PLANO, Texas — Plano ISD can contribute up to $250 million toward the tax zone funding the Dallas Stars’ proposed arena at The Shops at Willow Bend after the Plano City Council approved an interlocal agreement with the school district at its Oct. 12 meeting, Community Impact reported.
The money goes into Tax Increment Reinvestment Zone No. 6, a nearly 900-acre district along the Dallas North Tollway. The city created the zone in June to back up to $700 million in bonds for the arena, which is expected to cost about $1 billion. The agreement does not change the zone’s boundaries or the city’s planned $700 million contribution.
In exchange, Plano ISD can use the arena for graduations, district events, and career pathways and internship programs. The district would pay its share of utility, maintenance, and building personnel costs for those events and nothing beyond that, according to city documents.
Plano ISD trustees signed on to the zone in June, after Deputy Superintendent Johnny Hill walked the board through it on June 23. For board president Lauren Tyra, the city owning the arena mattered, and so did the money that would flow back to the district.
“(The Willow Bend) area has never held the promise that we were sold as a community at the time,” Tyra said. “And if I have the opportunity to reinvest this money in our community and then that is going to flow back into the district, I think that’s a massive win for the district and a massive win for students.”
How The Plano ISD Agreement Works
Under the agreement, Plano ISD will put 50% of its maintenance and operations collections from the zone into the fund each year until it reaches the $250 million cap. The zone is set to remain in effect until Dec. 31, 2052, according to city documents.
Plano ISD is a property-rich district that sends part of its tax revenue to the state through recapture. District officials say the $250 million is offset by a recapture adjustment, meaning that money would support a local project rather than go to the state, The Dallas Morning News reported. Hill said in June that the district’s participation would not add any new taxes for residential property owners.
Hill also told trustees at a June work session that Plano ISD stands to gain “substantial financial benefit” from the deal. The district’s three senior high school graduations are currently held at the Ford Center at The Star in Frisco.
Plano resident Gary Cary, who is involved with the Stop the Stars Arena group, told The Dallas Morning News he is confused by the school district’s participation.
Proposition A Goes To Plano Voters On Nov. 3
The council put Proposition A on the Nov. 3 ballot in August, and the school district agreement passed three weeks before that election. A yes vote would let the city levy a venue tax on hotel rooms, car rentals, arena parking, tickets, and venues. FOX 4 reported that the tax would bring in an estimated $700 million to $900 million. Early voting in Texas starts Oct. 19.
At Monday’s meeting, Plano Mayor John Muns wanted voters clear that Proposition A is not a property tax. Stars leadership has said the same thing repeatedly.
“I don’t want anybody to be confused that it’s any more than that,” Muns said. “That’s what it is.”
Muns also sat down with FOX 4’s David Sentendrey after Monday’s meeting.
“Maybe we weren’t ready for this 20 years ago, but we are today,” Muns explained.
Muns believes Plano has the infrastructure to make the arena project work.
“Absolutely. It’s been a real priority for the City of Plano,” Muns said.
Members of the STOP The Stars Arena PAC spoke against the plan during public comment Monday. Plano resident David Romick, a member of the PAC, said the city has not answered questions about infrastructure costs around the site.
“And we keep asking the city, ‘What about the other costs?’ The costs to the road improvements, to the infrastructure, for drainage, for power, all that,” Romick said. “Everything says, ‘Oh, we’re still negotiating that, or we don’t know that yet. We’re still studying that.’”
The Willow Bend Redevelopment Advisory Committee, which includes homeowners association representatives from 10 Plano neighborhoods, told the council that nearby homes could see steady appreciation, not a sudden jump, with any gains likely coming several years after the project opens. Traffic was the committee’s main concern, though no traffic data was presented Monday. Plano Police Chief Ed Drain said game nights will require significantly more officers, and event organizers—not the city—will pay for them.
Muns said that if Proposition A fails, the city will explore other revenue sources for the arena. The Stars announced plans for an arena and an adjacent entertainment district at Willow Bend in May, estimating the full project will cost $3 billion. Mall demolition is scheduled to begin in 2027.
