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

In February 2023, Dallas Innovates first published 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 partner with the city to transform these properties into a thriving life science district and bring high-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 science sector,” NexPoint said at the time.

Zaccanelli told the Dallas Morning News in early 2023 that his company was ready to invest over $3.6 billion into the project—with help from the city of Plano’s economic development incentive programs.

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

Texas Research Quarter rendering: lobby west entry. [Image: NexPoint]

Building on DFW’s reputation as the ‘Third Coast’ for biotech

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

“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,” Doug McDonald, director economic development with the city of Plano, said in a statement. “As the life sciences industry continues to expand in the region, we’re 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,” McDonald added.

The Research Quarter Rendering: lobby east entry. [Image: NexPoint]

Part of a broader public-private partnership

The city’s approval is a key step in a broader public-private partnership that would establish Plano as a major hub for life science and bring together multiple public and private sector stakeholders to advance innovation, improve educational opportunities, develop a skilled future workforce, and drive long-term economic impact in the Plano community and surrounding area, NexPoint said.

“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,” Eric Danielson, managing director and head of real estate development at NexPoint, said in a statement. “We’re 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.”

Texas Research Quarter rendering: lab & office. [Image: NexPoint]

3 million+ SF for life science

The agreement provides reimbursement to incentivize investment and development within a newly created tax increment reinvestment zone (TIRZ), which contains the Texas Research Quarter properties and other parts of the Legacy neighborhood.

By targeting the first phase of a multiphase project, the agreement supports redevelopment and new construction at the former Electronic Data Systems headquarters, a 91-acre site that serves as the Texas Research Quarter main campus. Future phases include additional redevelopment activity across the main campus, as well as the creation of an integrated multisite district through development at adjacent and nearby properties, NexPoint said.

According to NexPoint, the project is aimed at delivering more than 3 million square feet of life science facilities on the main campus, including research and development facilities and cGMP manufacturing facilities designed with flexibility to accommodate a broad range of life science companies.

Undeveloped offsite parcels are expected to house additional life science facilities that will either be incorporated into the master plan in subsequent phases or be developed as build-to-suit projects to meet tenant customization or site selection requirements outside of the main campus facilities.

NexPoint has been working 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) formed by the city in January. The TRQ is pursuing a broader public-private partnership that includes participation from two other taxing entities, so while this is a major milestone, NexPoint said it’s looking to get those corresponding agreements completed soon.

Site advantages and next steps

The Legacy neighborhood grew around the original EDS campus and has become a global destination for corporate and regional headquarters for companies across a range of industries. TRQ’s main campus is within walking distance of the Shops at Legacy, a mixed-use development that provides a wide range of amenities including retail, dining, hospitality, and entertainment. TRQ’s main campus plans also include several acres of green space open to the public that will further integrate the property into the surrounding area.

Plano’s location, advanced infrastructure, business friendly climate, high-quality education system, and strong community support make it an ideal location for this type of development, NexPoint said. Leveraging these assets, the Texas Research Quarter aims to create a dynamic environment for companies and institutions operating across the life science industry, from early-stage research to commercial manufacturing, along with academic partnerships and workforce development and training.

NexPoint is pursuing related agreements with other local taxing entities, seeking to establish a public-private partnership that reflects unified support from multiple public sector stakeholders. The expanded public-private partnership would aim to unlock the full potential of the TIRZ and provide the funding needed to deliver world-class life science facilities and recruit major companies to Plano, bringing major employment opportunities and investment to the community to drive long-term economic growth.

With participation from other taxing entities, the broader public-private partnership could be completed in the fourth quarter, NexPoint said. The first phase of construction is expected to begin upon its completion.

David Seeley contributed to this report.

Get on the list.
Dallas Innovates, every day.

Sign up to keep your eye on what’s new and next in Dallas-Fort Worth, every day.