The agreement was approved in a 6-1 vote at an April 16 meeting, with council member Justin Beller voting against the item.
The details
The Sunset Amphitheater, a $220 million open-air amphitheater with a 20,000-person capacity, was announced on March 12. The venue will be located at the northeast corner of US 75 and SH 121.
The venue is expected to host a minimum of 45 shows per year and create over 650 jobs, according to a presentation at the meeting. Bob Mudd, president and chief operating officer for Notes Live, said the company will work with either Live Nation or AEG as the operating partner for the venue.
In addition to shows, the venue will also host local and community events such as graduations.
The estimated economic impact for the region totals $3 billion over the first 10 years. The facility is expected to see about $98 million in sales each year and generate nearly 55,000 hotel stays in Collin County annually, according to a presentation at the meeting.
Construction on the project is expected to begin Aug. 1, with an estimated completion date of May 2026, according to city documents.
Diving deeper
The city’s development agreement with Notes Live also lists the McKinney Community Development Corp. and the McKinney Economic Development Corp. as partners.
The incentives for the project include grants as well as performance-based incentives in the form of reimbursements, according to city documents. The deal terms include:
- A grant of $26 million to be used for parking infrastructure, with MEDC contributing $5 million, MCDC contributing $3 million and the remaining $18 million from the city.
- A reimbursement of $5 million for necessary off-site roadwork to nearby roadways and intersections, as well as additional reimbursements for costs over this amount.
- The city will bear the cost of impact fees related to roadways, water and wastewater for the project over the first $1 million paid by the developer. This is valued at about $3 million.
- A grant equal to 80% of the sales tax collected by the city for construction materials purchased in McKinney.
- A reimbursement of 75% of the sales tax collected from the venue by the city for the first 11 years, and a reimbursement of 40% of the sales taxes collected by the city for years 12-16. This is estimated to be valued at about $11.5 million in reimbursements.
- A reimbursement of 75% of the ad valorem taxes collected from the venue by the city for the first 11 years, and a reimbursement of 40% of the ad valorem taxes collected by the city for years 12-16. This is estimated to be valued at about $3.9 million in reimbursements.
In addition to the grants and reimbursements, the deal also includes the conveyance of the 46-acre property, currently owned by the MEDC, to the developer. The land is valued at $35 million, according to the presentation.
The venue will also charge a $1 ticket fee collected for each ticket sold, of which $0.10 will go to the city and $0.90 will go to the developer. This is valued at $13.1 million to the developer and $1.5 million to the city over a 20-year period, according to the presentation.
Despite the estimated $3.9 million in ad valorem tax revenue that is expected to be reimbursed, the city still expects to collect $4.4 million in property tax revenue from the project over 20 years. Estimated property tax revenue to other taxing entities over the first 20 years includes:
- $2.9 million to Collin County
- $1.6 million to Collin College
- $22 million to McKinney ISD
For more information on the project, visit www.mckinneytexas.org/764/sunset-amphitheater.
