The Neiman Marcus is seen with empty spots in the parking garage at The Shops at Willow Bend on Thursday, Feb. 5, 2026, in Plano.
Smiley N. Pool/The Dallas Morning News
The Plano City Council will vote Monday on a landmark agreement to help fund and incentivize the Dallas Stars’ planned move to a new billion-dollar arena and entertainment district at the Shops at Willow Bend site.
The agreements ask city leaders to consider new sources of tax funding, contribute hundreds of millions of dollars to the $1 billion arena project and lease the space to the NHL franchise for three decades. If approved, it could welcome Plano’s first major league sports team.
The team’s move, driven by the pursuit of a more sustainable business model, comes after a monthslong legal spat between the Stars and the Mavericks. The latter announced Monday the team will also move from the American Airlines Center to a new arena and entertainment district at the former Valley View site.
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“We are excited about the Dallas Stars’ interest in a potential future at The Shops at Willow Bend and look forward to conversations about what this could mean for Plano,” Plano City Manager Mark Israelson said in a statement in response to the Stars’ announcement.
Related: Stars pick Plano for new arena site as downtown Dallas faces twin sports team departures
But city officials will not comment on agenda items prior to the council’s consideration, he said.
Plano City Council will be asked to approve four separate measures regarding the move at a 7 p.m. council meeting Monday. Here’s what to expect.
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Details of the deal
The council will vote to approve a nonbinding letter of intent between the Stars and the city to negotiate the terms for an arena, which is planned to anchor a larger sports, entertainment and mixed-use district. The city imagines “a vibrant destination that complements the arena and delivers long-term value to the surrounding community,” according to city documents.
Under the proposed agreements, the city would own the site and the arena, and enter into an initial 30-year lease agreement with the team. The terms are to be negotiated, according to city documents.
Traffic passes on West Park Boulevard near an entrance to the The Shops at Willow Bend on Thursday, Feb. 5, 2026, in Plano.
Smiley N. Pool/The Dallas Morning News
The agreement requires the company to redevelop the property to include a multipurpose facility “for a premier national level professional sports team,” at least one conference hotel and a visitor’s center for tourists, among other terms.
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The agreement also includes terms for collaborating on transportation improvements and supporting community initiatives like youth sports and small business engagement.
The cost of constructing the arena is estimated at around $1 billion or more, according to city documents, and the city plans to contribute $700 million in funding through bonds backed by revenue from a tax increment reinvestment zone.
Tax increment reinvestment zone
Plano’s council will also hold a public hearing and vote on creating a new tax increment reinvestment zone at the mall site Monday. This economic development tool is historically used to finance public improvements in “blighted or underdeveloped areas” in need of reinvestment, according to the city’s website.
After a public hearing process, a reinvestment zone can be created and tax revenue added from new development and redevelopment. Investment in the district is poured back into it by the city through projects like demolition, site preparation or infrastructure development.
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Related: What to know about Plano’s Shops at Willow Bend, Dallas Stars’ potential new arena site
These zones generally last 15-30 years, but the one under consideration by the council would last 41 years. The council will vote on the final project and finance plan after a board of directors is named, according to city documents.
Plano currently has four tax-increment finance zones: East Plano, DART’s Silver Line rail project, Collin Creek Mall and the Legacy district.
The former Valley View mall site, where the Mavericks are planning their new arena and entertainment district, sits within a tax-increment financing district built to redevelop underutilized malls in Dallas, including the Red Bird mall in southern Dallas.
$15M incentive, mall demolition
The council will also consider Monday a $15 million incentive agreement between the city and Centennial Waterfall Willow Bend, LLC, owner of the Shops at Willow Bend site. The ownership group includes Dallas-based Cawley Partners, Dallas-based Centennial and New York-based Waterfall Asset Management.
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Aerial view of The Shops at Willow Bend, with the Dallas North Tollway at bottom, on Thursday, Feb. 5, 2026, in Plano.
Smiley N. Pool/The Dallas Morning News
If approved, the funds will help cover the cost of the visitor’s center and demolition at the mall. The property owner, according to city documents, has proposed demolishing the inline space of the mall, theater, Dillard’s and Crayola buildings. The city will also waive certain fees under the proposal.
Potential venue tax
Finally, the city will vote on a resolution that would set in motion plans for an election on a venue tax to help fund the project. If the state comptroller approves the plan, the city could ask voters to consider a combination of several kinds of taxes, aimed at visitors, on things like car rentals, hotel occupancy, event parking, event admissions and facility use per game and player.
The NHL team’s plans for relocation come at the heels of AT&T’s announcement earlier this year that the telecommunications giant is moving its headquarters from downtown Dallas to Plano, a city known for attracting corporate relocations.
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To secure AT&T, the council approved a $20 million incentive package, the largest in its history, and a lengthy tax rebate.
“Plano has built a reputation as a city that welcomes world-class partners and community-focused investment,” Plano Mayor John Muns said in a statement. “The Dallas Stars are an iconic North Texas organization, and we are encouraged by their interest as conversations move forward.”
Staff writer Nick Wooten contributed to this report.