Plano ISD Could Put Up to $250 Million Into the Stars Arena Tax Zone
Plano's council approved a deal under which Plano ISD could contribute up to $250 million to the tax zone behind a proposed Dallas Stars arena, ahead of a Nov. 3 venue tax vote.
Plano voters go to the polls Nov. 3 to decide on taxes for a proposed Dallas Stars arena. Before then, they should know that the city's school district has now been written into the financing.
At its Oct. 12 meeting, the Plano City Council approved an interlocal agreement with Plano ISD, Community Impact reported. Under it, the district could contribute up to $250 million to the tax increment reinvestment zone, or TIRZ, created for the arena.
How the money would flow
The city created the nearly 900-acre TIRZ in June. A TIRZ pays for improvements inside a set area using growth in tax revenue. Under the agreement, Plano ISD would put in 50% of its maintenance and operations tax increment collected inside the zone each year, capped at $250 million.
Community Impact reported that under state school finance law, the district's contribution would be offset by a recapture adjustment. Johnny Hill, the district's deputy superintendent for business, employee services and technology, said some revenue the district would earn from the deal would not be subject to recapture. Trustees approved joining the TIRZ in August.
The agreement does not change the zone's boundaries or the city's planned $700 million contribution toward the arena. City documents say the TIRZ runs until Dec. 31, 2052. In return, the district could use the arena for events such as graduations and for career pathway and internship programs. It would pay only its share of utility, maintenance and building staff costs.
What is on the ballot
The council called the Nov. 3 special election on Aug. 10, according to a city news release. The proposition would authorize venue taxes to help pay for a city-owned sports and community arena in the Willow Bend District:
A short-term car rental tax of up to 5%
A hotel tax increase of up to 2%, bringing the combined hotel rate to as much as 15%
An event parking tax of up to $3 per vehicle
An admissions tax of up to 10% of the ticket price
A use tax of up to $5,000 per game on each member of a major league team playing there
The city says these taxes apply only to specific transactions and would not change residents' property tax rate. It also says the election "does not determine the future of the arena." The election notice filed with Collin County describes the project as a multipurpose arena in The Shops at Willow Bend area.
Questions worth asking
Supporters will say visitors pay the venue taxes. That may be true. But school tax growth is now part of the plan, and the city's share is $700 million. Voters have every right to ask what they get for that and who carries the risk if the crowds don't come. The city has set up a page at Plano.gov/WillowBendDistrict. Early voting starts Monday; see what else is on Texas ballots.
Hero photo: Jackilometresan / Wikimedia Commons, CC0 (public domain dedication), cropped and resized.
