Title
Consider/Discuss/Act on a Resolution Amending the Project Plan for Tax Increment Reinvestment Zone Number One
Summary
COUNCIL GOAL: Enhance the Quality of Life in McKinney
(5C: Promote the reinvestment activities and ordinance changes in McKinney’s historic downtown that balance preservation of historic character and current market needs)
MEETING DATE: June 2, 2026
DEPARTMENT: Development Services - Planning Department
CONTACT: Cassie Bumgarner - Planning Manager
Lucas Raley - Director of Planning
RECOMMENDED BOARD ACTION:
• Staff recommends approval of the proposed resolution.
ITEM SUMMARY:
• This item is to consider amendments to the Project Plan for Tax Increment Reinvestment Zone No. 1.
• The proposed amendments are intended to clarify eligible projects and elaborate on administration and implementation costs. In summary, the proposed changes cover:
o Administrative cleanup of typos, consistency of capitalization
o Clarity for Vacant/Underutilized Project type
§ Elimination of the language “relatively smaller” and “under $5.0 million” as those are not project defining
o Clarity for Land Acquisition eligible expenditure category
§ Addition of “not limited to” in the examples of potential land acquisitions
o Clarity of Administrative and Implementation Costs
§ Aligning language between these and non-project costs
§ Additional example of administrative costs
• Redlines are attached to this staff report. If approved, City Council will consider an ordinance adopting these same amendments.
BACKGROUND INFORMATION:
• The Project Plan of the TIRZ focuses on support for catalytic projects for the continued revitalization of the Town Center; key regional transportation infrastructure for effect access and linkages throughout the Town Center including connections between the Historic Square to the west of Highway 5 and the future Transit-Oriented Development (TOD) to the east of Highway 5, as well as safe auto, pedestrian and bicycle movements along Highway 5 and within the supporting street network of the Town Center infrastructure and development of the TOD; and for other potential locations and projects that provide opportunity for redevelopment.
• The TIRZ was created with the primary intention of collection and retaining revenues (in the TIRZ) for aggregation to facilitate long-term financing for critical transportation infrastructure and other substantial catalyst projects to support and encourage sustained revitalization of the Town Center.
• The authority of the Board of Directors is established by City Ordinance No. 2010-09-034 creating the TIRZ, Board authority includes the making of recommendations to the City Council concerning the administration of the TIRZ; and adopting (and amending as needed in the future) a project plan and financing plan consistent with the preliminary project plan and finance plan subject to final approval by City Council.
• The TIRZ has the authority under Chapter 311 of the State Tax Code and Chapter 380 of the Texas Local Government Code to make loans or grants of TIRZ funds for the purposes of promoting local economic development and stimulating businesses and commercial activity within the TIRZ.