TIRZ board approves Chapter 380 funding package to help finance Sunset Amphitheater infrastructure

The City of McKinney Reinvestment Zone Number 1 board on Tuesday approved a resolution to allocate TIRZ/TIRS funding to help support the Sunset Amphitheater public‑private project.

Assistant City Manager Jennifer Arnold told the board the request would enable the TIRZ to cover a portion of the city’s financial obligations in the project master agreement. Arnold summarized the elements staff proposed to allocate: up to $3,000,000 to cover certain city impact fees, up to $6,500,000 for off‑site roadway and traffic infrastructure qualified under the project plan, and a mechanism to allow pass‑through TIRZ/TIRS funds from the property over time (staff cited an illustrative figure of up to $30,600,000 over the program period, subject to development triggers and performance requirements).

Arnold explained that the TIRZ commitment is structured to be performance‑based: revenues generated on the property would be used to reimburse the city over time subject to triggers contained in the master agreement. She emphasized the item before the board is an intergovernmental funding decision between the board and the city, not a direct contract with the private operator.

Board members asked about the potential impact of pending litigation involving national venue operators. Mark Hauser, city attorney, said the litigation (referenced by board members) had not changed the TIRZ timeline or the structure of the city’s obligations; the venue developer has the incentive to operate and book acts in order to trigger payments. Board members also asked about traffic, noise and the city’s readiness for the projected visitor volumes; staff said engineering and traffic work are underway and the project includes required off‑site improvements and signals.

The motion to approve the staff recommendation passed 8‑1 on a roll call/raised‑hand vote.

Staff will return as the master agreement and subsequent performance triggers require additional approvals and implementation steps.