$4 billion life sciences project in suburban Texas gets approval

PLANO, Texas – This article was originally published by our content partners at the Dallas Business Journal. You can read original article here.

The Plano City Council approved an economic development agreement between NexPoint and the city for the first phase of a future life sciences center located on the former Electronic Data Systems campus.

At the Aug. 26 meeting, council members voted unanimously to authorize up to $15 million to support the $4 billion life sciences complex. It is expected to redevelop and breathe new life into an area in Plano's Legacy that was one of the headquarters of Ross Perot's information technology company, EDS.

The first phase of the 91-acre campus, named Texas Research Quarterly as of May 2023includes the conversion of most of the main building and the construction of a new pharmaceutical manufacturing facility. Dallas-based development company NexPoint Development Company LP purchased the site in 2018.

Plano's latest development deal marks the next step in advancing the mega project to the finish line. it creates a tax increment reinvestment zone, or TIRZfor the first phase of the project. The city has also agreed to contribute 65% of property taxes levied on the site, not to exceed $15 million overall. Additionally, the agreement stipulates that funds reimbursing development costs will be distributed over the next 25 years.

Getting city council approval is a “critical first step” to getting the project off the ground, said Eric Danielson, NexPoint's managing director and head of real estate development. at a Future of DFW Life Sciences Summit held Aug. 27 in Plano. He noted that life sciences spaces are typically expensive and high-profile projects.

“That's why we needed the city to step in with us and that public-private partnership, so we're very, very happy that we made it to the finish line just to get us to the starting line,” Danielson said. .

He added that construction on the initial phase is likely to begin in late 2024 and will be ready for residents in early 2026.

of The city's planning and zoning commission unanimously approved the multi-use project in mid-July 2023. At the time, it was projected to create 30,000 full-time construction jobs. A tenant can employ anywhere from 200 to 1,000 people, depending on the manufacturing process, said Lucy Bannon, chief communications officer with NexPoint.

“The facility is also designed with the flexibility to accommodate a variety of life science productions in order to increase (job) variability,” Bannon said in an email.

She added that the first phase of the project is expected to bring a “significant number of high-paying advanced manufacturing jobs”. Many of these jobs do not require traditional college degrees.

With this biomedical research campus, the city hopes to attract public and private partnerships, improve educational opportunities and “foster long-term economic impact in the Plano community and surrounding area.” According to a study conducted by Waco-based economic consultant The Perryman Group, the project is expected to do generate nearly $2.9 billion in gross product and 30,124 job years in Plano.

TRQ, first announced by NexPoint in February 2023plans to include more than four million square feet of research and development space, laboratory space and manufacturing facilities. Additionally, the space is designed to accommodate “a wide range of life science companies.” Other mixed-use amenities are also planned for the site, including hotel and retail space.

NexPoint also hopes to attract life sciences companies from out of state, including Boston, San Francisco and North Carolina. TRQ aims to provide space to startups emerging from UT Southwestern and other research universities once they eventually outgrow their incubator offices at Pegasus Park. UT Southwestern Medical Center and Children's Health announced the plans earlier this year to build a $5 billion pediatric health campus.

Additionally, the center, at 5400 Legacy Dr., is located in Plano's Legacy business park and is within walking distance of The Shops at Legacy. Part of the newly created TIRZ includes parts of the Legacy neighborhood.

The redevelopment project comes as several North Texas cities have focused their efforts on becoming a life sciences and medical hotspot. Dallas County Health and Human Services also has plans to move to one new, three-story, $52 million lab by August 2025. Recently, a California life science company announced plans to relocate its headquarters to Dallas, signaling a shift in attitudes toward Dallas' potential to become a major medical and biotech center.

The city of Plano is also considered highly favorable to become such a hub because of its talented workforce, business-friendly environment and national and global connectivity, according to a city document.

“As the life sciences industry continues to expand in the region, we are confident that the Texas Research District will emerge as a major hub, further strengthening the metroplex's reputation as the 'Third Coast' for biotech research and manufacturing,” Doug McDonald, Plano's Director of Economic Development, said in a statement.