Frisco city leaders are set to weigh a proposed economic development agreement Tuesday that would clear the way for a 250-room hotel and 15,000-square-foot convention center next to Toyota Stadium, along with 30,000 square feet of new retail and restaurant space and parking garage improvements across the soccer campus.
The agreement, first reported by Frisco on October 15 and later covered by CBS Texas, identifies DP6 Hotel & CC as the developer behind the project, which would rise on the campus surrounding Toyota Stadium, the home of FC Dallas. Under the proposed Chapter 380 agreement submitted this October, the developer — listed in city filings as D96 Hotel & CC, LLC — would receive 50% of the city hotel occupancy tax collected by the new hotel for up to 10 years, capped at $5 million, according to a city memo. The city would not forfeit any land or city sales tax revenues under the arrangement, and the $5 million rebate serves as a ceiling rather than a guaranteed payout.
Frisco would also waive 50% of city development fees tied to improvements covered by the agreement, per the CBS Texas report. The developer, meanwhile, would be on the hook for application-related consultant and legal costs.
State Incentives Add a Second Layer of Tax Breaks
Beyond the city-level rebate, Frisco plans to apply for state incentives through the Texas Qualified Hotel Project program, which would let eligible state hotel and sales taxes generated by the project flow from the state through the city to the developer if the proposal wins approval. The CBS Texas report notes Frisco would use no city funds for those state incentive payments. Under Texas Government Code Section 2303.5055, a municipality participating in the program may agree to rebate, refund, or pay eligible taxable proceeds for no more than 10 years; eligible proceeds can include hotel occupancy, ad valorem, sales and use, and mixed beverage taxes, according to Justia Law.
City officials and the proposal itself frame the hotel and convention center as a draw for more visitors, meetings, and events to the Toyota Stadium campus, though any grant payments would depend on the project meeting performance requirements and generating the applicable tax revenues.
Building on a $182 Million Stadium Overhaul
The hotel proposal builds on mixed-use development agreements the city approved in September 2024, when the Frisco City Council signed off on a $182 million public-private partnership to renovate Toyota Stadium and extended FC Dallas's lease there through December 31, 2057, as Hoodline reported at the time. That renovation was structured with 44% funded through Tax Increment Reinvestment Zone #1 ($80.08 million), 36% funded by FC Dallas parent Hunt Sports Group via lease payments ($65.52 million), and 20% funded by the Frisco Community Development Corporation ($36.4 million), according to WFAA.
Costs have since grown. In April, the council approved an additional $9.26 million in public-private funding to cover $7.5 million in seating bowl repairs and $1.75 million in Wi-Fi system restoration, pushing total venue modernization costs above $191 million, per Local Profile. Last month, FC Dallas debuted the completed east side of the stadium, featuring a new 12,000-square-foot premium club — a major milestone in an overhaul targeted for completion in early 2028, WFAA reported.
Part of a Billion-Dollar Vision for the Campus
Toyota Stadium opened in August 2005 as one of Major League Soccer's earliest soccer-specific venues, and in 2018 it folded the National Soccer Hall of Fame directly into its structure, according to the City of Frisco. The hotel proposal comes amid a broader master development plan the city announced in September 2024, aimed at attracting more than $1 billion in total private investment around the 145-acre stadium complex.
Frisco has branded itself “Sports City USA,” hosting headquarters and facility footprints for the PGA of America, the Dallas Cowboys at The Star, FC Dallas at Toyota Stadium, and the Dallas Stars. The stadium campus also carried international weight in 2026: local officials confirmed in May that Toyota Stadium and its surrounding soccer complex would serve as the official team base camp for Sweden's national team during the 2026 FIFA World Cup, as Hoodline reported in the spring.
Commercial activity around the stadium has already been picking up, with dining spots including Chito's Authentic Mexican reopening nearby after a two-year hiatus earlier this month. Frisco city leaders are expected to take up the hotel agreement Tuesday.
