Precisely. Which is why the line touted by some that Frisco HAD to do this deal in order to spur development on that site (or else, what?, that property is just going to sit vacant for 30 years?) is preposterous on its face. At one of the prime intersections in the city, the City decided to dedicate dozens of acres to a vanity project that will neither bring significant numbers of jobs or generate significant revenue (meaning, JerryLand itself, although time will tell if The Scar in Frisco will ever amount to anything more than Frisco Square or Jerry's ego-driven version of Victory Park). Instead, they give Jerry Jones free advertising on the Tollway.
And don't try to compare this one with Valley Ranch (built when JJ was re-building the Cowboys on his credit card)
This was done with a special tax district. The property tax from this disctrict pays back the bonds for this project. The does NOT come out of the exorbitant property tax the FISD already levies on our property (yes, I know it is the lowest around...still think it is high)
Once the bonds are paid off - the FISD gets those property taxes and those taxes (as I understand it) are grandfathered and NOT subject to Robin Hood (where a portion of our taxes go to the state to be given to districts with less means - for the newbies to Texas).
But - let's say the FISD bought land and built a less expensive stadium (say... $25 million - constructions costs have jumped significantly since 2005). Well the bond repayment of this WOULD come of out the property taxes. Plus the M&A.
With the stadium deal - we get to use a first class football stadium when needed (and I'm with Pilot, the "mulit-use" spin is for PR), we don't pay ongoing expenses and no funds come out of the FISD budget for the construction expense. And the way the lease deal works, the lease revenue goes to FISD and is not subject to Robin Hood.
It's not just a football stadium. It is an entire complex with shopping, restaurants, hotels and business towers. That is a ton of revenue coming to Frisco on an ongoing basis.
TAXES?? Haha. You know everything from the tax district has come back to ask for longer periods of no or reduced taxes long after the original agreement was set to expire. If everything worked ... but the winners know they have the city where they want them.