The Dallas Stars could get millions in tax breaks for a new stadium as part of a funding plan for a new $700 million arena and entertainment district in Plano after a city council vote Monday night.
Plano city leaders voted Monday to support the proposed Dallas Stars arena at The Shops at Willow Bend, approving a series of measures designed to advance one of the largest redevelopment projects in the city's history.
Following the vote, city leaders described the project as a major opportunity for Plano's long-term growth and redevelopment efforts.
"Plano has built a reputation as a city that welcomes world-class partners and community-focused investment," Mayor John Muns said. "These actions are a significant first step as we evaluate the potential for a thoughtfully designed sports and entertainment district that reflects the priorities and values of our community."
The Plano City Council approved a nonbinding letter of intent with the Dallas Stars organization, an economic development agreement with mall owner Centennial, and the creation of a new tax increment reinvestment zone — or TIRZ — to help finance future public infrastructure associated with the project.
A TIRZ is a financing tool that uses future increases in property and sales tax revenue from a developing area to pay for public improvements and infrastructure within that area.
Monday's vote does not authorize construction of the arena itself, but it establishes the framework for future negotiations and financing plans that would be required before development can move forward.
Additional agreements and development approvals are expected to come before the council as planning for the project continues.
In addition to serving as the future home of the Stars, the arena would also host concerts, cultural programming, and other sports and community events.
The approvals mark a significant step toward bringing a new arena and mixed-use development to the aging Willow Bend property, which has experienced several major tenant departures in recent years.
Under the economic development agreement, the city will provide up to $15 million in incentives to support redevelopment efforts. According to city documents, $10 million will help offset demolition costs for portions of the mall, including former retail and entertainment spaces, while $5 million will fund construction of a visitor center.
The city estimates up to $700 million in public infrastructure costs associated with the project, which could be financed through the proposed TIRZ at the roughly 897-acre property surrounding the project area, and other venue-related funding mechanisms if approved in future actions.
City officials determined redevelopment of the area is unlikely to occur through private investment alone and that the project could help stimulate economic activity, increase property values and generate additional tax revenue.
Public comments were mixed.
Some residents voiced support for redeveloping the struggling mall property.
"These projects will bring economic vitality and great amenities to Plano," resident Joseph Landers told council. "We ask that they be implemented thoughtfully with strong maintenance, code enforcement, security, and safety measures to complement our established neighborhoods."
Others questioned the use of public incentives and raised concerns about traffic, noise, neighborhood impacts and taxpayer costs.
"My neighbors and I did not choose Plano to live next to a regional entertainment district," Venturonu said. "We chose it for the quiet streets, the good schools, and a city that puts its residents first."
Plans outlined in the letter of intent also call for future discussions on transportation improvements, youth sports initiatives and small-business engagement programs.
In addition to approving incentives and a new tax increment reinvestment zone, council members also advanced a measure that could allow Plano voters to decide whether to authorize additional funding mechanisms for the proposed arena.
Under that plan, the city could seek voter approval for several venue-related taxes, including a hotel occupancy tax increase of up to 2%, a rental car tax of up to 5%, an event parking fee of up to $3 per vehicle, an admissions tax of up to 10% on event tickets and a venue use tax on professional sports teams.
City officials say those revenue sources, along with future tax increment revenues, could help finance construction of the arena and related infrastructure improvements.
A venue tax election could be held as early as Nov. 3, pending review by the Texas Comptroller and future council action.
The Stars currently play at American Airlines Center in Dallas, where their lease expires in 2031. Team officials have identified Plano as their preferred location for a future arena and entertainment district.
The vote comes as Dallas leaders grapple with a series of high-profile departures and relocation plans affecting the city's downtown core. In recent months, AT&T announced plans to move its headquarters to Plano, Neiman Marcus revealed it will close its longtime downtown flagship store, and both the Dallas Mavericks and Dallas Stars unveiled plans for future arenas outside downtown.
Responding to those developments, Dallas Mayor Eric Johnson warned that neighboring cities are increasingly competing with Dallas for businesses, residents and major attractions, urging city leaders to work together on efforts to strengthen downtown and retain key institutions.
"The wolf is at the door and the wolf is not in this room," Johnson said at a recent city council meeting. "The wolf is not in this room, the wolf is up the tollway."
Emmanuel Rivas Valenzuela is KERA's breaking news reporter. Got a tip? Email Emmanuel at erivas@kera.org. KERA News is made possible through the generosity of our members.
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