The Plano City Council recently approved a development agreement to support the Texas Research Quarter (TRQ) project — a new life sciences and medical center that will occupy the former H. Ross Perot Sr.’s Electronic Data Systems (EDS) campus.
Dallas-based real estate investment trust NexPoint purchased the property in 2018 and will now benefit from a newly created tax increment reinvestment zone, which includes several parts of the Legacy neighborhood, in addition to the EDS campus. Incentives for the $1 billion redevelopment include up to $15 million in reimbursement with payments to be made throughout 25 years. NexPoint is reportedly pursuing related agreements with other local taxing entities in hopes of completing a broader public-private partnership in the fourth quarter and subsequently starting construction.
According to statements recently released by TRQ, the public-private agreement obtained thus far supports the first of multiple phases of the project — namely, the redevelopment and new construction at the former EDS headquarters, which serves as the TRQ main campus.
Plans for subsequent phases include additional redevelopment on the main campus, as well as the creation of an integrated, multi-site district by developing adjacent and nearby properties. Upon completion, the main campus will incorporate more than 3 million square feet of life sciences space, including research and development facilities and flexibly designed cGMP manufacturing space that could accommodate a wide range of life sciences companies.
What’s more, off-site parcels that are not yet developed will also become life sciences facilities that will either be incorporated into the master-planned first phase or be developed as build-to-suit projects to meet tenant customization or site selection requirements separate from the TRQ campus.
In addition to Plano office space dedicated to life sciences research, the massive site is also designed to include several acres of publicly accessible green space that connects the property with the surrounding area. Located within walking distance of The Shops at Legacy, the project offers tenants a wealth of amenities, including retail, dining, hospitality, and entertainment.
“The City Council approval is just the first step in a comprehensive plan to develop the Texas Research Quarter into a world-class hub for life science,” said 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.”
“The City of Plano is proud to collaborate with NexPoint in transforming this iconic site into the next major life sciences hub in North Texas,” said Doug McDonald, director of economic development with the City of Plano. “As the life sciences industry continues to expand in the region, we are confident that the Texas Research Quarter will emerge as a pivotal center, further solidifying the metroplex’s reputation as the ‘Third Coast’ for biotechnology research and manufacturing. This development agreement demonstrates Plano’s commitment and readiness with the economic development tools already in place to help recruit global pharmaceutical companies to Plano and ensure the success of this project.”
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