PLANO, TEXAS — The Plano City Council has approved a development agreement to support the Texas Research Quarter (TRQ), a life sciences-focused innovation district. The first phase would involve redevelopment and new construction at the former Electronic Data Systems (EDS) headquarters, a 91-acre site that serves as the TRQ main campus. Plano is located approximately 20 miles north of Dallas.
The development agreement provides reimbursement to incentivize investment and development within a newly created tax-increment reinvestment zone (TIRZ), which contains the TRQ properties and other parts of Plano’s Legacy neighborhood. Total project costs are estimated at $4 billion, according to the Dallas Business Journal.
Future phases include additional redevelopment activity across the main campus, as well as the creation of an integrated multi-site district through development at adjacent and nearby properties. Dallas-based NexPoint, an alternative investment manager with a real estate arm, is spearheading the development.
“The city council approval is just the first step in a comprehensive plan to develop the TRQ into a world-class hub for life sciences,” says Eric Danielson, managing director and head of real estate development at NexPoint. “We are committed to collaborating with the community to build a dynamic ecosystem that will drive innovation, attract and grow top-tier talent, support groundbreaking research, and accelerate the production and delivery of important treatments to patients in Texas and beyond.”
Plans call for more than 3 million square feet of life sciences facilities on the main campus, including research and development facilities and Current Good Manufacturing Practice (CGMP) manufacturing facilities designed with flexibility to accommodate a broad range of life sciences companies. CGMP refers to regulations enforced by the U.S. Food & Drug Administration.
Undeveloped offsite parcels are expected to house additional life sciences facilities that will either be incorporated into the master plan in subsequent phases or be developed as build-to-suit projects to meet tenant customization requirements outside of the main campus facilities.
Plano’s Legacy neighborhood grew around the original EDS campus into a destination for corporate and regional headquarters for companies across a range of industries. The TRQ main campus is within walking distance of the Shops at Legacy, a mixed-use development with retail, dining, hospitality and entertainment. TRQ’s main campus will also include several acres of green space open to the public.
“As the life sciences industry continues to expand in the region, we are confident that the TRQ will emerge as a pivotal center, further solidifying the metroplex’s reputation as the ‘Third Coast’ for biotechnology research and manufacturing,” says Doug McDonald, director of economic development with the City of Plano.
NexPoint is pursuing related agreements with other local taxing entities, seeking to establish a public-private partnership that reflects unified support from multiple public-sector stakeholders. According to the firm, this expanded public-private partnership would unlock the full potential of the TIRZ and provide the funding needed to deliver world-class life sciences facilities and recruit major companies to Plano.
With participation from other taxing entities, the public-private partnership could be completed in the fourth quarter. The first phase of construction is expected to begin upon its completion.
— Kristin Harlow