Plano approves tax zone to help fund Stars arena at Willow Bend

Plano has put one of its biggest redevelopment tools behind a possible Dallas Stars arena at The Shops at Willow Bend, approving TIF Reinvestment Zone No. 6 on June 8. The nearly 900-acre district along the Dallas North Tollway could redirect future property and sales tax growth to help cover the city’s share of a project estimated at more than $1 billion.

In plain English, a tax increment reinvestment zone works by freezing today’s tax base and sending the new value created inside the district back into the project. Plano says the Willow Bend zone can generally last 15 to 30 years, with the exact term set through the public-hearing process. When the zone ends, the base tax values and the increment are redistributed to participating tax entities, so the growth generated at Willow Bend would not flow entirely into the broader tax rolls while the district is active.

The council also approved a non-binding letter of intent with the Dallas Stars and a $15 million economic incentive with Centennial, the owner of Willow Bend Mall. Under the reported framework, Plano could contribute up to $700 million through bonds backed by a 30-year TIRZ if the project tops $1 billion in total development costs, while Dallas Sports & Entertainment LP would cover any remaining expenses. The city would own the site and the arena and lease it back to the Stars under an initial 30-year lease. Coverage of the plan has put the broader arena-and-district investment at as much as $3 billion.

The stakes extend far beyond one building. The Stars’ current lease at American Airlines Center is set to expire in 2031, and reported timelines suggest demolition at Willow Bend could begin in early 2027, with retail and restaurant space opening in phases over several years or around the arena’s debut. The proposed district could add sports and entertainment venues, retail, restaurants, residential development, public spaces and related infrastructure, turning a fading mall site into a much larger redevelopment gamble.

For west Plano, that could mean new traffic, higher land values and a stronger retail corridor. It could also mean years of public money being tied to a regional entertainment project whose payoff will be measured not just in arena nights, but in whether surrounding neighborhoods and taxpayers see lasting returns. Plano’s own TIF page shows four active zones already in place, including East Plano, Cotton Belt/Silver Line, Collin Creek and Legacy, making Willow Bend the city’s latest and most expensive bet on future growth.