Title
Conduct a Public Hearing to Consider/Discuss/Act on a Resolution of the City Council of the City of McKinney, Texas, Regarding the Application of the “McKinney Flats” to the Texas Department of Housing and Community Affairs (TDHCA), for 4% Tax Credits for the Construction of Multi-Family Units Within the Development
Summary
COUNCIL GOAL: Enhance the Quality of Life McKinney
(5F: Maximize partnerships between the City of McKinney and private industry)
MEETING DATE: December 17, 2019
DEPARTMENT: Housing & Community Development Department
CONTACT: Janay Tieken, Housing and Community Development
Cristel Todd, Affordable Housing Administrator
RECOMMENDED CITY COUNCIL ACTION:
• Approve one of the Resolutions
ITEM SUMMARY:
• McKinney Flats Ltd is applying to TDHCA for 4% tax credits for the construction of McKinney Flats.
• McKinney Flats Ltd is requesting a Resolution of No Objection from the City Council.
BACKGROUND INFORMATION:
• NRP is a national multifamily developer, general contractor and property manager founded in 1995. The have developed over 28,000 units in 15 states, and manage over 20,000 residential units.
• More than 300 years of collective executive team experience, and over 700+ employees nationwide.
• Annual building revenue of over $300 Million. Closed over $5 Billion in Real Estate, $3 Billion since 2009.
• The proposed affordable development consists of 206 units.
• Development site is located at Collin McKinney Pkwy and Test Dr., McKinney, TX.
• December 3, 2019, City Council approved the zoning for the project.
• November 18, 2019, HUD publishes map of 2020 DDAs/QCTs.
• October 31, 2019, 2020 Bond Lottery results released.
• October 22, 2019, Planning & Zoning unanimously approved the zoning for the project.
• October 16, 2019, application to the Texas Bond Review Board submitted for the 2020 Bond lottery.
• October 7, 2019, Plan revisions submitted.
• September 25, 2019, HUD publishes list of zip codes/census tracts for 2020 DDAs/QCTs in the Federal Register.
• September 3, 2019, Letter of intent for rezoning submitted.
• August 8, 2019, Inducement Resolution for private activity bonds passed by McKinney Housing Finance Corporation.
• August 1, 2019, Due Diligence kicked off: engineers engaged to deliver environmental, engineering feasibility, market, geo-technical, architectural, and additional report’s/studies.
• July 17, 2019, site location of Collin McKinney Parkway under contract.
• June 27, 2019, McKinney Housing Finance Corporation approved MOU with NRP.
• May 7, 2019, City Council updated on the DDA and two possible locations.
• January 15, 2019, City Council updated on the selection of NRP Group.
• January 11, 2019, NRP selected as partner.
• November 1, 2018, RFQ deadline.
• October 14, 2018, RFQ was released.
FINANCIAL SUMMARY:
• The estimated total cost of the project is approximately $42.3 million. Tax credits make up approximately $12.8 million, tax exempt bonds make up approximately $24.6, with private equity and deferred developer fee providing the remaining $5 million.
• The developer is not asking for any additional contribution or fee waivers from the City at this time.
BOARD OR COMMISSION RECOMMENDATION: N/A