Plano Independent School District has agreed to contribute up to $250 million in future property tax revenue toward a redevelopment project anchored by a new arena for the Dallas Stars, even as the district struggles with a $44.8 million budget deficit.
The agreement, approved by the Plano ISD Board of Trustees in August, commits the district to contributing a portion of future property tax revenue generated within a designated redevelopment zone. The money will support public improvements associated with the proposed Dallas Stars arena at the former Shops at Willow Bend site.
The district’s contribution would come in addition to a proposed $700 million commitment from the City of Plano, bringing potential public financing associated with the redevelopment to as much as $950 million.
Under the agreement, Plano ISD would contribute 50% of the growth in maintenance and operations property tax revenue collected within the designated Tax Increment Reinvestment Zone (TIRZ), capped at $250 million. The district estimates that contributions will occur over approximately 18 years.
Plano ISD officials maintain that the arrangement will not divert existing classroom funding. Under Texas’ school finance system, property-wealthy districts must return a portion of their local property tax revenue to the state through a process known as recapture, or “Robin Hood.”
The district argues that its contributions to the redevelopment zone will be offset by reductions in recapture payments, allowing more locally generated tax dollars to remain in Plano.
Officials project the arrangement could generate approximately $438 million in financial benefits for the district over 18 years, exceeding its estimated contribution by $188 million. However, those projections depend on future property values, economic conditions, and state school finance laws.
The agreement also provides opportunities for the district to use facilities developed through the project, potentially including the arena for graduation ceremonies.
The arrangement has nevertheless raised questions about whether a financially struggling school district should participate in subsidizing a professional sports development, particularly one benefiting a franchise owned by billionaire businessman Tom Gaglardi.
Plano ISD’s $44.8 million structural budget deficit remains unresolved, and district officials acknowledge that the redevelopment agreement is not intended to address immediate operating expenses.
The arena proposal is also subject to a separate public vote. Plano voters will decide whether to approve a venue tax package that would help finance the city’s contribution to the project.
If the development moves forward, the Dallas Stars would relocate from the American Airlines Center in Dallas to a new arena in Plano.
For now, district officials are defending the arrangement as a long-term economic investment, while critics question the use of school district tax revenue to support a professional sports franchise.