Title
Consider/Discuss/Act on a Resolution Approving a Chapter 380 Economic Development Agreement and Project Plan Implementation Agreement with SWHU Ying Wang, LLC for the Critical Maintenance and Historic Façade Improvements at 101 N McDonald
Summary
COUNCIL GOAL: Enhance the Quality of Life in McKinney
(5.2: Promote reinvestment activities and ordinance changes in McKinney’s historic downtown that balance preservation of historic character and current market needs)
MEETING DATE: October 20, 2026
DEPARTMENT: Development Services - Planning Department
CONTACT: Cassie Bumgarner, Planning Manager
Lucas Raley, AICP, CNU-A, CFM - Director of Planning
RECOMMENDED TIRZ BOARD ACTION:
• Staff recommends that the TIRZ 1 Board deny the requested Chapter 380 Economic Development Agreement and Project Plan Implementation Agreement by the applicant due to the request exceeding the funding policies in the TIRZ 1 Administrative Policy and Guidelines; however, Staff recommends the TIRZ 1 Board approve an amended agreement that meets the policies.
ITEM SUMMARY:
• The applicant requests an economic development grant from TIRZ 1 in support of critical maintenance and historic façade improvement project at 101 N McDonald. The request is as follows:
o The applicant is requesting $200,000 in TIRZ funding to offset the cost of the Critical Maintenance and Historic Façade Improvement project including:
§ HVAC, plumbing, electrical, and roofing
§ Exterior brick restoration
o The applicant partially completed the work before submitting the request for funding, which is the reason for a lack of multiple bids.
o The total cost of the critical maintenance and historic façade improvements work is estimated at $271,061.93.
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 is an eligible project in the TIRZ 1 Project Plan under the category of Vacant/Underutilized Sites/Buildings, with eligible expenditures in the categories of critical maintenance and façade renovation.
FINANCIAL SUMMARY:
• The applicant has requested $200,000 of critical maintenance and historic façade improvement expenditure reimbursement.
• The applicant’s request exceeds the funding guidelines:
o Per the approved TIRZ 1 Administration Policy and Guidelines, the applicant is eligible to receive up to $91,336.16 for façade improvement and critical maintenance expenses under the Vacant/Underutilized Sites/Buildings project type. This amount includes 50% of the critical maintenance improvements/expenditures completed in 2026 ($41,336.16) and $50,000 for façade improvements.
o Under the Meritorious Exception provision of the Administration Policy and Guidelines, the Board has the authority to exceed stated funding caps for worthy projects. Meritorious Exceptions should generally adhere to the following (though not explicitly required):
o Grant/reimbursement amounts should not exceed $200,000;
o Grant/reimbursement should require a 50% match; and
o Additional funding through TIRZ should not be awarded for a specific period of time, as determined by the Board.
• Each year $400,000 is allocated to the “Vacant/Underutilized Sites/Buildings” project type of TIRZ 1 to support project requests under this type. The applicant’s request meets the policy and guidelines requirements, which are included as an attachment for this item.
• This meeting is the first of the FY27 fiscal year, and as such, there is $400,000 of budgeted funding in the FY27 allocation which could fund this and other requests considered today. A financial forecast for the TIRZ 1 fund balance is attached to provide a comprehensive view and provide broader context of the current and anticipated fund balance through FY31 to aid board members as funding requests are considered.
• Meritorious Exceptions: The TIRZ Board retains full authority on a case-by-case basis to determine if a meritorious exception to these policy guidelines shall be made for worthy projects. Reimbursement or grant requests for meritorious exceptions shall be brought before the Board for consideration and action. These requests shall be limited to the lesser of the grant/reimbursement or $200,000 per qualifying project and should be considered on a 50/50 match basis, up to $200,000 matched. For those reimbursement or grant requests that receive a meritorious exception, additional funding through the TIRZ reimbursement or grants should not be awarded for a specific period of time, as determined by the Board. Specific findings shall be made in any meritorious exception award to avoid precedent in subsequent applications. Examples of such findings could be that rehabilitation costs far outweigh the value of the improvement or there are multiple critical maintenance items that need to be addressed.