A slowing economy may put a damper on a performing arts center in Federal Way.

Just as the city’s arts enthusiasts were preparing to launch a capital fundraising campaign early next year, the city council on Dec. 2 opted to hold off on a vote that would have allowed staff to pursue $5 million in state funding for the center.

The council instead voted to discuss the city’s legislative agenda, which currently highlights the performance arena as the city’s number one funding request for the 2009 legislative session — days before they are scheduled to present their needs to legislators.

City staff and a grass-roots coalition have worked vigorously toward a performance center for nearly two years. The city council has been kept abreast of the latest findings and studies in support of the center. Until the council’s Dec. 2 meeting, it appeared as though a performance venue was a priority for staff and council. But city council member Jim Ferrell surprised some at the meeting by making it known he believes the city is rushing into the project — which is expected to cost $54.7 million and will include a performance center and parking garage.

“This is just not thought out very well,” Ferrell said. “It’s reckless to embark on a project that is this uncertain.”

City staff and the arts coalition have proposed three sources of income to pay for the arts center. The city is considering contributing $20 million to the project. About $4 million is expected to come from federal and grant money. An annual state contribution of $5 million per year, for four years, is hoped to add another $20 million in funding. Land is likely to be donated at an estimated worth of about $5 million. The rest will come through private fundraising.

Ferrell cited the state’s increasing budget deficit and the flailing economy as reasons why the city should wait to further embark on the high-priced venue. He showed dissatisfaction that the performance center was tentatively placed by staff as the city’s top 2009 legislative priority. Additionally, he worried what would happen if private fundraising fell through.

“This is literally incomprehensible considering the global financial crisis in which we now find ourselves,” he said. “I don’t think there is money in the state budget for it.”

Arts coalition president Joann Piquette disagrees.

“Our thought is this is a wonderful time to do it,” Piquette said. “We are quite certain the (construction) costs would be way low.”

A company has already shown an interest in bidding on the project, she said. But without the city council’s backing, a performance center is a long stretch.

“We absolutely have to have the council buy in on this,” Piquette said.

Before this month, she believed city management and the council were all willing and eager to pursue a performance center, given the council has previously approved funding efforts toward it. In 2007, with the council’s approval, the city re-allocated $80,000 from the Federal Way Arts Commission plan and 2006 budget to a feasibility study, performed by C.H. Johnson Consulting Inc.

The agency concluded an approximately 700-seat center would serve the community well. State Sen. Tracey Eide helped Federal Way clinch $500,000 from the state Legislature earlier this year. The money can be spent on pre-construction and design, such as architectural and engineering work. The city council voted to accept this funding, knowing it must be allocated by July 2009.

“We need a commitment from the city,” Piquette said. “I consider them partners and I’ve always assumed that.”

The coalition raised $45,000 this past summer to hire The Collins Group, a consulting agency expected to provide private fundraising assistance. City staff was informed of this.

On Dec. 4, the group heard a report from agency. By March, suggestions for pursuing private funds are expected. As of now, the coalition’s efforts toward the project will continue. But the future of a performance center is uncertain. Staff has done all it is able to without council approval, city manager Neal Beets said.

“If the city now is saying we really don’t want to be partners in this, I don’t know (what will happen next),” Piquette said.

The city council is slated to vote during its 7 p.m. Jan. 6 meeting at City Hall, 33325 8th Ave. S., on whether to pursue 2009 state funding for a performing arts center. Public comments will be taken.