Title
Consider/Discuss/Act on a Resolution Approving a Chapter 380 Economic Development Agreement and Project Plan Implementation Agreement with Saint James Church CME for an Asbestos Abatement/Demolition Project (Environmental Remediation Project) Located at 500 North McDonald Street
Summary
COUNCIL GOAL: Enhance the Quality of Life in McKinney
(5C: Promote reinvestment activities and ordinance changes in McKinney’s historic downtown that balance preservation of historic character and current market needs)
MEETING DATE: September 30, 2024
DEPARTMENT: Development Services - Planning Department
CONTACT: Jennifer Arnold, AICP, Director of Planning
Cameron Christie, Planner I
RECOMMENDED BOARD ACTION:
• Staff recommends denial of the Chapter 380 Economic Development Agreement and Project Plan Implementation Agreement due to concerns with the lack of assured redevelopment on the site.
ITEM SUMMARY:
• The applicant requests an economic development grant from Reinvestment Zone Number One in support of an asbestos abatement/demolition project at 500 North McDonald Street (Saint James Church). The request is to assist specifically with the following TIRZ 1 eligible expenses under the Vacant/Underutilized Sites/Buildings project category of the Project Plan:
• Environmental Remediation, Interior/Exterior Demolition
o Asbestos Abatement
• In Staff’s review of the request, we note that the proposed project is for asbestos abatement associated with the intended demolition of the building. However, there are no firm plans for the redevelopment of the site.
• Given that a stated goal of the TIRZ No. 1 Project Plan is to support redevelopment activities that advance the vision established in the Town Center Study Master Plan, Staff has concerns that the proposed project does not inherently advance the goals of the project plan, since there are no redevelopment plans tied to the request.
• As proposed, the applicant is also requesting $39,500 in TIRZ funding to offset the full cost of project.
• The existing TIRZ Administration Policy and Guidelines limits the allocation and/or awarding of TIRZ No. 1 funds for environmental remediation expenses to the lesser of the grant/reimbursement or $25,000 per qualifying project.
• However, in a previous item on tonight’s agenda, the Board considered amendments to the TIRZ Administration Policy and Guidelines that would increase the grant/reimbursement amount from $25,000 to $50,000 per qualifying project. If this amendment is approved, the funding amount requested by Saint James Church could be considered in alignment with the TIRZ Administration Policy and Guidelines; however, if the amended TIRZ Administration Policy and Guidelines are not approved by the Board, the request would exceed the $25,000 reimbursement limit.
• The TIRZ Administration Policy allows the Board to determine if a meritorious exception to the established funding limits should be considered for worthy projects.
FINANCIAL IMPACT:
• The current available funds in this account for FY24 are $300,000.
BACKGROUND INFORMATION:
• Under Chapter 311 of the Texas Tax Code and Chapter 380 of the Texas Local Government Code, the TIRZ Board has the authority to make loans or grants of TIRZ funds for the purpose of promoting local economic development and stimulating businesses and commercial activity within the reinvestment zone.
• The proposed project(s) is an eligible project in the TIRZ No. 1 Project Plan under the category of Vacant/Underutilized Sites/Buildings, which is defined as “relatively smaller projects (under $5.0 million) for the incremental redevelopment of vacant/underutilized Town Center sites or buildings.” Specific activities eligible for TIRZ No. 1 funding under the Vacant/Underutilized Sites/Buildings category include:
• Environmental Remediation and associated Interior/Exterior Demolition
• Historic Façade Restoration Improvements/Easements
• Acquisition and Restoration of Historic Sites (public projects)
• Street, Utility, and Streetscape Improvements
• Municipal Land Acquisition
• Critical Maintenance
• Fire Suppression