Title
Consider/Discuss/Act on a Resolution Approving a Chapter 380 Economic Development Agreement and Project Plan Implementation Agreement with Shorty’s McKinney LLC for the Environmental Remediation, Fire Suppression, Historic Façade Restoration Improvements, and Critical Maintenance at 109 N Kentucky Street
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 approve the revised Chapter 380 Economic Development Agreement and Project Plan Implementation Agreement that meets the funding policies.
ITEM SUMMARY:
• The applicant requests an economic development grant from Tax Increment Reinvestment Zone Number One in support of an environmental remediation, historic façade improvement, fire suppression, and critical maintenance project at 109 N Kentucky Street. The request is as follows:
o The applicant is requesting $91,390 in TIRZ funding to offset the cost of the project. The project consisted of:
§ Fire suppression in hood system and DFS fire systems
§ Removal of rubble from ceiling and subsequent ceiling renovation
§ Façade work
o The applicant completed the work before submitting the request for funding, which is why there are not multiple bids presented in support of this application.
o The total investment by the applicant in the project was $718,264.14, which accounts for the cost of both TIRZ-eligible and ineligible expenditures. The applicant is requesting an eligible portion of that cost to be reimbursed.
o Staff reviewed the requested funding amounts and identified funding amounts that are within the appropriate expenditure thresholds for eligible expenditures, which totals $65,425.75.
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 fire suppression, critical maintenance, and façade renovation.
FINANCIAL SUMMARY:
• The applicant is requesting $91,390 in TIRZ funding as follows:
o $25,000 - Environmental Remediation, Historic Façade Restoration Improvements
o $17,500 - Street, Utility, and Streetscape Improvements
o $23,890 - Critical Maintenance
o $25,000 - Fire Suppression
• Staff has reviewed the request and found that the expenditures and categories were not correctly assigned. As staff reviewed, the applicant has the following eligible request:
o $43,450 - Environmental Remediation, Historic Façade Restoration Improvements
o $27,051.50 - Fire Suppression (50/50 match would come to $13,525.75)
o $16,900 - Critical Maintenance (50/50 match would come to $8,450.00)
• These come to a total that meets the funding guidelines of $65,425.75. Staff has discussed this total with the applicant, who understands how this meets the funding total and is amenable to the staff recommended amount of $65,425.75. This is what staff recommends the TIRZ 1 Board to approve.
• 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 this afternoon.
• Additionally, 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.