The Frisco City Council on Tuesday approved an amendment to the project and financing plan for Tax Increment Reinvestment Zone (TIRZ) No. 1.
With the change, the city will add two projects to the district, including a $16.5 million conference center.
The city will purchase the center from Hyatt Regency Stonebriar hotel, which is being constructed at Stonebriar Centre and is expected to be complete next year.
The conference center is expected to be a minimum of 40,000 square feet. It will include a grand ballroom of a minimum of 12,500 square feet, a junior ballroom of a minimum of 4,000 square feet and breakout rooms at a minimum of 9,000 square feet.
The hotel will have a minimum of 15 stories and have 295 rooms.
Nell Lange, assistant city manager, said debt supported from various sources will fund the conference center. That includes $3 million each from the Frisco Community Development Corporation and Economic Development Corporation, as well as $4.2 million from the Frisco Hotel/Motel Fund and $6.3 million from the TIRZ revenue.
The city will also add a 1,250-space parking garage to the list as part of an $18 million incentive agreement. The garage is being built as part of the mall and is expected to handle capacity for Kidszania at the mall and extra parking needs from Roughriders Stadium.
“We’ll have parking and an access easement in that garage for overflow parking so that venues on the west side of the venue can park in there,” Lange said.
The city will pay for the garage out of the city TIRZ revenue.
Lange said the debt for the garage will be paid out over 10 years and will be supported by TIRZ revenue.
Councilman Will Sowell said he is concerned about the city’s approach of providing significant incentive agreements for a parking garage when the owners of the garage make money off valet parking.
“From my experience of using a parking garage, the residents are paying for it, and they have to go to the third or fourth floor because the first two floors are reserved for valet, I don’t think that serves the public use,” Sowell said.
In addition the city will modify the boundaries of TIRZ No. 1 to include additional property located south of Rockhill Parkway and between Teel Parkway and the Dallas North Tollway.
This comes as the PGA begins building its 100,000-square-foot headquarters.
There will be a reduction in the TIRZ acreage for the golf course of about 16 acres from 601 to 585 to match the PGA’s projections of where facilities will be located.