SEDA halts Lone Star Arena discussions

Authority board expected to issue statement on the issue

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Lone Star Arena, home to the Cowboy Capital of the World PRCA Rodeo among dozens of other rodeo events each year, will soon be under new ownership. || TheFlashToday.com photo by MAIRA SANCHEZ

By AMANDA KIMBLE
TheFlashToday.com

STEPHENVILLE (October 27, 2016) – Stephenville Economic Development Authority (SEDA) board of directors took no action on a funding assistance request from the prospective owner of Lone Star Arena Thursday.

Following a public hearing on the issue and more than an hour of executive session discussions, the board simply said they would take no action.

While SEDA is expected to release a statement related to the board’s discussion, the location of the arena seems to be the problem. Lone Star Arena is located at 4696 North U.S. Highway 377, outside of Stephenville’s extraterritorial jurisdiction (ETJ).

In Texas cities of less than 25,000 inhabitants, the ETJ stretches a mile beyond the city limits, and Lone Star Arena is about half-a-mile past that boundary. 

SEDA Executive Director John Hubbard said Cody Johnson, an Erath County businessman who is considering the acquisition of Lone Star Arena, had agreed to voluntarily annex Lone Star Arena into the city of Stephenville.

But law requires properties to be within a city’s ETJ for annexation to occur.

Furthermore, SEDA, a type B economic development authority, operates on funds derived from city sales tax. Law requires the funding is not spent beyond the ETJ.

The SEDA board of directors met in closed session for more than an hour Thursday to discuss assistance for Lone Star Arena. || Flash photo by AMANDA KIMBLE
The SEDA board of directors met in closed session for more than an hour Thursday to discuss assistance for Lone Star Arena. || Flash photo by AMANDA KIMBLE

While the news halted discussion related to Johnson’s loan request, the SEDA board is expected to make a statement about other types of assistance that might be provided to the entrepreneur which would not include the expending of taxpayer funds.

The desire to step up to help relates to the impact Lone Star Arena had – and could again have – on Stephenville’s economy.

Paul and Marcie Sullivan operated the facility during its heyday, a period spanning about eight years. During their ownership, events were numerous and ranged from roping and rodeo events to dog and trade shows and others.

And, when business was good and attendance was high, it was felt by businesses across the city and county. There has been a drastic decline in the number of events – 91 were booked in 2011 versus the 9 year-to-date in 2016, according to SEDA Executive Director John Hubbard.

The fate of the arena was a hot topic at SEDA’s monthly meeting Thursday, which included a public hearing relating Johnson’s funding assistance request. The (up to) $1.2 million agenda item drew the attention of several audience members, including a few businessmen, council members and others.

Johnson has asked for assistance in making improvements to the arena that would make the facility more competitive with newer ones and help in attracting events to Stephenville. Johnson’s plan, according to fellow businessman Chad Decker, who spoke on his behalf, is to hire an outside manager to operate the arena. Johnson would purportedly like to see the facility function as an events facility welcoming concerts, as well as roping, equine and rodeo events.

Hubbard said Lone Star Arena as a minimum potential annual economic impact of $25 million, an estimate that Stephenville Chamber of Commerce CEO/President July Danley called very conservative.

Hubbard said the arena will likely be shut down if Johnson does not take ownership of it, and Danley said it would be harder to build events and activities back up if the business was closed for any period of time.

During the public hearing portion of the meeting, Decker, who owns Hard Eight BBQ, attributed 25 to 30 percent of his restaurant and catering business to the arena. As a competitor and president of the local pro rodeo association, Decker urged the SEDA board to consider the importance of the facility to the city’s status as Cowboy Capital of the World and Tarleton State University and its rodeo team.    

While events have drastically declined over the years, Danley said interest in Stephenville, where 50 percent or more of the visits are equine related, and the arena is a vital part of that traffic.

“It is not your average private business,” she said. “It is our convention and public events center.”

Danley also said while the 2016 Cowboy Capital of the World PRCA Rodeo was a success, the event lost a number of local sponsors whose businesses had already been impacted by Lone Star Arena’s struggles. She said that impact is being felt by private businesses and nonprofit organizations that are dependent on their success and contributions. 

Finally, Decker said Johnson has already assembled an advisory board that includes community leaders involved in rodeo sports and different facets of the community.

The Flash will continue to follow this developing story.


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2 Comments

    • sad when we cant get any new restaurants or home improvement stores but will bend over at will for Tarelton or rodeo arenas that cant make a profit…

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