Plano Independent School District could direct up to $250 million in tax revenue toward a proposed Dallas Stars arena under an agreement approved Monday by the Plano City Council.
The agreement, previously approved by the Plano ISD Board of Trustees over the summer, would direct a portion of future school district tax revenue toward the project.
The proposed arena is part of a $3 billion redevelopment of The Shops at Willow Bend that could bring the Dallas Stars from the American Airlines Center in Dallas to Plano.
Under the agreement, Plano ISD would receive access to the city-owned arena for graduation ceremonies and other district events.
Plano ISD currently holds graduation ceremonies for its three senior high schools at the Ford Center at The Star in Frisco.
In a Wednesday statement, district officials explained that the agreement would allow Plano ISD to retain a portion of property tax revenue that would otherwise be sent to the state through Texas’ school finance recapture system.
“The agreement is structured so that Plano ISD directs a portion of new revenue over a set period, revenue that would mostly have gone to the state through recapture, to support economic growth in Plano and, ultimately, the tax base that funds our schools,” district officials stated.
Plano Mayor John Muns, a former school board trustee, expressed support for bringing graduation ceremonies back to the city.
“That’s a big deal to me is to be able to see seniors get their diploma … right here,” Muns said.
The agreement comes ahead of a November 3 election in which Plano voters will consider Proposition A, a measure that would authorize the use of venue taxes to help finance the proposed multipurpose arena.
The project has faced opposition from residents concerned about the use of taxpayer dollars to subsidize a professional sports venue.
Last week, Stop the Stars Arena PAC hosted a community meeting where speakers raised concerns about the proposed Tax Increment Reinvestment Zone, potential infrastructure expenses, and additional costs to public services.
Opponents also questioned whether publicly subsidized sports facilities deliver the economic benefits often promised by developers and local officials.
Meanwhile, city officials are examining the project’s potential impact on traffic and surrounding neighborhoods.
At Monday’s council meeting, officials reviewed preliminary findings on traffic congestion associated with arena events. Questions remain about the cost of necessary road improvements and who would be responsible for paying them.
A complete traffic impact report is expected by the end of October.
Early voting for the November 3 election begins October 19.
