DALLAS — This story was originally published by our content partners at the Dallas Business Journal. Read the original version here.
FC Dallas is on the verge of a deal with the City of Frisco to move forward with renovations at the aging Toyota Stadium — but that's just part of what the owners of the Major League Soccer club want to do with the site.
Ultimately, they want to develop a mixed-use sports and entertainment district.
If the deal is approved by the Frisco City Council, the city would issue up to $182 million in sales tax revenue bonds to support upgrades at the 19-year-old stadium. Hunt Sports Group, owner of FC Dallas, would also move forward with a plan to turn the area around Toyota Stadium into something comparable to the Star at Frisco, a mixed-use development centered around the Dallas Cowboys practice facility.
Frisco City Council is scheduled to vote on the agreement at its Sept. 17 meeting. The upgrades to Toyota Stadium have long been under consideration, but this is the first time the grander, mixed-use scope of the Hunts' plans have been revealed.
Hunt Sports Group has proposed a "mixed-use vision" that, according to city documents, would include 1.2 million square feet of class A office space, a 180,000-square-foot upscale hotel with 200 rooms and a 200-unit multifamily high-rise with retail and restaurant space on the ground floor. The development would also include 30,000 square feet of additional retail and restaurant space, parking structures and complimentary civic spaces and urban streetscape.
The project would involve the redevelopment of existing surface parking lots on the west side of the stadium owned by Hunt Sports Group and a city-owned parking lot at the northwest corner of Main Street and Frisco Street, as well as the development of vacant land also already owned by the Hunts.
Hunt Sports Group's desire to build a mixed-use development around Toyota Stadium follows an ongoing trend of sports teams looking to turn their venues into year-round revenue generators. Texas Live, next to Globe Life Field where the Texas Rangers play in Arlington, is one local example of that in action.
What upgrades are proposed at Toyota Stadium
Upgrades at Toyota Stadium would increase the 20,500-seat venue's capacity by almost 17% by adding 3,400 seats to the underutilized north end. A fabric canopy would also be built over the east and west seating areas, as well as the majority of the north end, to add much-needed shade to the stadium.
Other proposed renovations 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.
Plans for upgrades to Toyota Stadium have been in the works for months, though club and city officials have stayed tight-lipped about details. Dan Hunt, president of FC Dallas, discussed some of the plans for Toyota Stadium in August and said he wants the renovated venue to host the MLS All-Star Game. At the time, he said the project faced "a really critical next 60 days or so."
The Frisco Community Development Corp. (FCDC) board previously passed a resolution on Aug. 15 calling for a public hearing regarding the possible issuance of bonds for upgrades at Toyota Stadium.
City of Frisco bonds considered for Toyota Stadium
The agreement set to be considered by the council outlines the financial terms of the public-private partnership. The FCDC would issue up to $182 million in sales tax revenue bonds to support stadium capital improvement costs. The bonds would be repaid with 44% coming from a tax increment reinvestment zone and 20% from the FCDC. Hunt Sports Group will repay 36% of the proceeds through bi-annual lease payments. The club would extend its lease at Toyota Stadium through 2057 as part of the deal. The stadium is owned by the city, which has worked closely with Hunt Sports Group in an existing public-private partnership.
Costs for stadium upgrades in excess of $182 million would be the responsibility of Hunt Sports Group, according to the city documents.
For the mixed-use improvements, Hunt Sports Group has requested economic development incentives "that are similar in scale and structure to what has been provided for other major mixed-use partnerships in Frisco," according to city documents. The incentives would be provided as reimbursements for infrastructure expenses incurred during the first phase of the mixed-use improvements.
Specifically, the FEDC would provide a $25 million grant in two $12.5 million increments to reimburse Hunt. The city, FEDC and FCDC would also provide a grant of 50% of sales tax revenue generated by project construction material and service purchases for the mixed-use commercial building and site infrastructure improvements.
The Frisco Independent School District board of trustees is supposed to consider changes to an existing agreement for the tax increment reinvestment zone at a Sept. 16 meeting. The FCDC and Frisco Economic Development Corp. will consider the agreement at a special called joint meeting on Sept. 17, prior to the city council meeting.
A spokeswoman for the city of Frisco could not be reached immediately for comment. In council documents, officials offered several reasons for how the deal benefits the city. They argue the agreement extends a successful public-private partnership, continues to build upon the city's brand as "Sports City USA," promotes downtown Frisco as an activity hub and marks a reinvestment in city assets.
The partnership between Hunt Sports Group, the school district and the city "has been mutually beneficial, resulting in increased sales tax and tourism revenues for the city, access to high quality and more cost-efficient athletic facilities for FISD, and availability of additional capital funding sources for Hunt Sports Group," a city memo reads.
Gina Miller, a spokeswoman for FC Dallas, said in an email Toyota Stadium "has been a special place where FC Dallas fans, college and high school football diehards, Frisco ISD students and music lovers have experienced incredible moments and created lifelong memories."
"It is now time to invest in Toyota Stadium to ensure that this venue, which is approaching 20 years old, continues to deliver a world-class experience for our fans, community, players and staff."
