- Plano voters defeated Proposition A with about 55% opposed, according to unofficial results Bisnow cited, which cuts off new taxes on rentals, hotels, parking and tickets for the arena.
- The measure would have helped cover the city’s $700 million pledge to a city-owned arena anchoring a $3 billion district at The Shops at Willow Bend site.
- City officials say they will reassess funding, while the Stars’ CEO told Bisnow last month the project could still advance, so the district’s timing and financing are now open questions.
Plano’s planned Dallas Stars arena just lost a funding option: voters rejected Proposition A, a package of five new taxes.
About 55% of voters, over 56,000 people, said no, versus nearly 47,000 yes votes, based on unofficial city results Bisnow cited.
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What the Vote Killed
The proposition would have added taxes on rental cars, hotel stays, event parking, ticket sales and other venue activity. According to Bisnow, the revenue was intended to help cover the $700 million the city pledged to the project.
City staff estimated the taxes could generate up to $1 billion. Visitors from outside the city were expected to cover most of that amount, the publication reported.
City and Team Respond
Plano officials said the city must reconsider its funding plan before moving forward with the arena. Mayor John Muns called the redevelopment an important opportunity in a statement. He also promised a careful review of the next steps.
Last month, Stars CEO Brad Alberts told attendees at a Bisnow Collin County event that construction could continue even if voters rejected the measure. However, the team did not immediately respond to a request for comment after the vote.
The Opposition’s Case
Stop the Stars Arena, the group opposing the measure, argued that local residents would ultimately pay the taxes. The group also warned that the district could create additional costs for the city.
Meanwhile, MMR Realty Advisors’ Victor Russell, who works with the group, questioned whether the mall site could accommodate an arena so close to the Willow Bend neighborhood.
Zoom Out
The arena anchors a planned 90-acre district at the mall site. Developers envision up to 2M SF of office space, two hotels, roughly 1,000 residences and more than 200,000 SF of retail and entertainment.
The project also connects to the Collin County office story we covered last month. KDC’s Aarica Mims told Bisnow that a 250,000 SF user has roughly four Class A buildings to choose from. Meanwhile, the Stars district and Frisco’s Fields development could add up to about 13M SF of new office space.
Additionally, our September look at DFW malls showed how weaker Class B centers are becoming redevelopment candidates. Sports and mixed-use districts are among the potential uses.
Why It Matters
The vote doesn’t cancel the district. However, it removes one planned source of public funding for a city-owned arena.
Plano created a tax increment zone in June covering nearly 900 acres. The zone is expected to generate more than $1.3 billion in property tax revenue and about $245 million in sales tax over 41 years.
What’s Next
Watch how Plano identifies alternative funding sources. Also, look for confirmation from the Stars on the timeline they discussed last month. Ultimately, the office, hotel and residential components depend on how the funding question plays out.
