Plano, Texas, advances NHL arena and entertainment district project

City of Plano, Texas

The city council in Plano, Texas, took initial steps on Monday to advance a $3 billion sports and entertainment district that would include a partly bond-financed arena for the National Hockey League's Dallas Stars. 

In a series of 8-0 votes, the council approved a non-binding letter of intent with the team that calls for the city to contribute $700 million for an arena costing $1 billion or more through the issuance of bonds paid off with property and sales tax growth within an almost 900-acre tax increment financing reinvestment zone, along with "other legally available funds."

Tax revenue growth within the zone is expected to total $1.63 billion over 41 years, according to a staff presentation.

The team, which currently plays in Dallas' American Airlines Center, would commit to an initial 30-year lease for the city-owned arena, which it would operate and maintain. 

Also receiving council approval were an economic incentive agreement and a venue project resolution, that if approved by the Texas comptroller, would allow Plano to put a tax package on the Nov. 3 ballot that would be tapped to pay off revenue bonds issued for public infrastructure. Taxes would be on rental cars, hotel occupancy, event parking, venue admission, as well as a per-game venue use tax on members of major league teams that play at the new arena.

"This is this is going to be a long process for us to work through the community, work (with) the organization, to make sure it's the right fit, make sure we have all the feasibility studies done, and that we have all the information for you all to consider," Deputy City Manager Doug McDonald told the council. 

Plano has a population of about 300,000. The sports and entertainment district would supplant an indoor mall that opened in 2001 and has since declined, with most of its anchors having closed, according to the city staff report. The location is 17 miles north of the Stars' current home.

Since 2001, the NHL franchise has shared American Airlines Center in downtown Dallas with the National Basketball Association's Mavericks, which last week announced option agreements to purchase property elsewhere in the city for an arena and entertainment district.

In 1998, Dallas issued $140.4 million of revenue bonds backed by voter-approved rental car and hotel occupancy taxes, as well as team lease payments, for its share of the $420 million arena. The debt was paid off 16 years ahead of schedule in 2017.