The Promised Land (Part 2)

by friscowhistleblower | Mar 14, 2023 | Blue Star Land, Current City Council, Dallas Cowboys, Developements, Developers, Jerry Jones, Politics, Taxpayer Dollars

There are two things that interest me: the relation of people to each other, and the relation of people to land. – Aldo Leopold

Remember that the land value of a piece of property includes both the value of the land itself as well as any improvements that have been made to it or around it, one could assume land around The Star would dramatically increase in value as the development came together and was completed.  Ready for the kicker, would it surprise you that the city sold the piece of land in question which is estimated to be worth $2.7 million to Blue Star Land Phase III for the sale price of $597,912.00 plus the city’s carrying cost of interest over the years?  At the time of the sale in 2019 it was all over the news, but did Frisco residents really pay attention?  Probably not and truthfully I had no clue until my curious nature got the best of me and I started looking into things last year.  Reading this, do you think it sounds like a win?  In theory yes, Frisco sold the land which will yield a substantial potential tax revenue.   

Stop the time clock, it is time for a replay so you can understand why Frisco residents should care.  First, if the city decided to sell that land no matter who bought it and developed it into an office building the city would be taking an asset generating no revenue and turning it into a cash-generating tax site.  We would not have lost an opportunity for the potential $190,000,000 in tax revenue.

Second, the city purchased all this land along the tollway years ago with taxpayer money as a future investment.  Selling it for the price we paid plus carrying costs seems to dilute the point of the purchase.  The Dallas Morning News reported the market value was an estimated $2.7 million and we sold it for $600,000 which means we gave away $2.1 million dollars of taxpayer money.  Anyone looking at this with basic common sense would see the land sale plus the potential tax revenue as a blockbuster achievement.   Sherlock Holmes might say, “Elementary, my dear Watson that is a win-win for the city and residents.” 

On the flip side, if you’re a DFW local then you know Jerry Jones, and his reputation for being a little pompous, arrogant, vain, egocentric, and self-centered.  He is not afraid to say what he thinks, show off or even be offensive at times.  It is “Jerry’s World”, and we are lucky to be in it and it has been that way for years.  He has worked hard, built an empire, and achieved the American Dream and he has every right to act or celebrate that the way he wants.  Keeping in mind Jones’s famous ego if the city did a public sale of the 2.4933 acres of land with direct views of Jerry’s empire including the player’s practice fields, do you think Jones would ever let anyone else buy it or develop it?  He would do whatever he had to do to protect his STAR!  That makes those 2.4933 acres a rare invaluable treasure that is irreplaceable to Jones.   Other developers would also see the value of that land and they would come out of the woodwork, and it could potentially create a bidding war for the holy grail tract of land.  Can you imagine what it potentially could have sold for?

We are left with so many questions, the first being who the real winner in this deal was.  Clearly, it is Blue Star Land.  The city is going to say the potential tax revenue outweighs the loss of profit on the land sale but as a taxpayer, I disagree.  I see the Superbowl moment for Frisco residents being the profit of the land sale and still achieving the potential tax revenue. 

Mayor Jeff Cheney has said multiple times over the years that the Dallas Cowboys moving to Frisco would create a “halo effect” for our local economy.  That means it would form a positive cognitive bias that would increase the city’s presence, brand, and attributes making it attractive to other developers and Fortune 500 businesses, so they would want to be and call Frisco home. That leads to my next question, which is logically thinking if we had to recruit businesses by offering oversized incentives before, then what does the “halo effect” do for us now?  Does it mean we will not have to dole out large incentives or deals as we had in the past?

Then I thought of marketing, the Dallas Cowboys logo, and the brand is one of the most famous in the world, and companies pay big bucks to do partnership deals with America’s Team.  In 1995 Jones had deals with Nike, Pepsi, American Express, and AT&T that were worth more than $60 million.  In 2013, AT&T bought the naming rights to the Cowboys Stadium for up to $20 million a year.  In 2022, it was reported that the Cowboys grossed $220 million in stadium ads and sponsorship revenue.  They also have million-dollar deals with WinStar World Casino, Lincoln Motor Company, Ford, Omni Hotels and Resorts and we could go on and on.  So surely in all these deals or incentive packages the city worked out something where we could put the Cowboy’s famous Blue Star on The City of Frisco webpage with a tagline “Home To The Dallas Cowboys World Headquarters” or when you open the Frisco EDC webpage to show off and increase the so-called “halo effect” to future companies looking to relocate to our great city.  A quick surf of our sites there are pictures of The Star but none of the famous and iconic Cowboys branding.  Nope, nothing, zilch!

What I did find interesting is a 2021 Dallas Morning News article talking about Monument Realty and how they were named the Official Real Estate Company of the Texas Rangers and you guessed it, the Dallas Cowboys.  Dak Prescott is listed as its “chief quarterback officer” and The Cheney Group hangs its hat there.  We are awe-struck really because we know that had to cost them a pretty penny to obtain those deals.  I mean one would assume that based on the millions of dollars other companies have to pay for partnership deals with these sports teams.