The upcoming Sunset Amphitheater project in McKinney is about 70% complete and could accommodate more shows per year than previously expected, according to developers.
Bob Mudd, Venu’s vice president of construction and market expansion, said the entertainment venue could receive a temporary certificate of occupancy by April 1. Mudd spoke about the project's progress and additional investments being made during an Oct. 5 joint meeting between McKinney City Council, McKinney Economic Development Corp. and McKinney Community Development Corp.
The overview
Each governing body is involved in a public-private partnership agreement with Venu related to the Sunset Amphitheater located along US 75. Public officials voted to authorize an amended and restated Chapter 380 agreement for the project during the same meeting.
The action will enable the city manager, MEDC president and MCDC president to combine four previously approved amendments into one updated agreement, according to a city document. The updated agreement would also include a provision enabling a sale-leaseback transaction with Store Capital.
Mudd said the sale-leaseback transaction was “ultimately a midterm financing mechanism” that allows Venu and the city to retain control of the property’s development but the land is sold to Store Capital.
“We use those funds to complete construction and then we have a buyback somewhere around June or July time after we open whereby we'll be able to repurchase the property,” he said.
A closer look
Developers requested consideration of the sale-leaseback transaction after Venu’s expected investment grew from $220 million in the original agreement to more than $330 million, Mudd said.
“Our cost today is right at $334 million,” Mudd said. “There are a number of things that we did that drove those additional investments.”
Venu has designed the amphitheater for multiple configurations that can seat 5,000, 8,000, 12,000 or 20,000, Mudd said. It gives the amphitheater a “much higher capacity for utilization,” he said.
“In order to do that, we needed to bring all of our premium seating down into our base configuration,” Mudd said. “So the original renderings, if you will remember, had the Aikman Club on top. We’ve now tucked it down into the primary center of the bowl.”
Venu is also implementing a “full climate control system” so the amphitheater can operate between October and April. Developers are also implementing technology for immersive live shows that Mudd compared to the Sphere in Las Vegas.
With the changes being made, Venu’s original projection of 60 shows a year could increase up to 100 shows a year, Mudd said.
“Our original estimates for revenue were $98 million and we’re seeing about a 67% increase with these additional shows taking us to $164 million,” he said. “This will be the most advanced outdoor entertainment venue in the world.”
