The City of Clyde announced Tuesday negotiations with Backporch Productions ended at an impasse over contract language.
"The agreement was always going to be that they were going to maintain the facilities. Here in the last week or so, they've indicated that no, they never intended to maintain the facilities, other than to do it and then charge the city back for that maintenance," Roger Nelson, Clyde City Administrator said Tuesday.
The community was thrown into the spotlight recently when talks started about building the arena that would have held 40,000 people.
The issue stirred up controversy in the community. Many residents expressed concerns about the facility at a September city council meeting. Some residents said Tuesday they're glad to hear the stage won't be coming to Clyde.
"I'm thankful that the city council has reconsidered," said Ann Pittman, who lives in Clyde.
"I didn't like the idea of so many people coming in," added Clyde resident Pat Howe.
Clyde city officials said those people who would have visited the town are the exact reason why the project would have had more pros than cons for the town.
"It would've given Clyde a tourism hook that it doesn't have right now," Nelson said.
Backporch Productions issued a statement Tuesday that reads in part: "Backporch Productions certainly appreciates the time and resources that were devoted by the City of Clyde in connection with negotiating the agreements necessary to construct the Back Porch of Texas Stage and Event Center."
The proposed arena would have cost about $2.3 million, $700,000 of which the city would have paid for.
The Wild West Fest scheduled at Clyde Lake later this month will be moved to Joe Allen's Lytle Bend Ranch.