VENU’s 20,000-seat Sunset Amphitheater project in McKinney, financing challenges as construction nears completion, is seeking another $60 million in private funding to finish the $330 million music venue.

McKinney City Council voted Monday to allow the company to move forward with a sale-leaseback deal. City officials said the project’s scope has expanded since first announced, and a company executive said a key funding piece fell through.

“Originally it was about a $220 million project. Now we’re at about $330 million,” said City Manager Paul Grimes. “We think it’s going to be an even better project for the community. They do have some financing challenges.”

The public-private project, which VENU officials said is about 70% complete, is slated to open in the first quarter of 2027 near U.S. Highway 75 and State Highway 121. In a multifaceted deal approved in 2024, the city agreed to give VENU some incentives to build the amphitheater, including sales and property tax reimbursements, $26 million in grants and 46 acres of land.

Robert Mudd, a senior vice president at Venu Holding Corporation, told the council Monday that a statutory trust related to the project’s land did not manifest as the company anticipated. This kind of trust is a legal entity that holds property on behalf of investors.

A VENU spokesperson declined to comment more on the trust Tuesday afternoon.

In looking for alternatives, the company turned to STORE Capital, an Arizona-based real estate investment trust that offered a deal to allow VENU to sell the land, use the funds to complete construction, then buy it back after the venue opens.

In a statement, McKinney spokesperson Aschelle Morgan said VENU remains responsible for completing and operating the venue.

“The $60 million from STORE Capital’s purchase is private capital and does not represent any new public investment,” Morgan said in a statement.

As part of the agreement, the city secured certain protections, such as reductions or caps in parts of VENU’s incentives, more rights to intervene and a construction escrow managed by the city.

Because the city’s existing agreement with VENU includes restrictions and requirements related to transfers of the property and project interests, VENU needed approval from the city and its corporations to move forward, according to the city.

Mudd said the plans for the venue have expanded. The broader scope includes climate control features for summer and winter performances and the ability to host smaller productions of up to 5,000 seats and larger shows up to 20,000 attendees.

The venue is also planning to host immersive shows through sound and lighting features, similar to the Sphere in Las Vegas, he said.

Mudd said the added features mean the space could host 100 shows a year, up from 60 originally planned, and bring the projected revenue from $98 million to $164 million. He said over 90% of the venue’s suites, which cost between $480,000 and $1.2 million, are sold.