Plano City Council has approved a deal that lets Plano Independent School District contribute up to $250 million toward a new Dallas Stars arena.
Council votes to lock in school funds
On Monday night, October 12, 2026, the council passed an interlocal agreement with Plano ISD. The school board had already approved joining the tax zone over the summer.
Under the pact, the district will give half of its captured tax growth from a nearly 900-acre Tax Increment Reinvestment Zone each year. The total is capped at $250 million or 25 years, whichever comes first. The zone runs until the end of 2052.
How the money works
Officials say the $250 million does not cut current school budgets. Because Plano ISD is a property-rich district, it normally sends some tax money to the state through Texas’s recapture system.
Directing those dollars into the local arena project instead means the funds stay in Plano rather than going to poorer districts across the state.
What schools get in return
In exchange, Plano ISD can use the new arena for free for graduations, career programs, internships and other district events. The only costs would be shared utilities, maintenance, and staff. Mayor John Muns, a former school trustee, has said hosting graduations in the city would be meaningful.
Bigger arena picture
The city had already pledged up to $700 million of its own for the roughly $1 billion arena at the former Shops at Willow Bend site. The full entertainment district is estimated at about $3 billion.
Voters will decide on November 3 whether to approve Proposition A, a package of venue taxes on hotel stays, car rentals, tickets, parking and more that could raise another $700-$900 million. Early voting begins October 19.
The agreement does not change the city’s $700 million commitment or the zone boundaries. Critics argue the money could better support education statewide, while supporters call it a way to keep tax growth local and bring the NHL team to Plano.
