Plano City Council unanimously approved an interlocal agreement on Oct. 12 that allows Plano Independent School District (ISD) to contribute up to $250 million toward a proposed Dallas Stars arena at The Shops at Willow Bend, according to Local Profile. The contribution will come from 50 % of the district’s maintenance‑and‑operations tax increment collections within a nearly 900‑acre tax increment reinvestment zone (TIRZ) that the city created for the project.
The agreement, which follows the school board’s August decision to participate, also grants Plano ISD and the community access to city‑financed facilities for graduations, athletic events and other educational or community purposes, Local Profile reported. The district will still pay its proportional share of utilities, maintenance and building expenses for those facilities.
Under the plan, the TIRZ will remain in effect through Dec. 31, 2052, with the district’s $250 million cap projected to be reached in about 18 years, yielding an estimated $438 million in total benefits for the schools, Local Profile noted. The district is currently projecting a deficit of roughly $44.8 million in its next fiscal budget, a shortfall that officials say the arena arrangement could help offset, according to Daily Mail.
The city has earmarked $700 million for the arena and related public improvements, while a special election slated for Nov. 3, 2026 will let voters decide on a suite of venue‑related taxes—including a motor‑vehicle rental tax, hotel occupancy tax increase, event parking fee and admissions tax—to help fund the broader redevelopment, Local Profile added. If approved, those taxes would apply only to visitor transactions and arena activity, not to existing property taxes.
Critics have raised concerns that the $250 million would come from recapture funds that normally flow to poorer Texas districts, a point highlighted by BroBible. Supporters, including ISD Board President Dr. Lauren Tyra, argue the money will stay in Plano and benefit local families, a sentiment echoed by ISD Superintendent Theresa Williams.
What’s next: Plano residents will vote on the venue‑related tax proposals on Nov. 3, 2026. Approval would unlock additional financing for the arena and the surrounding mixed‑use development, while rejection would require the city and district to revisit the funding strategy.
Sources: localprofile.com, dailymail.com, brobible.com
