Frisco City Council members approved a master development agreement between the city, Frisco Economic Development Corporation, Frisco Community Development Corporation and Fields West developers during a July 2 meeting.
The details
Included in the agreement is a performance-based incentive program of no more than $94.5 million, not the $89.5 million listed in meeting documents, to help with construction costs for the development’s public facilities and related improvements.
Council member Tammy Meinershagen said the program will not affect Frisco taxpayers.
“The development itself is going to pay for all of this,” council member Bill Woodard said. “This is not a burden on any of the other parts of Frisco. The better the developer does on this, the sooner these things take care of themselves and move on.”
Mayor Jeff Cheney recused himself during council’s discussion and vote. Board members from the Frisco’s Economic Development Corporation and Community Development Corporation also approved the program on July 2 during a special-called joint meeting.
How it works
The program’s $94.5 million is made up of:
- $7 million in separated materials sales tax grants
- $17.5 million qualified infrastructure grants
- $70 million in Tax Increment Reinvestment Zone No. 7 property tax revenue generated by the project
The separated materials sales tax grant is a rebate that will apply to the sales tax from purchasing construction materials and services. The qualified infrastructure grants will fund up to 50% of the costs for the project’s plaza and linear water features as well as 50% of the cost to build the internal streets.
The TIRZ funds will go toward building three public parking structures, which will accommodate at least 2,430 parking spaces.
Developers will only receive the money if they build those features before certain deadlines, according to a meeting presentation.
- End of 2024: Obtain construction financing
- End of 2026: Start construction on the development’s three phases
- December 2027: Finish the public parking facilities
- August 2028: Finish the water features and required Class A office space, upscale retail and multifamily units as well as substantially lease the retail space
Fields West developers will also be required to pay the city the difference between the debt service payments and the tax revenue generated by the project if the tax revenue does not fund the debt service payments for the parking structures. They must also enter a shared parking agreement with associated use fees and developer maintenance obligations, according to meeting documents.
Some background
Located along the Dallas North Tollway, Fields West is projected to generate over $400 million annually in sales and purchases throughout the city once fully built, said Ken Schmidt, Frisco’s director of special projects. It is also projected to add $330 million in property tax values, Schmidt said.
“This is one of our strategic priorities—getting the north part of Frisco activated in a wise fashion,” council member Laura Rummel said. “This project is going to be absolutely incredible.”
