Council previews proposed Garland soccer complex; TIF 3 amendment, bond plan draw council questions on South Garland

City staff and TIF 3 leaders presented a preliminary site plan, budget and financing approach for a proposed professional and youth soccer complex — anchored by a USL Championship club — on Feb. 3 and asked council to consider related amendments to the TIF number 3 project and financing plan.

Staff said the city acquired 64 acres near Holford and George Bush and that roughly 14 acres are unencumbered and available for commercial use and stadium development. The conceptual space plan shown to council indicated about 4 acres potentially for a stadium site, roughly 10 acres for commercial use and a larger area for a professional and youth soccer complex and supporting parking and parks.

The project budget presented totals $111,800,000 for all activity in the area. City staff broke sources into: land (city-owned; land acquisition cost cited as about $10,800,000), stadium funding (a proposed $43,000,000 from TIF 3, of which staff said approximately $39,000,000 would be financed with a TIF revenue bond and $4,000,000 would be a TIF cash reimbursement), about $7,000,000 in utility funds for stadium infrastructure, and a $25,000,000 budget for youth and recreational fields and practice complexes that staff said will require a CIP amendment. Staff said Holford road and Namon Forest Boulevard extension work will be part of the city’s obligations and that a separate design contract for city-responsible infrastructure and park elements was on the next day’s agenda.

Patrick Abel, chairman of the TIF 3 board, told council the board recommended updating TIF revenue projections using a conservative model and asked that bonds not be issued until the city signs a lease or an ownership group is named. Abel said the board recommended issuing $39,000,000 in TIF revenue bonds and $4,000,000 in TIF cash reimbursement for the complex design, and requested extending TIF 3’s termination date to Dec. 31, 2055 to support the financing schedule.

Matt (City CFO) presented conservative revenue projections for TIF 3 and an issuance plan. He said he used low growth assumptions (about 1.5% annual growth for base projections) to stress-test repayment, and described a plan that contemplates a 30-year bond for the stadium with the option to call the note early. Matt said the city would pursue a separate credit rating for the TIF revenue bonds rather than tying the issuance to the city’s general GO bond rating. Under the presented model, Matt said the board could consider issuing a $35,000,000 revenue bond (his slide referenced a $35,000,000 bond sized at 1.25 coverage) as part of the $43,000,000 TIF allocation; the presentation included a scenario in which the city built up reserves and could call the bonds early, saving interest.

Council members raised repeated questions about how revenue would be allocated among the TIF’s three areas (the original medical district, the Holford/North Garland area and South Garland). Deputy Mayor Pro Tem and other council members sought written assurances or a clear earmark to ensure South Garland sees benefits and is not left without funding if TIF revenues are used elsewhere. One council member said the TIF plan as proposed appeared to allocate roughly $88.7 million toward the medical district reserve, $43 million toward the stadium and left only about $10 million unallocated under the conservative projections. Matt replied that the TIF project plan has general-purpose allocations for north and south economic development and that staff could bring back a proposed earmark for South Garland at the TIF board’s next meeting; he also noted that other funding sources — including CIP funds and a potential economic development bond — could support South Garland projects.

Staff said next steps include returning Feb. 18 with a proposed ordinance and amended project and financing plan for council consideration and public hearing (staff noted the TIF board recommended the changes), presenting the design contract for city infrastructure on Feb. 4, and continuing to work on a lease and development agreement for stadium tenant responsibilities. No final council vote on TIF amendments or bond issuance occurred on Feb. 3; the TIF board recommended conservative projections and that bonds not be sold until lease/ownership terms are secured.