Title
Consider/Discuss/Act on a Resolution Extending the Term Sheet Negotiation Period with the Preferred Development Team (M2G Ventures, LLC.) for the Redevelopment of Approximately 4.75 Acres of City-Owned Property in the Historic Downtown
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: December 17, 2024
DEPARTMENT: Development Services
CONTACT: Michael Quint, Executive Director of Development Services
Kim Flom, AICP, RLA, Assistant City Manager
RECOMMENDED CITY COUNCIL ACTION:
• Approve the resolution.
ITEM SUMMARY:
• On January 2, 2024, and based on the evaluation of the Request for Qualifications (#23-38RFQ) submittals, interviews, and presentations to City Council, approved a resolution entering into an exclusive 180-day negotiation period with M2G Ventures, LLC. (“M2G”) for the redevelopment of approximately 4.75 acres of City-owned property located on and around the property located at 222 N. Tennessee Street. On June 4, 2024, the City Council extended the negotiation period with M2G until December 31, 2024.
• During this exclusive negotiation period, M2G and City were to develop guiding principles for the development, a preferred development concept inclusive of public input, and development terms that will guide the drafting of a comprehensive agreement governing the development of the properties.
• The guiding principles were adopted by the City Council on March 5, 2024. The City Council adopted M2G’s proposed development program at the November 19, 2024, regular meeting. Since this time, Staff and representatives from M2G have been working to negotiate a term sheet. While good progress has been made, additional time is needed to finalize a term sheet before bringing it to the City Council for consideration.
• The proposed resolution further extends the negotiating period with M2G to June 30, 2025. However, the goal is for a term sheet to be ready for the City Council’s consideration and action by the end of the first quarter of 2025.
BACKGROUND INFORMATION:
• A Request for Qualifications (RFQ) is a process through which the City informs members of the development community of a partnership opportunity aimed at redeveloping the properties in question. Interested development teams are permitted to formally respond to the RFQ expressing their interest in partnering with the city. The responding development teams will be interviewed, and a partner(s) will ultimately be selected by the City Council. After that selection, formal partnership negotiations will commence and will conclude with the City Council’s approval of an agreement which will stipulate the terms of the partnership and the development of the properties.
• Additional information regarding this downtown redevelopment initiative may be found on the City of McKinney’s website at: www.mckinneytexas.org/cityproperty <http://www.mckinneytexas.org/cityproperty>.
FINANCIAL SUMMARY:
• N/A
BOARD OR COMMISSION RECOMMENDATION:
• N/A