FRISCO, Texas — This article was originally published by our content partners at the Dallas Business Journal. You can read the original article here.
FC Dallas President Dan Hunt took a moment by himself to reflect after Frisco City Council approved Sept. 17 a public financing deal and economic incentives package for his family's plan to renovate Toyota Stadium and make it the centerpiece of a massive mixed-use sports and entertainment district.
For Hunt, the Major League Soccer team and its 19-year-old venue have a special place in his heart. Construction of Toyota Stadium marked the last project Hunt worked on with his father, Lamar Hunt, before the sports business visionary died in 2006. Now, he sees the planned improvements and upcoming development around the stadium as building upon his father's legacy and vision for what soccer could eventually become in the United States.
"I get emotional thinking about it because every day we were there working on [the stadium] — building, sitting through design meetings and now it's going to take that gigantic leap toward that hope that he had," Hunt said. "Back in 2006 before he passed away, there were a lot of life lessons taught, but one of the big things he said is, 'In 50 years, I believe MLS will rival the NFL.' And by the way, that's about the time of our lease.
"We're going to see how it goes, but I'm not going to bet against the guy who's in the Pro Football Hall of Fame, National Soccer Hall of Fame and International Tennis Hall of Fame."
Toyota Stadium will undergo $182 million in upgrades that will include canopies to add shade, more seating by reconstructing the venue's underutilized north end and more. The Hunts also plan to develop more than 1 million square feet of class A office space, a 200-room hotel and a 200-unit multifamily tower around the stadium. Hunt estimated the total project will cost between $1.1 billion and $1.3 billion.
Frisco approves $182 million Toyota Stadium renovations
"I think we're going to build one of the great soccer venues in the entire world and grow the game more," he said.
Here's a breakdown of the project, including how it will be financed, the timeline and what fans should expect when they attend games during construction.
How much will Toyota Stadium project cost?
The deal approved by the c]ity council will provide public financing to cover $182 million in renovations for Toyota Stadium. For the mixed-use development, the deal requires Hunt Sports Group to invest at least $110 million into office space and $231 million for the hotel and multifamily building.
Hunt said he expects the total project will cost between $1.1 billion and $1.3 billion.
How will the project be paid for?
The Frisco Community Development Corp. will issue $182 million in sales tax revenue bonds.
The FCDC will also pay $40 million to cover 20% of the debt service. The City of Frisco and Frisco Independent School District will pay $77 million, or 44% of the debt service, using a tax increment reinvestment zone. In Texas, a tax increment reinvestment zone allows a city or local government to use a portion of additional property tax revenue to fund projects in a specified area.
The Hunt family will pay the remaining 36% of debt service, or $65 million, as well as cover any cost overruns exceeding $182 million. The development agreement also extends the stadium lease for FC Dallas more than 30 years through the end of 2057.
For the mixed-use development, Hunt Sports will invest more than $1 billion, with the aid of economic development incentives approved by the city.
What incentives is Hunt Sports going to receive?
The Frisco Economic Development Corp. will provide a $25 million grant in two $12.5 million increments to reimburse Hunt. The city, FEDC and FCDC will also provide a grant of 50% of sales tax revenue generated by project construction material and service purchases for the mixed-use project. To receive the incentives, Hunt must complete the first phase of development consisting of the hotel, 30,000 square feet of retail and restaurant space and the multifamily building by the end of 2035. The second phase, consisting of 200,000 square feet of office space and a parking garage, must be completed by the end of 2037.
What is the timeline for the stadium upgrades?
Hunt expects construction to begin on the east side of stadium in the first quarter of 2025. The east side would reopen in summer 2026 while construction begins on the west side. That should be finished in the first quarter of 2028.
Hunt said the stadium will have a capacity for 11,000 to 11,500 fans while each side is closed, and it will continue to host high school football games and other events throughout the renovation.
"We don't want to displace any fans. One, this is our home, and our fans are so familiar with being there, but also it would be disruptive at the City of Frisco," Hunt said. "It's an economic base that they count on. They count on fans coming to games. They count on us putting on other events."
What upgrades are planned at Toyota Stadium?
Upgrades at Toyota Stadium will increase the 20,500-seat venue's capacity almost 17% by adding 3,400 seats to the underutilized north end. A fabric canopy will also be built over the east and west seating areas, as well as the majority of the north end, to add much-needed shade — critical during summer matches in Texas.
Other renovations will include upgraded club spaces and seating, luxury suites and new broadcast booths and press box areas. The reconstructed concourse structures will also include new public restrooms, concessions and retail outlets. The club also plans to install a new LED sports lighting system, along with major audio and visual upgrades.
Hunt said Toyota Stadium will have a 6,000-square-foot LED video board, the largest video board for a soccer-specific stadium in MLS.
The upgrades will increase club seating capacity by 175% and add 58% to suite capacity by adding two new suite levels.
Toyota Stadium will also increase concession points-of-sale by 59%, expanding the game-day menu and offering quicker service for attendees. A roughly 25% increase in restrooms is also projected.
What is the projected economic impact of the project?
Hunt described Toyota Stadium as a "community asset." He said the renovations and vision to make it a center for sports entertainment will draw more people to the city and attract businesses. He said the facility in its current state has an estimated economic impact of between $130 million and $150 million annually.
"I can't even imagine what the new building will do," he said.
The stadium currently has 17 other fields around it that are used almost year-round for soccer tournaments andinternational friendlies. Hunt said the hotel, multifamily building and office space will create jobs and encourage more people to buy homes in Frisco.
"The return on investment is real at Toyota Stadium," he said.