Title
Conduct a Public Hearing to Consider/Discuss/Act on a Strategic Partnership Agreement Between the City of McKinney and McKinney Municipal Utility District Number 1 of Collin County
Summary
MEETING DATE: January 7, 2014
DEPARTMENT: Development Services
CONTACT: Barry Shelton, Executive Director of Development Services
Mark Houser, City Attorney
RECOMMENDED CITY COUNCIL ACTION:
· Conduct the second of two public hearings and approve the strategic partnership agreement.
ITEM SUMMARY:
· The Strategic Partnership Agreement contains terms which allow the City to receive sales and use taxes from the sale of goods within the district, even though the sales occur outside of the city limits.
· The primary terms of these agreements are unchanged from its initial adoption in 2006, wherein the City and the district split the City's ($0.01) sales taxes on a 75%/25% basis. The district's share of the sales taxes must be used on repayment of developer expenses for primary infrastructure and district bonds. The City may use its share for any municipal purpose.
· The terms of the agreement will also allow the City to receive sales and use taxes from the sale of goods within the district authorized for Type A and Type B economic development corporations. No portion of these Type A and Type B sales taxes shall be paid to the district.
· The Strategic Partnership Agreement was approved in form as an attachment (Exhibit J) to the development agreement.
BACKGROUND INFORMATION:
· On December 5, 2006 the City of McKinney approved a Consent Ordinance and interrelated agreements with Marlin Atlantis, the former developer of the approximately 1,700 acre property within McKinney's ETJ known as Trinity Falls, allowing the creation of two Municipal Utility Districts (MUDs).
· The original Trinity Falls development agreement sets out the governing regulations for land development, infrastructure construction, public safety, parks and schools. Since the property is not subject to city zoning ordinances, the Development Agreement acts as a binding land use agreement for all subsequent owners.
· On December 4, 2012, the City of McKinney approved renegotiated agreements that continued to provide the governing regulations for land development, infrastructure construction, public safety, parks and schools, but allow for an alternate development pattern and flexibility to respond to market forces over the life of the project.
FINANCIAL SUMMARY:
· Included in Item Summary
BOARD OR COMMISSION RECOMMENDATION:
N/A