Title
Consider/Discuss/Act on Adoption of a Resolution Authorizing the City Manager to Accept the Agreed Final Judgment with the Texas Department of Transportation (TxDOT) for the Property Located on the South Side of Harry McKillop Boulevard East of State Highway 5 as Part of the Spur 399 Project
Summary
COUNCIL GOAL: Operational Excellence
(2B: Balance available resources to accommodate the growth and maintenance needs of the city)
MEETING DATE: October 20, 2026
DEPARTMENT: Development Services / Engineering
CONTACT: Gary Graham, PE, PTOE, Director of Engineering
Tracy Lund, PE, PH, Assistant Director of Engineering
RECOMMENDED CITY COUNCIL ACTION:
• Staff recommends that the City Council approve the proposed resolution.
ITEM SUMMARY:
• This Resolution provides authority to the City Manager to accept the Agreed Final Judgment in the amount of $750,000.00 with the Texas Department of Transportation (TxDOT) for TxDOT’s acquisition of City property rights through TxDOT’s use of Eminent Domain with respect to the Spur 399 Project.
BACKGROUND INFORMATION:
• Per the Spur 399 Project (Project), the Texas Department of Transportation (TxDOT) needed to acquire right-of-way from the City on its property located on the south side of Harry McKillop Boulevard east of State Highway 5, commonly known as the “landfill parcel”.
• On April 30, 2024, a Special Commissioners Hearing was held with respect to property acquisition Cause No. 002-00242-2024 (The State of Texas v. City of McKinney, et al.). An Award of Special Commissioners was subsequently filed.
• On May 9, 2024, the City, along with the North Texas Municipal Water District, filed their Objections to Award of Special Commissioners.
• On October 17, 2024, per an Order Granting Agreed Motion to Withdraw Funds, the Clerk of the Court was ordered to disburse $300,000.00 plus all accrued interest, less any fees, to the City. On October 22, 2024, check no. 11061 from the Collin County Clerk, County Court at Law No. 2, in the amount of $299,975.00 was remitted to the City.
• Mediation was held on March 12, 2026, at McKinney City Hall with representatives from the City, North Texas Municipal Water District, TxDOT, and the Mediator appointed by the Court. The City and TxDOT were unable to come to an agreement by the end of the mediation.
• A Settlement Agreement was reached between the City and TxDOT on September 18, 2026. Per the Settlement Agreement, the City will receive a total of $750,000.00 from TxDOT, less the amount of $299,975.00 previously remitted.
FINANCIAL SUMMARY:
• There are no expenditures connected to this Settlement. The City will receive funds in the amount of approximately $450,000.00 from TxDOT.
BOARD OR COMMISSION RECOMMENDATION:
• N/A