The renovation costs will be covered by sales tax generated by the facility.
IRVING, Texas — Improvements to the 6-year-old Toyota Music Factory in Irving were unanimously approved Thursday by the Irving City Council, but Irving residents themselves will foot the estimated $31 million bill. I was warned that this would not happen.
Since ZZ Top officially opened Toyota Music Factory in September 2017, the venue has been a financial success by all accounts. The City of Irving owns the land and buildings, and the tenants generate more than $1 million in sales tax revenue annually.
So why did the Irving City Council pass an additional $30 million request on Thursday?
“This is a lot of money for a six-year-old building,” one resident complained when the Irving City Council asked for public comment before the vote. But the unanimous vote was explained like this.
“Like anything else, we are in a competitive environment and are always looking for ways and opportunities to improve,” Assistant City Manager Philip Saunders told WFAA.
Brookfield Asset Management is the new property management company, Sanders said Thursday night, as he explained to the audience at City Hall. In conversations with city planners, they agreed that improvements were needed to the Toyota Music Factory site. The cost of the improvements will be paid up front by Brookfield and reimbursed from sales taxes generated by people visiting the city's music venues and restaurants, rather than through additional taxes that the city of Irving imposes on Irving residents.
“Brookfield Properties is funding it. It's a city-owned facility, so when Brookfield Properties pays for it, it comes from the revenue that Brookfield Properties itself generates,” Sanders said. We will pay Brookfield back.”
Initial construction will include an estimated $6.3 million in improvements to the plaza and outdoor stage, new signage and architectural graphics, and storefront enhancements for some tenant spaces, according to the City of Irving.
The proposal also allows Brookfield to seek reimbursement of up to $25 million for improvements to leased space from anchor tenants.
“Redoing the plaza simply involves making improvements to some of the leased spaces and improving the customer experience throughout the facility,” Sanders said.
According to the City of Irving, Toyota Music Factory hosted 167 live performances last year alone. Urban planners are now betting that the next 30 years, with mechanisms for continuous improvement, will be financial music to their ears, too.
“The Toyota Music Factory in Irving is ushering in a new era of entertainment in North Texas,” said Mayor Rick Stopfer. “Already a huge success with our award-winning amphitheater, world-class entertainment and international cuisine, the planned redevelopment of the plaza and outdoor areas will revitalize the entire space, making it even more spectacular and dynamic.” It creates a great visitor experience.”
