Frisco Council launches $182M Toyota Stadium refresh: ‘a world-class project’

Plans to turn land around Toyota Stadium into a mixed-use district and renovate the stadium itself are in motion as Frisco looks to provide a better venue for both soccer and non-athletic events.

“We're going to create a sports epicenter right here in Frisco, Texas,” FC Dallas President Dan Hunt said.

Stadium renovations, which will take place throughout 2025-28, will be done in phases to allow FC Dallas games and any potential 2026 World Cup programming to take place, according to a Sept. 17 FC Dallas news release.

What happened?

Frisco City Council members approved three agreements during a Sept. 17 meeting that make up a multimillion-dollar, public-private partnership to renovate Toyota Stadium and build a mixed-use district around it.

• A reimbursement and performance agreement for stadium improvements
• A master development agreement to develop land around Toyota Stadium into a new sports-anchored mixed-use district
• A fourth amendment to the stadium’s lease, setting the terms of the renovation reimbursement payments and a project timeline

There will be no effect on residents’ property tax rates as a result of the agreements and incentive program, council member Tammy Meinershagen said.

The public-private partnership behind the stadium renovations and district has been in place since the stadium opened in 2003. The agreements represent the next stage of that partnership, said Ken Schmidt, Frisco’s director of special projects.

Partner members include the city, Frisco Economic Development Corporation, Frisco Community Development Corporation, Frisco ISD and Frisco Stadium LLC, which represents the Hunt Sports Group and Hunt family who own the FC Dallas team.

FEDC and FCDC members approved the mixed-use district and reimbursement agreements during a Sept. 17 meeting just before City Council’s approval. FISD’s board of trustees approved the agreements during a Sept. 16 meeting.

The breakdown

Renovations planned for Toyota Stadium are extensive, Schmidt said. Current plans include:

• Upgraded club spaces and seating
• New luxury suites
• New broadcast booths and press box areas
• New stadium technology and broadcast capabilities
• New LED sports lighting and other audio and visual upgrades
• New food service commissaries and kitchens
• New public restrooms, concessions and retail outlets
• New entrance gates at the stadium’s north, east and west sides
• New canopy shade structures
• Adding over 3,400 seats

The improvements will keep the stadium fan-friendly, Hunt said. Additional seats and better suites will allow the stadium to recruit more high-level events such as concerts and host national teams, he said.

The mixed-use district will be located across two sections of land surrounding Toyota Stadium, according to meeting documents. One section is entirely owned by the Hunt Sports Group and the other is owned by both the group and the city.

Plans for the district include building the following:

• 1.2 million square feet of Class A office space
• A 200-room hotel
• A 200-unit multifamily high-rise building with 300,000 square feet of retail and restaurant space
• 30,000 square feet of retail and restaurant space either freestanding or on the ground floor of the hotel or multifamily building
• Parking structures for event attendees and mixed-use district tenants
• Pedestrian-friendly civic spaces and urban streetscape improvements

The district, which accounts for over $1 billion in private investment, would funnel visitors and revenue into The Rail District and support downtown businesses, Schmidt said.

The Rail District, located less than one mile east of Toyota Stadium, is an ongoing city redevelopment project projected to finish in summer 2026.

Diving deeper

The construction timeline for stadium improvements will take place during and after the 2026 World Cup, which FC Dallas is expected to participate in as a practice facility for traveling teams.

The stadium will remain open during renovations and construction will be done in phases, according to a Sept. 17 FC Dallas news release. Construction on the east side of the stadium is slated to begin after a Jan. 6, 2025 championship game while the west side of the stadium will remain operational during the 2025 MLS season.

FC Dallas plans to continue hosting MLS matches at Toyota Stadium throughout the renovation process, according to the release.

Funding the projects

The three agreements approved by council and the other stadium partners make up the financial, management, planning framework and partnership structure required to deliver the proposed improvements.

The agreement would allocate a $182 million sales tax revenue bond for construction and renovations. Public facility debt service payments would be made in the following ways:

• 44% to be paid by Frisco’s Tax Increment Reinvestment Zone No. 1
• 36% to be paid by Hunt Sports Group in the form of bi-annual lease payments paid through Dec. 31, 2057
• 20% to be paid by FCDC

The reimbursement and incentive program agreement splits district plans into two interchangeable phases:

• Phase 1A: includes the hotel, multifamily and retail spaces
• Phase 1B: includes the office building and parking structures

In order to receive city funds, Phase 1A must be completed by 2035 and Phase 1B must be completed by 2037.

The Hunt Sports Group will receive $12.5 million for each finished phase from a $25 million qualified infrastructure grant from FEDC, FCDC and city sales tax, Schmidt said. A separated materials sales tax grant consisting of 50% of the city’s sales tax revenue generated by the project construction will be awarded if the phases finish on time.

The agreements require stadium renovations to start by Dec. 31, 2025 and finish by Dec. 31, 2028, according to a meeting presentation.

Any stadium capital improvement costs over $182 million would be the Hunt Sports Group’s responsibility, according to meeting documents.

Also of note

The agreements will keep FC Dallas playing in Frisco until 2057, a three-decade extension of the team’s current contract with Toyota Stadium, Schmidt said.

An extended lease is part of the payment plan for the projects as FC Dallas will pay a higher rent for stadium use, according to meeting documents.

The lease includes provisions to coordinate FISD’s schedule during Major League Soccer playoffs and the district’s use of the National Soccer Hall of Fame and side club for events, according to meeting documents.

Going forward

City and Hunt Sports Group officials will continue refining plans for the district and renovations, Schmidt said.

“You have our commitment,” Hunt said. “My brother Clark and I will deliver a world-class project to the city of Frisco.”