all studies have been looking at only a cultural arts center.

The town is also compiling information about what neighboring cities have done to generate income at their performing arts centers. They will return to town council with a report on it.