Plano Prop A venue tax to help fund new Dallas Stars arena fails

PLANO, Texas - Plano residents rejected a venue tax measure that would have helped to fund a new Dallas Stars arena.

Plano voting on Proposition A

What we know:

With 100% of the precincts reporting, roughly 55% of Plano voters said they were against Prop A, with only 45% supporting the tax.

If it was approved, Plano leaders planned to use the venue tax to help fund the new Dallas Stars arena that will be built at the current Shops at Willow Bend Mall site.

The taxes would have been applied to car rentals, hotels, parking, admissions and other venues.

Plano leaders believed the venue tax would generate $700 to $900 million in revenue for the city. The city would cap contributions from the venue tax towards the new Stars arena at $700 million.

The other side:

Some Plano residents made it clear during the election cycle they were not in favor of helping fund the Stars' new arena.

A political action committee called STOP The Stars Arena PAC held multiple events expressing their opposition to Prop A, citing potential property tax increases as more improvements are made to the arena site.

"One of the things that we’re hoping to get across to everyone is there’s a lot of unanswered questions. The city hasn’t built a financing plan, they haven’t built a tax revenue plan, we don’t even have a site plan, so they can’t create the traffic study. There’s some very basic things that are missing, but we’re rushing to a vote on November 3rd," Bob Healey, who is on the board of the STOP The Stars Arena PAC, said in October.

Residents also expressed concerns about the Tax Increment Reinvestment Zone, an already-approved measure that will collect tax dollars near Willow Bend and the Dallas North Tollway to buy back bonds.

Plano Mayor John Muns and Dallas Stars President & CEO Brad Alberts have both pointed to the idea that the venue taxes would affect visitors and not Plano residents themselves.

What they're saying:

"While we are disappointed that Proposition A did not pass, we are confident in the long-term vision for a city-owned arena project and the positive impact it will have on the City of Plano. As Proposition A was a component of a broader financing strategy, we look forward to continuing our partnership with the City of Plano as it pursues a project finance zone to be created by the Texas legislature. We remain committed to advancing this important project that will create jobs, attract new visitors, and generate economic benefits for the Plano community for decades to come," the Dallas Stars said in a statement.

"The proposed redevelopment at The Shops at Willow Bend remains an important opportunity for our community. We are committed to thoughtful reinvestment and responsible stewardship of taxpayer dollars as we consider what comes next. I appreciate everyone who made their voice heard in this election," Mayor John Muns, City of Plano, told FOX 4 in a statement.

"Without authorization for these venue taxes, the proposed financing approach would need to be reassessed before City Council considers any actions related to the arena. Our focus will be on providing them with a clear understanding of the financial implications and the options available moving forward," Mark Israelson, Plano City Manager, said.

What's next:

The new Dallas Stars arena in Plano is expected to be completed by the start of the 2031 season. Its look will be created by HNTB, a firm hired by the team in August to oversee its design.

Without Prop A, Plano leaders said they would look at alternate ways to fund the new arena.

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