Title
Conduct a Public Hearing to Consider/Discuss/Act on a Petition to Annex (Case No. 24-0004A) and a Request to Zone the Subject Property to “MF36” - Multi-Family Residential District (Case No. 24-0104Z), Located on the West Side of County Road 161 and Approximately 2,050 feet North of County Road 124, and Accompanying Ordinance(s)
Summary
COUNCIL GOAL: Direction for Strategic and Economic Growth
(1C: Provide a strong city economy by facilitating a balance between industrial, commercial, residential and open space)
MEETING DATE: March 17, 2026
DEPARTMENT: Development Services - Planning Department
CONTACT: Lucas Raley, AICP, CNU-A, CFM, Director of Planning
Caitlyn Strickland, AICP, Planning Manager
Kaitlin Sheffield, CNU-A, Chief Planner
RECOMMENDED CITY COUNCIL ACTION: Staff recommends approval of the proposed zoning request.
APPLICATION SUBMITTAL DATE: October 8, 2024 (Original Application)
November 18, 2024 (Revised Submittal)
December 19, 2024 (Revised Submittal)
January 15, 2025 (Revised Submittal)
April 21, 2025 (Revised Submittal)
ITEM SUMMARY: The applicant requests to zone approximately 37 acres of land, generally for multi-family residential uses.
Petition to Annex (Agenda Item #24-0004A)
• Pursuant to Chapter 43 (Sub-Chapter C-3) of the Texas Local Government Code, the applicant has submitted a petition for voluntary annexation into the City of McKinney for approximately 37 acres of land.
• The subject property is located in the Extraterritorial Jurisdiction (ETJ) of the City of McKinney. The purpose of the ETJ is to promote the general health, safety and welfare of a person residing in and adjacent to the municipalities. The Subdivision Ordinance applies to property within the ETJ; the Zoning Ordinance does not.
• The subject property is located within the Prosper Independent School District.
• In association with tonight’s annexation request, the property owner is also proposing an Annexation Facilities Agreement outlining the development and infrastructure requirements of the property, including the provision of any applicable proportionality, impact, pro rata or parkland fees. The proposed Annexation Facilities Agreement provides for the standard development, infrastructure, and fee requirements of the city.
• As required by State Law, the applicant has also executed an agreement outlining the provision of municipal services associated with the proposed annexation (known as the Service Plan). This agreement for services will be included as an exhibit to the Annexation Ordinance.
• Staff recommends approval of the proposed Annexation Facilities Agreement and the proposed Annexation Ordinance, which includes the Service Plan for the provision of municipal services (Agenda Item #24-0004A).
Request to Zone (Agenda Item 24-0104Z)
• The applicant is requesting to zone the subject property to “MF36” - Multi-Family Residential District, generally for multi-family residential uses.
• Staff feels that the proposed zoning request will be compatible with the existing and proposed surrounding uses. As such, we recommend approval of the zoning request (Agenda Item 24-0104Z).
• In accordance with State Law, the proposed zoning request was considered by the Planning and Zoning Commission at the February 24, 2026 meeting and received a favorable recommendation by the Commission with a 7-0-0 vote.
• Information regarding the zoning request and Staff’s full evaluation is attached to this agenda item as “24-0104Z - Zoning Request Information.”
BACKGROUND INFORMATION:
1. Annexation and City Services.
• The annexation of land is governed by Chapter 43, Sub-Chapter C-3 of the Texas Local Government Code. This code section outlines the steps and procedures that must be followed in order to incorporate land that is within a municipality’s extraterritorial jurisdiction (ETJ) into its corporate city limits on request of the owner(s). The proposed annexation is following these statutory obligations.
• The subject property that is proposed to be annexed is vacant land.
• The McKinney Fire Department currently provides fire and medical emergency services in this area. Currently, police response is from Collin County. The Texas Local Government Code stipulates that police and fire services must be provided pursuant to the terms outlined in the written agreement for the provision of municipal services (known as the Service Plan).
• The Texas Local Government Code stipulates that solid waste collection must be available pursuant to the terms outlined in the written agreement for the provision of municipal services (known as the Service Plan).
2. Development Requirements.
• All necessary public improvements will be required at time of platting, unless otherwise specified in an approved facilities, development, or annexation agreement.
• Upon annexation into the city, the subject property will be subject to the Zoning Ordinance and Subdivision Ordinance, unless otherwise specified in an approved facilities, development, or annexation agreement.
• Upon annexation into the city, development of the subject property will be subject to the payment of a proportionality fee and/or impact fee, which represents a roughly proportional amount necessary to offset the roadway infrastructure capacity needs of the subject property.
FINANCIAL SUMMARY:
• Annexation of additional property has financial implications for the City. However, based on the size and location of the property being annexed, it is not expected to have a significant financial impact to the city.
• Although the developer will be responsible for upgrading roads and extending utilities as development occurs, the long-term maintenance of these facilities will be the City’s responsibility.
• The ISO rating determines insurance rates in McKinney. Poor availability of water resources in proposed annexed areas could have a negative impact on ISO ratings.
o An ISO rating is based on a 105 point system:
o 40 points for water system (supply, distribution, fire flow, hydrants, maintenance, etc.)
o 50 points for evaluation of the Fire Department itself
o 10 points for alarm systems
o 5 points for code enforcement, plan review, etc.
• The effects of additional annexation on ISO ratings are cumulative. The City’s current ISO rating is 1 on a scale of 1 to 10, with 1 being the best and 10 being the worst.
• Annexed parcels are subject to City property tax. This tract may currently have an agricultural valuation classification with Collin Appraisal District (CAD). An AG exemption is given to properties in active agricultural uses, which allows the property to have a lower appraisal value and thus, lower taxes. When property with an AG exemption is developed, it is subject to rollback taxes for each of the previous five years. As such, the owner would be required to pay County, ISD, and City taxes which had been exempted during that five-year period. Whenever this proposed tract is developed, the City would receive rollback taxes if the property has such an exemption.
OPPOSITION TO OR SUPPORT OF REQUEST: Staff has received no letters of support to this request and no letters of opposition. This does not include emails or letters that may have been sent directly to members of the Council. Staff has not received any citizen comments through the online citizen portal.
BOARD OR COMMISSION RECOMMENDATION: Annexation requests are considered solely by the City Council. However, the associated zoning request was considered by the Planning and Zoning Commission at the February 24, 2026 meeting and received a favorable recommendation by the Commission in a 7-0-0 vote.