The Arlington City Council greenlighted a master agreement with the National Football League (NFL) team Dallas Cowboys to extend the latter’s lease at their home ground – the AT&T Stadium in Arlington, Texas, US – through 2055.
The team’s lease of the city-owned stadium, which opened in 2009, was set to expire in 2040 with an option to renew in the future. The agreement extends the team’s lease by an additional 15 years.
‘arlingtontx.gov’ stated that the above development will ensure the continued success of one of Arlington’s most significant economic drivers – the AT&T Stadium.
The Dallas Cowboys are a professional American football team based in the Dallas-Fort Worth Metroplex. The Cowboys compete in the National Football League as a member of the National Football Conference East Division.
The 80,000-capacity AT&T Stadium is a retractable roof stadium in Arlington, Texas, United States. It serves as the home of the Dallas Cowboys of the National Football League (NFL) and was completed on May 27th, 2009.
Why Lease Extension Matters?
The lease extension agreement will help both the Dallas Cowboys and the city to further secure their foothold and will also bring investments to improvise the stadium and the public infrastructure encircling the AT&T Stadium. It will also help in the facility remaining competitive, secure and in a position to stage major acts for decades to come.
AT&T Stadium Economic Impact Study
The AT&T Stadium’s economic impact is already substantial and is projected to grow. A newly released independent analysis by HR&A Advisors found that circa $324 million in annual economic impact in Arlington is presently generated from the Cowboys use and operation of the stadium.
The study further found that an estimated $9.7 billion for the Arlington economy will be generated from the stadium operations, fan spending during events at the AT&T Stadium and other associated effects following the extended lease term from 2026 through 2055. The team’s use and operation of the stadium will produce a nearly $460 fiscal impact for the City of Arlington.
‘arlingtontx.gov’ further stated that the revenues help the city continue to enhance the public services which include hiring additional police and firefighters, maintaining streets and building new roads and sidewalks, and improving parks, libraries and recreation centers.
Investment Details
Under the above agreement, the Dallas Cowboys will invest a minimum of $750 million in the ongoing maintenance, operation, and improvement of the stadium complex through the end of the extended lease term. The city will contribute up to $273 million (net present value) over a 20-year period through a maintenance and operations account. The revenue generated through voter-approved venue taxes already in place would fund the city’s contribution and not the city’s general fund, or new taxes. The team will front the costs for improvements that are eligible for reimbursement by the city over time.
The investment will fund improvements that enhance security, including upgrades to maintain high security measures to meet enhanced Safety Act certification standards from the U.S. Department of Homeland Security and will improve traffic flow, pedestrian safety and overall event operations that benefit the City and the local economy.
The maintenance and operation of the AT&T Stadium complex responsibility is with the Dallas Cowboys who will also lead the design and construction of all improvements, fronting the costs to ensure completion by 2043.
The agreement also:
- Extends the $2 million annual lease agreement and $500,000 annual naming rights payment to the city through 2055; and
- Extends the team’s commitment to charitable contributions of $500,000 a year for initiatives that support the local youth through 2055.
Visitors’ Tax
In 2004, the Arlington voters approved a half-cent sales tax increase, a two percent hotel occupancy tax, a five percent rental car tax, a 10 percent ticket tax, and a $3 parking tax to fund a new retractable-roof stadium that would bring the Cowboys to town. These taxes are largely paid by the visitors a number that has grown to nearly 16 million a year. In 2016, Arlington voters again approved the use of these same taxes to pay for a retractable-roof stadium for the Texas Rangers, now known as Globe Life Field. These tax revenues combined generate approximately $55 million a year. This revenue source is restricted by law to fund the voter-approved venue projects not any other City expenses.
Why not a Public Vote?
The Arlington voters authorized the use of the venue taxes in 2004, and again in 2016, to fund the approved venue projects. This includes the authority to fund the ongoing maintenance and operation (M&A) costs to the city-owned venue complexes. Because the agreement operates within that existing authority and does not extend collection of the venue taxes beyond 2048, no additional voter approval is required.
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