Arlington Council Votes Tuesday on Rewriting Its Cowboys Stadium Deal
Arlington's council will vote Tuesday on an amended agreement with the Dallas Cowboys. City staff say it spells out how the city's stadium money can be spent before a planned bond refinancing.
Arlington taxpayers have a lot riding on the Dallas Cowboys. On Tuesday, the city council will vote on a rewritten version of the deal that keeps the team in town.
What is on the agenda
The agenda for the Tuesday, Oct. 20 meeting includes a resolution authorizing the city manager to sign an "Amended and Restated Master Agreement Regarding Cowboys Stadium Extension" with Cowboys Stadium L.P. and the Dallas Cowboys Football Club. It is listed as a regular resolution, not a consent item. The meeting starts at 5 p.m. in the council chamber at 101 W. Abram St.
According to the staff report, the council approved the original agreement on April 21 as Resolution No. 26-134. It extended the lease through 2055 and called for improvements to the stadium complex.
Why it is back
The staff report says the city is preparing for a bond refinancing called for in the agreement. The city's bond lawyers, consulting with the public finance division of the Texas Attorney General's Office, recommended clearer language. The rewrite says the city's contribution is for "the actual costs to maintain, operate, and manage the Stadium." Staff say the Cowboys still must fund and finish the promised improvements by 2043. They list the financial impact of Tuesday's change as "None."
The money involved
The resolution and attached agreement spell out what each side has promised:
The Cowboys agree to invest at least $750 million in the stadium complex.
The city would deposit $50 million into a stadium maintenance and operation account on Oct. 1, 2028.
After that, the city would deposit $20 million a year from Oct. 1, 2029, through Oct. 1, 2048. That amount would shrink if the team gets a loan rate below 6.35%.
The city's money comes first from voter-approved venue taxes: sales, hotel and motor vehicle taxes. If those fall short in any year, the city must cover the gap with other lawful funds.
The team must try to earn federal SAFETY Act anti-terrorism certification for the stadium by the end of 2030.
The staff report projects the Cowboys will produce about $9.7 billion in economic impact in Arlington over the next 30 years, with a $1.2 billion fiscal impact to the city.
Worth watching
A change described as clarifying language can still matter. The rewrite limits how the city's yearly payments may be spent, and that is a protection taxpayers should want. But residents should also notice what stays the same. The city is still on the hook to make up any shortfall in venue taxes for two decades.
The city plans to stream the meeting on its website, and it will air on AT&T U-verse Channel 99 and Spectrum Channel 16. Citizens wishing to speak on items not on the agenda must pre-register by 3:30 p.m. Tuesday.
Related on Dock Line: Plano ISD Could Put Up to $250 Million Into the Stars Arena Tax Zone; Collin County's $817.5 Million Bond Would Carry $486 Million in Interest
