The Dallas Wings will invest approximately $27 million in private capital to close the funding gap on their new practice facility after the City of Dallas formally approved a developer agreement transferring construction responsibility of the secondary facility to the franchise.
City documents show the total Estimated Project Budget for the facility is approximately $81 million. With the City of Dallas capped at a $54 million contribution, the remaining balance — roughly $27 million — will be funded by the Wings as part of what the agreement defines as the “Wings Contribution.” That figure represents roughly one-third of the total projected cost.
The City’s participation is structured as an economic development grant under Chapter 380 of the Texas Local Government Code. Funding will be drawn from the Convention Center Construction Fund and the Convention Center Revenue Bonds Series 2023 Fund.
The resolution authorizes the City Manager to execute an economic development grant agreement with Dallas Wings Development LLC, establishing the financial framework for the City’s capped contribution toward the practice facility project.
It also approves Supplemental Agreement No. 3 to the Dallas Memorial Auditorium Resident Use and Incentive Agreement (Resolution No. 24-0616). That supplemental agreement modifies completion dates, adjusts revenue-sharing terms and formally transfers construction obligations for the secondary facility from the City to the Wings.
In addition, the resolution provides for a reduction in scope to the City’s existing project management contract with McKissack and McKissack, reflecting the removal of the practice facility from the City-led construction portfolio.
Dallas Wings to Serve as Developer and Assume Construction Risk
Under the approved framework, Dallas Wings Development LLC, a subsidiary of the franchise, will serve as developer and assume responsibility for designing, partially funding and constructing the secondary facility at 1200 North Cockrell Hill Road on City-owned park property.
The development agreement structure permits the City to execute a deductive change order removing the practice facility from the scope previously assigned to the City’s owner’s representative. As a result, the McKissack and McKissack contract will be reduced by $1,847,485, lowering the total contract value from $13,945,684 to $12,098,199.
The transfer shifts construction control, cost overrun exposure and delivery risk from the City to the Wings. The Developer is responsible for all Project costs in excess of the City Contribution.
City of Dallas Financial Commitments and Installment Structure
The City’s financial participation includes up to $54,000,000 in project costs, defined as the City Contribution. In addition, the City will fund a developer fee not to exceed $3,240,000 — equal to 4% of actual project costs and subject to a hard cap — as well as a delay reimbursement payment not to exceed $653,000.
City disbursements will be structured around verified construction milestones. An initial installment of $10,000,000 will be paid upon execution of the development agreement, a portion of which may reimburse project expenses incurred by the developer prior to formal approval.
A second installment of $15,000,000 will be released upon commencement of foundation construction. Once the foundation and early structural framing are completed, an additional $25,000,000 will be disbursed.
The remaining balance, approximately $4,000,000, will be paid upon completion of the shell building and roof, including electrical and plumbing systems, as verified by the City.
The developer fee will be paid upon Substantial Completion of the Project.
All payments are subject to Director verification and submission of customary documentation of actual project costs incurred by the Developer. If actual costs are lower than the $54 million City Contribution cap, the City’s obligation will be reduced accordingly. If costs exceed $54 million, the Wings remain responsible for the excess.
The parties also agreed to work in good faith to preserve any potential tax exemptions available to the Project.
Required Project Components and Facility Specifications
The facility must include defined “Required Project Components,” including:
- Approximately 70,000 square feet, or lesser square footage if operational standards are satisfied
- A minimum of two basketball courts
- Locker rooms
- Weight room
- Kitchen facilities
- Restrooms
- Office and training space
- Approximately 3,400 square feet of designated community benefit space
The Wings are required to complete design, partially fund and construct all Required Project Components and related public infrastructure improvements on and adjacent to the property.
The franchise will retain ownership of all team-owned furniture, fixtures and equipment (FF&E), which are excluded from City Contribution calculations.
Community Integration and Adjacent Development
As part of the agreement, the Wings must collaborate with the City as Dallas develops four soccer fields and connecting trails adjacent to the secondary facility to ensure cohesive design and aesthetics.
The City of Dallas will be solely responsible for all costs associated with the soccer fields and trail construction. Those expenditures are excluded from the Project Budget.
Timeline, Permitting and Oversight Requirements
The Developer must submit an initial permit package no later than Aug. 15, 2026, contingent upon timely delivery of geotechnical studies by the City and absent findings requiring foundation redesign.
The Developer is required to use commercially reasonable efforts to achieve Substantial Completion by April 1, 2027. Substantial Completion will be evidenced by certificates of occupancy, letters of acceptance, certificates of completion or similar documentation issued by the City.
The City Manager may administratively authorize deadline extensions of up to twelve months for just cause without requiring additional City Council approval.
Payment and performance bonds must be provided by the Developer’s general contractor prior to beginning construction.
Quarterly reporting is mandatory, with status reports due within 30 calendar days following each calendar quarter until completion. City staff will meet with the Developer on a pre-established cadence to ensure alignment.
Delay Reimbursement and Legal Provisions
The City will provide a lump-sum delay reimbursement of $653,000 in compromise and settlement of alleged damages arising from delays in delivery of the secondary facility.
As an express condition of receiving the Grant and Delay Reimbursement, Dallas Wings Development LLC must release and forever discharge the City and its officials, employees and agents from claims related to prior delays and covenant not to sue the City regarding those matters. The release does not apply to obligations expressly created under the new development agreement.
The agreement includes customary default and remedy provisions. Neither party shall be liable for consequential, punitive or special damages. The agreement is not assignable.
If the executed agreement does not contain the required release and covenant not to sue, the portion of the resolution authorizing the Grant becomes null and void.
Transitional Impact on 2027 Season and Financial Structure
Due to prior delivery delays, the Arena and secondary facility timeline now extends into the 2027 WNBA season. As a result, the Wings will remain in their current practice facility and compete in an alternate arenaduring the 2027 season while construction is completed.
The total Estimated Project Budget is approximately $81 million. The City’s contribution is capped at $54 million. Based on current projections, the Wings’ anticipated contribution is approximately $27 million, representing roughly one-third of total project cost.
Any cost overruns beyond the City Contribution remain the responsibility of the Wings. Any cost savings that reduce the Project Budget below $54 million will reduce the City’s obligation accordingly.
The resolution takes effect immediately upon passage.
With the developer agreement now approved, the City of Dallas has capped its exposure at $54 million while transferring construction control and cost risk to the Dallas Wings, who are committing approximately $27 million in private capital to deliver a purpose-built WNBA practice facility targeted for April 2027 completion.
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