Uncategorized
Frisco, state offer more than $160 million in incentives in PGA headquarters, Omni resort deal  | Real Estate | Dallas News

Frisco, state offer more than $160 million in incentives in PGA headquarters, Omni resort deal  | Real Estate | Dallas News

‘Sports City’

Mayor Jeff Cheney said he sees the project as a way to further solidify Frisco’s “Sports City USA” branding. The city is home to the Dallas Cowboys’ headquarters at The Star and to other professional sports teams.

The deal also allows Frisco to partner with an international brand and install a strong draw at the city’s northern edges.

“This will be a flagship project for the northern part of our city,” Cheney said. “This area is largely undeveloped. And so we’ve been for a long time looking for an anchor to this part of the city, and this will provide that anchor. We’ve been looking to have a destination-type hotel to kind of round out our tourism.

“We were always lacking a resort-style destination hotel, which this will provide the answer for,” he said, adding that the project also will fill a need for additional convention space.

“But also, the grander vision is we’re going to be partners with potentially transforming an entire sport. For the sport of golf, the epicenter will be in Frisco.”

Some form of the project has been under discussion for at least four years.

Darrell Crall, PGA chief operating officer, noted that in the fall of 2014, Northern Texas section director Mark Harrison broached the idea of developing a relationship with Frisco and creating a golf course.

In May, the association issued a request for proposals for a new headquarters and got 212 nibbles.

In August, in response to rumors about a Frisco deal, then PGA of America CEO Pete Bevacqua said the move was “certainly a possibility.”

When Omni joined the talks this spring, at the urging of officials with Stillwater, the project included neither the hotel nor conference center, said Blake Rowling, president of TRT Holdings, parent company of Omni. He is Robert Rowling’s son.

The PGA Omni will be a short drive from the Omni attached to The Star in Frisco.

But the brand, which is undertaking a major renovation of its Barton Creek resort near Austin, saw a need for a new resort in the northern reaches of the metro area.

For Omni, the as-yet-unnamed Frisco hotel would be its 15th resort and at least its fourth affiliation with a major professional sport.

“We’re one of the largest operators of resorts in the country,” said Rowling. “We have over a dozen resorts and over 20 golf courses we operate. And being a hometown company here in Dallas, and having a relationship with … the Stillwater guys prior to this deal, it was an easy phone call for them to make.”

‘Compelling vision’

Settling on Frisco, after the full scope of the deal came together, was also an easy call, according to Crall.

“The city of Frisco presented a very compelling vision that smartly merged our championship aspirations with a real focus on community and junior golf, with an opportunity to have a world-class headquarters,” Crall said, adding that the region’s central location and ease of air travel added points to Frisco’s bid.

“We have an opportunity to put a stake in the ground for championship golf in Frisco, Texas, in that incredibly attractive market.”

The association also noted Frisco’s ranking as the “best place to live” by Money magazine,

“Their big dreams for the future created a very compelling case,” Crall added. “We believed that …having a headquarters in Frisco made all the sense in the world.

Staff writer Nanette Light contributed to this report.

The PGA of America will leave its longtime home in Florida and relocate to Frisco. Key aspects of project:

600 acres: Total campus

540 acres: Space for golf courses

$520 million: Estimated cost of total project

$163.8 million: Minimum potential state and local incentives

100,000 square feet: PGA of America headquarters

$30 million: Minimum cost of headquarters

127,000 square feet: Conference center owned by the city

500 rooms: Omni resort owned by Omni and investors

40,000 square feet: Retail space

35,000 square feet: Clubhouse

100: Minimum number of workers in new headquarters

2: 18-hole championship golf courses, open to the public, owned by the city

1: 9-hole course, open to the public, owned by the city

2022: Tentative opening date

SOURCES: Omni Hotels & Resorts; PGA of America; city of Frisco

INCENTIVES AT A GLANCE

To bring the PGA of America to Frisco, the city and state offered:

$13.3 million from the city of Frisco

$2.5 million from Frisco Economic Development Corp.

$14.3 million in long-term incentives from Frisco Economic Development Corp.

$52 million to $74 million from city of Frisco in long-term performance incentives

An estimated $62.5 million from the state in hotel, state and beverage taxes

SOURCE: City of Frisco

BIG TAX BREAKS IN TEXAS

These are among the largest tax incentives awarded to companies in Texas:

$802 million to Nebraska Furniture Mart to build retail superstore in The Colony (2013): The city spent $291 million on roads, utility upgrades and an on-site parking garage; $261 million to offset store’s building expenses; and $250 million to assist with a second “super retail store” at the site.

$600 million to Texas Instruments to build a chip plant in Richardson (2003): Property tax abatements over a 24-year period from the city of Richardson, Collin County, Plano ISD and Collin County Community College District.

$460 million to Exxon Mobil and Saudi Basic Industries Corp. to build a petrochemical plant in San Patricio County (2017): Property tax abatements from Gregory-Portland ISD and San Patricio County; Texas Enterprise Fund grant of $6.35 million.

$440.5 million to build Cowboys Stadium (now AT&T Stadium) in Arlington (2004): Voters approved $325 million in bonds to help pay for the stadium. The total also includes creation of a tax increment reinvestment zone in the area in 2006 that called for $115.5 million in road and flood control improvements.

$250 million to FedEx to build logistics hub in Fort Worth (1996): City of Fort Worth and Alliance Airport Authority issued $250 million in tax-exempt bonds to cover FedEx’s construction costs.

$233.4 million to Samsung to build a semiconductor plant in Austin (2006): Package included a $10.8 million grant from Texas Enterprise Fund; Manor ISD property tax abatements of $115 million; city of Austin abatements of $62.9 million; Travis County abatements of $44.7 million.

$146.7 million to Facebook to build data center in Fort Worth (2015): Package includes rebates from city of Fort Worth and Tarrant County on real and business personal property taxes spanning 20 years.

$135 million to build The Ballpark in Arlington (1991): Voters approved spending $135 million in sales taxes to build the home stadium for the Texas Rangers. The city paid off the debt  10 years early.

$133 million to Toyota to build truck assembly plant in San Antonio (2003): Package included $60 million from the state for training, infrastructure and employment services, and remainder from the city of San Antonio and Bexar County in property tax abatements, land and site preparation and a training facility.

$113.8 million to Cabela’s to build retail stores in Fort Worth and Buda (2004): The state provided $600,000 from the Texas Enterprise Fund and $20 million for highway improvements in Buda. Tax increment financing to reimburse the company for upfront costs amounted to $57.2 million in Fort Worth over 20 years and $36 million in Buda.

SOURCES: Dallas Morning News research; Good Jobs First subsidy tracker database; Austin American-Statesman; Fort Worth Star-Telegram; Houston Business Journal; San Antonio Express-News;  and Texas governor’s office

This content was originally published here.

Leave a Reply

Your email address will not be published. Required fields are marked *

SPIN TO WIN!

  • Try your lucky to get discount coupon
  • 1 spin per email
  • No cheating
Try Your Lucky
Never
Remind later
No thanks