The City of Frisco is poised to provide the land for construction of a new corporate office building at the Dallas Cowboys' Star development that's expected to become the new home of Keurig Dr Pepper.
Frisco City Council plans to vote Tuesday to contribute the land overlooking the Cowboys' practice field for a 300,000-square-foot or larger building. The city's agenda doesn't publicly identify the beverage maker as the tenant. Show Full Story
The project comes up for consideration at a time when real estate brokers say Keurig Dr Pepper is planning to relocate its longtime offices from Plano's Legacy business park to The Star.
To entice the move, the city will sell the 2.49-acre site at a reduced cost, according to the council agenda.
The land, valued at $2.7 million, will be sold to Dallas Cowboys owner Jerry Jones' Blue Star Land for $597,912. The reduced price is described as a $2.1 million grant to assist the project's development.
"City council has investigated and determined that the company meets the criteria for providing the grant," according to the agenda. "The company shall be required to commence construction of the office building on the property on or before August 30, 2019, and complete construction ... within 24 months."
The construction must also include additional parking for The Star.
Keurig Dr Pepper representatives would not comment Monday when contacted by The Dallas Morning News.
Ron Patterson, president of the Frisco Economic Development Corp., confirmed the agenda item but would not provide details about the company involved.
"Yes, there is an item on the city council agenda related to the development of a new office building by Blue Star Land within The Star," Patterson said in an email. "Blue Star is currently in lease negotiations for this new property."
Dr Pepper moved its headquarters from Dallas to Plano's Legacy business park in 1998. It was the 19th largest public company in Dallas-Fort Worth, based on 2017 revenue of $6.7 billion.
Keurig Dr Pepper's Plano office building is on Legacy Drive, just east of Dallas North Tollway. The almost 300,000-square-foot building and adjoining parking garage were constructed in 1997.
Real estate brokers say Dr Pepper scouted potential locations in Frisco and other nearby cities before deciding on The Star, which is at the Dallas North Tollway and Warren Parkway.
Frisco has been aggressively luring business from Plano and other northern suburbs with economic development incentives.
And The Star, anchored by the Cowboys' headquarters and practice facilities, already has attracted major tenants, including FM Global, Bank of America, PlainsCapital Bank and RBC Wealth Management.
Since last summer, Dr Pepper -- Texas' homegrown soft drink company -- has been owned by Massachusetts-based Keurig Green Mountain Inc. Keurig paid more than $21 billion to merge with Plano's Dr Pepper Snapple Group, forming the seventh-largest U.S. food and beverage company.
The combined company headquarters are at a recently expanded campus in Burlington, Mass.
Dr Pepper already has close ties to Frisco's sports and entertainment venue on Gaylord Parkway near Stonebriar Centre Mall. The city's minor league baseball stadium is known as Dr Pepper Ballpark. And until earlier this year, the company also held naming rights to the nearby hockey and ice skating arena. The arena is now Comerica Center.