Title
Consider/Discuss/Act on an Ordinance Amending the Fiscal Year 2025-2026 Annual Budget to Provide Funds for the Sunset Amphitheatre Project
Summary
COUNCIL GOAL: Enhance the Quality of Life in McKinney
(5A: Create Affordable Recreational and Cultural Arts Activities For
All Ages Throughout the City)
MEETING DATE: September 16, 2025
DEPARTMENTS: City Manager’s Office
Legal Department
Financial Services, Budget
CONTACTS: Jennifer Arnold, Assistant City Manager
Mark Houser, City Attorney
Mark Holloway, Chief Financial Officer
RECOMMENDED CITY COUNCIL ACTION:
• Approve Ordinance.
ITEM SUMMARY:
• This ordinance amends the Fiscal Year 2025-2026 Annual Budget to provide funding for the Sunset Amphitheatre Project.
BACKGROUND INFORMATION:
• Venu Holding Corporation (successor to Notes Live, Inc.) is developing the Sunset Amphitheatre, a new, state-of-the-art entertainment venue located within Reinvestment Zone No. 1, at 2000 Gateway Boulevard (Sunset Amphitheatre).
• The Sunset Amphitheatre Project is part of a broader public-private partnership designed to promote local economic growth, increase tourism, and enhance the City’s entertainment and hospitality offerings.
• The City of McKinney and its economic development entities (MEDC, MCDC) previously approved a Chapter 380 Agreement with the developer (the VENU Agreement), outlining performance-based economic incentives tied to project completion and operation milestones.
• The proposed budget amendment helps to support the financial obligations of the City under the VENU Agreement.
FINANCIAL SUMMARY:
• This ordinance amends the Fiscal Year 2025-2026 Annual Budget to provide funding for the Sunset Amphitheatre Project by appropriating $9,400,000 in the TIRZ 1 Fund pursuant to the Chapter 380 Economic Development Agreement and Project Plan Implementation Agreement for the Sunset Amphitheatre Project considered by the TIRZ Board on October 21, 2025 (TIRZ Agreement).
• This appropriation of funds to the Sunset Amphitheatre Project serves as the Council’s agreement with the TIRZ Board’s consideration of the Chapter 380 Economic Development Agreement and Project Plan Implementation Agreement for the Sunset Amphitheatre Project with the City of McKinney for a total amount not to exceed Forty Million Dollars And No/100 ($40,000,000.00).
BOARD OR COMMISSION RECOMMENDATION:
• At the October 21, 2025 Reinvestment Zone No. 1 Regular Meeting (held earlier tonight), the TIRZ Board considered a Chapter 380 Economic Development Agreement and Project Plan Implementation Agreement for the Sunset Amphitheatre Project with the City of McKinney for a total amount not to exceed Forty Million Dollars And No/100 ($40,000,000.00) for payment of the City’s obligations under the VENU Agreement, as follows:
|
Fiscal Year |
Maximum Aggregate of Grant Payments |
Payment due date |
|
2025-26 through 2026-27 |
$9,400,000 |
In accordance with Section 9.8 of VENU Agreement. |
|
2027-28 through 2041-42 |
$30,600,000, subject to the Annual Cap described below. |
In accordance with Section 9.8 of VENU Agreement. |