Plano City Council has approved the city’s sixth tax increment reinvestment zone (TIRZ) to allocate funds for the construction of the Dallas Stars arena at Willow Bend Mall. The TIRZ will use sales and property tax growth from 896.94 acres along the Dallas North Tollway to fund the city’s portion of construction costs, estimated to be around $1 billion.

TIRZ Details

The TIRZ will generate over $1.3 billion in new property tax revenue and roughly $245 million in sales tax revenue within the 41 years it will be in effect. The zone is currently 100% nonresidential and will expire at the end of 2067. The city will use $700 million from the TIRZ to cover some of the construction costs, while Dallas Sports & Entertainment LP, the parent company of the Stars, will cover the rest.

Plano Director of Special Projects Peter Braster explained that the TIRZ separates taxes from the area into two categories: revenue from its base value and revenue from its growth since the TIRZ was established. The base value is based on the amount of tax revenue collected in 2026, with any additional revenue collected in future years due to increased property value being reinvested into projects within the TIRZ.

Next Steps

City Council has been designated as the board of directors for TIRZ 6 and will develop a final project and finance plan to adopt at a future council meeting. Additionally, Plano residents may have the opportunity to vote on additional taxes applied to visitors and activities related to the venue in November.

Original reporting: Community Impact — Plano — read the source article.