As part of the redevelopment, Frisco City Council approved the creation of the city’s sixth tax incremental reinvestment zone during its Dec. 1 meeting. The TIRZ will encompass the 175-acre Hall Park, which is bordered by Warren Parkway and the Dallas North Tollway.
A TIRZ is a form of financing that captures growth in the property tax value of a certain area and uses the money generated to fund improvements within that area. It does not create any new taxes.
The portion of Hall Park to be redeveloped is along Warren Parkway between Gaylord Parkway and Internet Boulevard. The current assessed value of the property within the TIRZ is more than $632 million.
“The simplest way I can explain a TIRZ is essentially it’s up to the developer to increase value in the development—going from $600 million to a future value of $2 billion—and a part of that incremental value is then used to pay for these public improvements,” Frisco Mayor Jeff Cheney said. “We’ve used [TIRZ] as a structure very successfully through the city for many years.”
Frisco’s new TIRZ will collect 50% of the ad valorem taxes on the property and 50% of the sales tax generated within its boundaries over the next 25 years. It will also receive potential park dedication fees for open space improvements.
Hall Group, the developer of the property, demolished a pair of three-story office buildings at the corner of Warren and Gaylord parkways in March. The first of several phases of the redevelopment is slated to include a new building at the corner of Warren Parkway and Internet Boulevard as well as a parking structure that would be located next to a potential performing arts facility for the city.
In a document prepared for council, staff said the city is in the process of approving a master development agreement with Hall Group for the performing arts facility.
Assistant City Manager Nell Lange explained Hall Group and its founder Craig Hall are planning a more urban, walkable design for the redevelopment.
“Something that is sustainable [so] that people will live there and work there,” Lange said. “He’s really looking to increase the value and the visibility and making sure that it’s a safe environment and that it’s culturally inviting for office dwellers.”
A request for comment from Hall Group was not immediately returned Dec. 2.
City staff recommended using initial funds generated through the TIRZ to finance the parking facility and plaza, open space and park improvements in the development, both of which would be owned by the city. The city’s portion of the parking facility would be capped at $20 million, and an additional $15 million of TIRZ funds would be used for the open space improvements.
Cheney said the proposed park at the center of the redevelopment is slated to be slightly larger than the 5.2-acre Klyde Warren Park in Dallas.
City staff expect the open space improvements to cost a total of $30 million, with the developer supporting the additional cost.
“When you look at office districts across the metroplex, I’m not aware of any that have a $30 million park in the middle of them,” Cheney said. “This will be unique to Frisco.”