The Dallas Stars are one step closer to moving homes.On Monday, the city council of Plano, Texas, approved the non-binding letter of intent the team initially submitted, allowing the city to consider developing a sports and entertainment district headlined by a new NHL arena. It is a starting point in a much longer relocation process for the Stars, who finished the 2025-26 regular season as the Western Conference’s second-best team before falling in the first round of the playoffs, but a significant one nonetheless.“I’d like to thank (Plano Mayor John B.) Muns and the entire Plano City Council for their support, and their approval of our letter of intent and several other items connected to the redevelopment of The Shops at Willow Bend,” Stars chairman Tom Gagliardi said in a statement, referring to the area of Plano also known as Willow Bend Mall that serves as the site of the proposed arena district.“We look forward to taking the next steps in the journey toward making Plano our new home in 2031.”Last week, the Stars announced their intention to move to Plano, nearly 30 minutes north of their current home at American Airlines Center. The Stars’ current lease at AAC expires in 2031. That followed news of the AAC’s other tenant, the NBA’s Dallas Mavericks, unveiling new arena plans of their own in North Dallas, at the site of the area’s former Valley View Mall. The Mavericks also have a lease at the AAC that runs until 2031.“Plano has built a reputation as a city that welcomes world-class partners and community-focused investment,” Muns said in a statement. “These actions are a significant first step as we evaluate the potential for a thoughtfully designed sports and entertainment district that reflects the priorities and values of our community.”What does the Stars’ letter of intent really mean?The letter indicates that the City of Plano and the Dallas Stars can negotiate an agreement to work together in the designing, building, operating and overall financing of a new Stars arena and its surrounding entertainment district.According to the letter of intent, the city will commit up to $700 million in public funds toward the $1 billion arena, through bonds and revenue gained from a 30-year “tax incremental reinvestment zone” that will encompass the arena, the district site and non-residential buildings in the surrounding area. Reports have pegged the cost of the entire district project, arena included, at close to $3 billion.While the city will technically own the arena and surrounding site, the Stars plan to sign a 30-year lease agreement for both that ensures they will retain all revenue earned from the arena’s operation, including through sponsorship and naming rights.