Title
Consider/Discuss/Act on a Resolution Approving a Fourth Amendment to the 2012 Agreement Concerning Creation and Operation of McKinney Municipal Utility District No. 1, a Fourth Amendment to the 2012 Agreement Concerning Creation and Operation of McKinney Municipal Utility District No. 2, a Second Amendment to the 2022 Amended and Restated Development Agreement, a related Second Amendment to the 2022 Amended and Restated Park Development and Disbursement Agreement with Trinity Falls Holdings, LP and Directing the City Manager to Initiate Annexation Proceedings for the Area Contained in Dissolved MUD 2A Pursuant to Said Agreements
Summary
COUNCIL GOAL: Direction for Strategic and Economic Growth
MEETING DATE: October 20, 2026
DEPARTMENT: Development Services
CONTACT: Paul Grimes, City Manager
Michael Quint, Executive Director of Development Services
Jennifer Arnold, Assistant City Manager
Barry Shelton, Assistant City Manager
Mark Houser, City Attorney
Lucas Raley, Director of Planning
Gary Graham, Director of Engineering
Amy Kinkade, Parks Director
RECOMMENDED CITY COUNCIL ACTION:
• Staff recommends approval of the proposed Resolution approving the Fourth Amendment to the 2012 Agreement Concerning Creation and Operation of McKinney Municipal Utility District No. 1, a Fourth Amendment to the 2012 Agreement Concerning Creation and Operation of McKinney Municipal Utility District No. 2, a Second Amendment to the 2022 Amended and Restated Development Agreement (“ARDA”), a related Second Amendment to the 2022 Amended and Restated Park Development and Disbursement Agreement with Trinity Falls Holdings, LP and Directing the City Manager to Initiate Annexation Proceedings for the Area Contained in Dissolved MUD 2A.
ITEM SUMMARY:
• The City and the Owner, Trinity Falls Holdings, LP, last amended the Development Agreement for Trinity Falls in October 2023. In early 2024, an adjacent property owner, comprised of the entities Shaddock & Shaddock, LLC and Master Developers Heritage Farms, Inc., requested annexation of a 106.516 acre parcel into Trinity Falls pursuant to the provisions of the ARDA. The annexed tract will be identified as Planning Unit 10. Staff have been working with the property owner and Trinity Falls to ensure that the proper land use and development controls are documented and implemented in this Second Amendment to the ARDA. The new lots will be covered by the CCRs and HOA covenants of Trinity Falls. Also, certain adjacent roadway infrastructure for Hardin Road will be constructed by the developer of Planning Unit 10. In short, the property will become integrated into Trinity Falls, and the future homeowners will be subject to MUD taxation. The allowed number of residential units will be increased from 5,304 to 5,683.
In addition, the existing ARDA provides that upon the conveyance of approximately 80 acres of land upon and adjacent to a portion of the Collin County Outer Loop to the City, MUD 2A shall be dissolved. After the MUD 2A dissolution, the City shall have the right to annex the land into the City’s corporate limits. MUD 2A had been previously formed, but it was never activated. This approval will initiate and effectuate the City’s annexation of the 144.727 acres. Related thereto is a MUD 1 and MUD2 land swap to correct a prior error in their respective boundaries. The Resolution will accomplish and satisfy all of these boundary-related issues, going forward. The required petitions for annexation have also been obtained by the affected landowners, and the City, as landowner, will also join in the annexation.
Related to the Second Amendment to the ARDA is an existing park development agreement which addresses certain extended deadlines for completion of park improvements with the various Park Areas, including within BB Owen Park in Trinity Falls. Its amendment is requested to coincide with the provisions of the First Amendment to the ARDA.
REVISED/MODIFIED AGREEMENT EXHIBITS
• The Developer has provided revised exhibits in coordination with the amendments to the Second Amendment to the 2022 Amended and Restated Development Agreement discussed above. The revised exhibits include a new overall MUD map; revised land use, Planning Units, thoroughfare, park phasing, fire service area, floodplain, and major infrastructure maps.
• There are also exhibits of the petitions for annexation, the Second Amendment to the 2022 Park Development and Disbursement Agreement, the Petition for Consent to Annex Land into a Municipal Utility District for Planning Unit 10 (Shaddock).
BACKGROUND INFORMATION:
• Trinity Falls is comprised of two (2) Municipal Utility Districts (MUDs) established in accordance with state law in McKinney’s ETJ. The master planned community contains approximately 1,600 acres of land and has been designed to contain up to 5,304 single family residential dwelling units (prior to the requested amendments) and some limited non-residential uses.
• The Trinity Falls MUDs are governed by a development agreement that was executed by the City of McKinney in 2006 and amended in December 2012, February 2014, November 2016, October 2017, September 2022 and October 2023. The Second Amendment to 2022 Amended and Restated Development Agreement represents the sixth amendment to the 2012 development agreement.
FINANCIAL SUMMARY:
• N/A
BOARD OR COMMISSION RECOMMENDATION:
• N/A