Council member Justin Beller voted against the item, and Mayor Pro Tem Geré Feltus was absent from the meeting. Members of the McKinney Community Development Corporation and McKinney Economic Development Corporation boards also approved the amendments.
The specifics
The amendments were focused on four aspects of the agreement, according to a presentation at the meeting.
The first amendment allows for a change to the terms of purchase for the land and associated incentives. Representatives of Venu, formerly Notes Live, are set to purchase the land for the project for $35 million, including a $10 million cash transaction, from the McKinney Economic Development Corporation.
The amendment allows for the remaining $25 million for the land purchase to be transacted as a personal guaranty rather than a letter of credit, which was outlined in the original agreement, according to city documents.
Beller said the change in the transaction type opens the city up to “transactional risk” as part of the deal, such as city involvement if the project were to go through bankruptcy.
“The way we had it structured was to try to avoid those situations,” Beller said. “Where we are going now is we’re accepting some sort of transactional risk.”
McKinney Mayor George Fuller said that in return for the change in the transaction type, city leaders were able to negotiate additional site enhancements for the project.
“I grant you that there is some more risk, but for that, we’ve gotten quite a few additional modifications to the site plan and to what they’re delivering,” Fuller said.
Diving in deeper
The second amendment expands the list of eligible operators for the amphitheater. Three potential operators were included in the original agreement, including Live Nation Entertainment, Anschutz Entertainment Group and Oak View Group.
The amendment added ASM Global and Opry Entertainment Group/Ryman Hospitality Properties as potential operators, according to city documents. An operator for the facility has not yet been announced.
The third amendment includes changes to the aspects to the site design for the project, including additional masonry screening in the back of house area, an additional sound-attenuating wall and increasing sidewalk widths from 6 to 8 feet in some areas, city documents state.
The fourth amendment allows the city to potentially use eminent domain for infrastructure needs related to the project. This would enable the city to use the eminent domain process to acquire right-of-way or easements for public infrastructure necessitated by the traffic study for the project, city documents state. The property owner would maintain responsibility for costs associated with the eminent domain process.
The context
The $220 million open-air amphitheater was announced in March. The new entertainment venue will have a capacity of 20,000 people and be situated on 46 acres located northeast of US 75 and SH 121, adjacent to the Sheraton McKinney Hotel, according to a news release.
The amphitheater-style venue will offer direct sightlines to the stage from every seat, as well as views of the sun setting over the stage. The amenities include:
- Fully-covered seating areas
- 250-plus luxury fire pit suites
- A landscaped grass area
- Traditional reserved seating
- Owner's Club suites
- Gourmet food and drinks
- Over 5,000 parking spaces
McKinney leaders approved the initial development agreement for the project in April, which includes over $50 million in incentives.
Looking ahead
Project representatives are refining the site plan for the amphitheater, and are expected to present it to McKinney City Council members for final approval at a Nov. 5 meeting, City Attorney Mark Houser said at the meeting.
The facility is set to open its doors in 2026, according to a news release from the developers. For more information on the project, visit www.mckinneytexas.org/764/sunset-amphitheater.
