Title
Consider/Discuss/Act on a Resolution Authorizing the City Manager to Execute a Chapter 380 Economic Development Agreement with McIntyre Phase I Owner, L.P., for the Construction of Certain Segments of Wilmeth Road to Facilitate the Development of an Industrial Warehouse Project in an Area situated East of McDonald Street (State Highway 5)
Summary
COUNCIL GOAL: Operational Excellence
MEETING DATE: April 21, 2026
DEPARTMENT: Engineering
CONTACT: Gary Graham, P.E., PTOE, Director of Engineering
RECOMMENDED CITY COUNCIL ACTION:
• Approval of the Resolution and Agreement.
ITEM SUMMARY:
• This Resolution authorizes the City Manager to execute a Chapter 380 Economic Development Agreement with McIntyre Phase I Owner, L.P., (the “Developer”) that allows the City to encourage the Developer’s investment of $75,000,000 in the development of three or more industrial warehouse buildings containing a cumulative total of at least 600,000 square feet of industrial ground floor space (“Phase I of the Chi McIntyre Development”) in an area north of future Wilmeth Road and east of McDonald Street (State Highway 5) containing approximately 139.077 acres or 60,581,194 square feet of land in the John Duncan Survey, Abstract No. 259 and the J. B. Wilmeth Survey, Abstract No. 984, within the City’s corporate limits.
• The Chapter 380 Agreement requires the Developer to build the full four lane divided roadway section of Wilmeth Road (“Future Wilmeth”) from its intersection with McDonald Street transitioning to a two-lane roadway as it crosses the Dallas Area Rapid Transit railroad right-of-way, including a large drainage culvert near McDonald Street, as well as traffic signal and intersection improvements at McDonald Street.
• The Chapter 380 Agreement contains a number of milestones that must be met by the Developer which will trigger the City’s obligation to reimburse the Developer for up to $8,200,000 in actual costs for the Developer’s design and construction of off-site portions of Future Wilmeth spanning a distance of approximately 3,320 linear feet.
• The Chapter 380 Agreement requires the Developer to:
o Invest at least Seventy-Five Million Dollars ($75,000,000) in Phase I of the Chi McIntyre Development.
o Construct three (3) or more industrial warehouse buildings containing a cumulative total of at least 600,000 square feet of industrial ground floor space in Phase I of the Chi McIntyre Development.
o Build all necessary appurtenances to the development within Phase I of the Chi McIntyre Development.
o Complete Phase I of the Chi McIntyre Development within twenty-four (24) months of their receipt of the first building permit for any industrial warehouse building situated within their property along the north side of future Wilmeth Road.
BACKGROUND INFORMATION:
• The design and construction of Future Wilmeth is identified on both the City’s Impact Fee Roadway Improvement Plan and Capital Improvements Plan. Future Wilmeth Road has also been identified as a necessary economic development generator in the Oak Hollow District. A city-led design process was previously underway, but was paused and ultimately cancelled as the Developer proposed to construct the road more quickly and with less public funding.
• The City is currently obligated through a separate Escrow, Construction, and Roadway Impact Fee Credit Agreement with Sloan Creek, Ltd., and PLF, Ltd., (collectively “Sloan/PLF”) to cause the two southern lanes of this same section of Future Wilmeth to be designed and constructed on right-of-way to be dedicated by Sloan/PLF utilizing funds that were escrowed by Sloan/PLF for that purpose. This obligation will be completed under this agreement by the Developer.
• A separate Roadway Impact Fee Credit Agreement will provide the Developer with roadway impact fee credits for Developer’s design and construction of the on-site portions of Future Wilmeth.
FINANCIAL SUMMARY:
• The original estimated cost of designing and constructing Future Wilmeth was approximately $11,250,000, including $2,200,000 previously escrowed by Sloan/PLF for the southern one-half of the roadway.
• Including this agreement and previously paid professional services, the new estimated cost for designing and constructing Future Wilmeth is approximately $8,800,000, a reduction of approximately $2,450,000.
• Funds for this Chapter 380 Economic Development Agreement are available in ST2228.
BOARD OR COMMISSION RECOMMENDATION:
N/A