An agreement between Plano and Plano ISD could see the school district contribute up to $250 million toward the tax increment reinvestment zone, or TIRZ, for the proposed Dallas Stars arena.
Plano council members approved an interlocal agreement with PISD during the Oct. 12 meeting.
Breaking it down
In June, Plano officials created a nearly 900-acre TIRZ, which is a mechanism to fund improvement projects within a defined area through tax revenue growth. PISD’s contribution to the TIRZ under the agreement is capped at $250 million, with the school district contributing 50% of maintenance and operations collections each year.
The agreement does not change the boundaries of the TIRZ or the city’s planned $700 million contribution toward the arena.
The TIRZ is set to remain in effect until Dec. 31, 2052, according to city documents.
Under the agreement, the city would allow PISD to use the arena for district events, such as graduations, or for career pathways and internship programs. PISD would be able to use the venue at no additional cost outside of its share of utility, maintenance and building personnel costs, per city documents.
Some context
PISD trustees approved participation in the TIRZ in June, citing potential revenue benefits that could be reinvested into the district.
Johnny Hill, PISD’s deputy superintendent for business, employee services and technology, said some of the revenue the district would earn from the agreement will not be subject to recapture.
What else
Plano council members approved the agreement ahead of a tax election that could unlock further funding mechanisms for the arena.
Ahead of the Nov. 3 election, the city convened an advisory committee and has been working through various studies for the arena. Plano has also created a website to answer questions and inform residents about plans in the Willow Bend District.
