By R.J. Morales | TX3DNews
PLANO — The Plano City Council unanimously approved a series of measures Monday night advancing a proposed Dallas Stars arena and entertainment district at The Shops at Willow Bend.
The votes included a non-binding Letter of Intent with Dallas Sports and Entertainment, creation of a Tax Increment Reinvestment Zone (TIRZ), and an incentive agreement with the property’s developer. Together, the actions move forward a proposal city officials estimate could ultimately represent a $3 billion investment at the former mall site.
Letter of Intent Begins Arena Negotiations
The centerpiece of Monday’s meeting was approval of a non-binding Letter of Intent between Plano and Dallas Sports and Entertainment, which owns the Dallas Stars.
Deputy City Manager Doug McDonald said the agreement does not approve construction of an arena but instead begins formal negotiations between the city, the Stars and developer Centennial.
“This is kind of day one,” McDonald said. “This is a start line for us to look at, is this feasible? Can we do this? What are the impacts? How do we address the impacts?”
McDonald said the proposed development could ultimately represent a $3 billion investment, including a $1 billion arena and approximately $2 billion in surrounding mixed-use development.
Under the framework presented Monday, the arena would be owned by the city and leased to Dallas Sports and Entertainment for an initial 30-year term.
He said the process could take between 12 and 24 months and will include transportation studies, parking plans, financing negotiations, a community benefits agreement and additional council approvals.
TIRZ Could Help Fund Proposed $700 Million Commitment
Council members also approved creation of TIRZ No. 6, a nearly 900-acre district stretching along the Dallas North Tollway corridor.
The zone will capture future property tax growth generated within the district and dedicate those funds toward redevelopment projects.
McDonald said the city is evaluating multiple financing tools, including TIRZ revenue and venue taxes, that could contribute toward a proposed $700 million public commitment associated with the arena project.
Council members also approved a resolution beginning the process for a potential venue tax election that could eventually go before voters.
Incentive Agreement Provides $15 Million for Redevelopment
A third vote approved an economic development incentive agreement between Plano and Centennial Waterfall Willow Bend LLC, the developer overseeing redevelopment of the former mall property.
The agreement is intended to support demolition and redevelopment of the aging mall site and provides up to $15 million in assistance, including $10 million for demolition costs and $5 million for a new Visit Plano visitor center.
In return, Centennial must continue redevelopment of the property, provide a new visitor center location and include a multi-purpose arena anchored by a franchise from one of the nation’s four major professional sports leagues.
Residents Question Cost, Traffic and Neighborhood Impacts
While the votes were unanimous, several residents raised concerns about traffic, parking, public financing and neighborhood impacts.
Jody Venturoni questioned the city’s proposed contribution to the project.
“We’re talking about $700 million that is coming from the city coffers,” Venturoni said. “That is not a partnership, that is Plano taxpayers subsidizing a privately owned professional sports team.”
Jeff Pascal, representing nearby neighborhoods, described his community as “ground zero” for the project’s impacts.
“We’re worried about cut-through traffic as drivers try to bypass major intersections, along with event goers invading our residential streets to seek free parking,” Pascal said.
Residents also raised concerns about noise, congestion, public safety, property values and whether publicly funded sports venues ultimately deliver the economic benefits often promised.
Officials Say Project Represents Rare Opportunity
Supporters of the proposal argued that the project could help revitalize a property that has struggled for years.
Councilmember Anthony Ricciardelli said rejecting the proposal could leave Plano with little influence over the project’s future.
“It is clear to me that the Stars want to be in this area,” Ricciardelli said. “If we say no to this, they may end up in a city that’s on our border.”
State Rep. Mihaela Plesa said the project should ultimately be judged by its long-term impact on residents and taxpayers.
“The success of this project should be measured by whether it creates lasting value for Plano residents and taxpayers,” Plesa said.
Plesa also acknowledged concerns raised by residents, noting that “large-scale developments require thoughtful planning, especially when it comes to transportation, infrastructure, public safety and neighborhood impacts.”
Plano City Councilmember Dr Shun Thomas encouraged residents to stay engaged and participate in the city’s upcoming July open houses.
“I want to encourage ALL citizens to attend the offered open houses that will come up in July to learn about the potential project and how it affects the community,” Thomas told TX3DNews.
What’s Next?
The city plans to hold public open houses on July 8 and July 14 as part of an ongoing public engagement process. Residents can also review project information and follow updates through the city’s Willow Bend District website.
Transportation, parking and feasibility studies are expected to begin in the coming months as negotiations continue between the city, Centennial and the Dallas Stars organization. City officials emphasized that Monday’s votes marked the beginning of the process and that multiple agreements must still return to council before any final arena project can be approved.
During council discussion, officials noted that if the arena project does not move forward, the incentive agreement would return to council for reconsideration.