The Plano City Council has approved a development agreement to support the Texas Research Quarter (TRQ) – a sprawling, life sciences-focused innovation district being planned by NexPoint, a Dallas-based alternative investment platform. for Plano’s legacy development.

In February 2023, Dallas Innovates first released renderings of the TRQ – initially called the TxS District, short for “Technology x Science.” At the time, Frank Zaccanelli, president of NexPoint Development Co., the development arm of NexPoint’s real estate platform, said NexPoint hoped to “work with the city to transform these properties into a thriving life sciences district and bring good-paying jobs to the Plano area.”

The project was renamed the Texas Research Quarter in May 2023 “to better reflect the commitment to innovation and collaboration among companies and organizations across the life sciences sector,” NexPoint said at the time.

Zaccanelli told the Dallas Morning News in early 2023 that his company was prepared to invest more than $3.6 billion in the project – with the help of the city of Plano’s economic development programs.

The first piece of the puzzle of this incentive plan has now fallen into place.

Representation of the Texas Research Quarter: West entrance of the lobby. (Image: NexPoint)

Building on DFW’s reputation as a “third coast” for biotechnology

The newly announced agreement supports the redevelopment project and facilitates catalytic investments in Plano and North Texas, NexPoint said.

“The City of Plano is proud to partner with NexPoint to transform this iconic site into the next major life sciences hub in North Texas,” said Doug McDonald, economic development director for the City of Plano, in a statement. “As life sciences continue to expand in the region, we are confident that the Texas Research Quarter will evolve into a central hub and further cement the Metroplex’s reputation as the ‘Third Coast’ for biotechnology research and manufacturing.”

“This development agreement demonstrates Plano’s commitment and willingness to use the economic development tools already in place to attract global pharmaceutical companies to Plano and ensure the success of this project,” added McDonald.

The research quarter – rendering: East entrance hall. (Image: NexPoint)

Part of a broader public-private partnership

The city’s approval is an important step in a broader public-private partnership that aims to make Plano a major life sciences hub and bring together numerous stakeholders from the public and private sectors to drive innovation, improve educational opportunities, build a skilled workforce for the future and create long-term economic impact for the Plano community and the surrounding region, NexPoint said.

“The City Council’s approval is just the first step in a comprehensive plan to develop the Texas Research Quarter into a world-class life sciences hub,” Eric Danielson, managing director and head of real estate development at NexPoint, said in a statement. “We are committed to working with the community to build a dynamic ecosystem that drives innovation, attracts and develops top talent, supports groundbreaking research, and accelerates the production and delivery of critical treatments to patients in Texas and beyond.”

Representation of the Texas Research Quarter: laboratory and office. (Image: NexPoint)

More than 3 million square feet for life sciences

The agreement provides for reimbursement to encourage investment and development within a newly created Tax Increment Reinvestment Zone (TIRZ), which includes the Texas Research Quarter properties and other parts of the Legacy District.

The agreement targets the first phase of a multi-phase project and supports the redevelopment and new construction of the former Electronic Data Systems headquarters, a 91-acre site that serves as the main campus of the Texas Research Quarter. Future phases include further redevelopment efforts across the main campus as well as the creation of an integrated, multi-site district through the development of adjacent and nearby properties, NexPoint said.

According to NexPoint, the project is designed to provide more than 3 million square feet of life sciences facilities on the main campus, including research and development facilities and cGMP manufacturing facilities designed to be flexible enough to accommodate a wide range of life sciences companies.

Vacant land off-site will be used to accommodate additional life sciences facilities, either integrated into the master plan in subsequent phases or developed as bespoke projects to meet individual tenant requirements or site selection outside of the main campus facilities.

NexPoint has worked with the City of Plano to establish a Tax Increment Financing (TIF) program to support the redevelopment. The first step was the Tax Increment Reinvestment Zone (TIRZ) established by the City in January. The TRQ is seeking a broader public-private partnership involving two additional taxing authorities. While this is an important milestone, NexPoint aims to finalize the relevant agreements soon.

Location advantages and next steps

The Legacy neighborhood grew around the original EDS campus and has become a global location for corporate and regional headquarters of companies across a range of industries. TRQ’s main campus is within walking distance of the Shops at Legacy, a mixed-use complex offering a wide range of amenities including retail, dining, hospitality and entertainment. Plans for TRQ’s main campus also include acres of publicly accessible green space, further integrating the property into its surroundings.

Plano’s location, modern infrastructure, business-friendly climate, high-quality education system and strong community support make it an ideal site for this type of development, NexPoint said. Taking advantage of these advantages, the Texas Research Quarter aims to create a dynamic environment for companies and institutions involved in the entire life sciences industry, from early-stage research to commercial production, along with academic partnerships and workforce development and training.

NexPoint is seeking similar agreements with other local taxing authorities and seeks to build a public-private partnership that reflects the unified support of multiple public sector stakeholders. The expanded public-private partnership is designed to unlock the full potential of TIRZ and provide the funding needed to create world-class life sciences facilities and attract major companies to Plano, providing major job opportunities and investment to the community to drive long-term economic growth.

With the involvement of other tax authorities, the broader public-private partnership could be completed in the fourth quarter, NexPoint said, with the first phase of construction to begin after completion.

David Seeley contributed to this report.

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