The company building the 20,000-seat Sunset Amphitheater near U.S. 75 and State Highway 121 is raising another $60 million to finish it, and McKinney leaders signed off Monday on the deal that makes it possible.
In a joint meeting Oct. 5, the City Council and the boards of the McKinney Economic Development Corporation and McKinney Community Development Corporation took up an amended and restated incentive and development agreement with VENU Holding Corporation, the company formerly known as Notes Live, along with a separate protection agreement for the project.
The Dallas Morning News reported that the council voted to let the transaction go forward.
Why more money is needed
The project has grown since it was announced. "Originally it was about a $220 million project. Now we're at about $330 million," City Manager Paul Grimes said, according to The News. "They do have some financing challenges."
Robert Mudd, a VENU senior vice president, told the council that a statutory trust connected to the land did not work out as the company had expected, the paper reported. A company spokesperson declined to say more about it.
The company found another route through STORE Capital, a real estate investment trust based in Arizona. Under that arrangement, VENU sells the land, uses the proceeds to finish construction and then buys the property back next summer, after the venue opens. The original agreement restricts transfers of the property, so the deal required sign-off from the city and both corporations.
What the city says it got
City spokesperson Aschelle Morgan said VENU is still responsible for finishing and running the venue. "The $60 million from STORE Capital's purchase is private capital and does not represent any new public investment," she said in a statement quoted by The News.
