Title
Consider/Discuss/Act on a Resolution Approving a Chapter 380 Economic Development Agreement and Project Plan Implementation Agreement with The Parks Church for the Critical Maintenance and Historic Façade Restoration Improvements Project Located at 110 E Davis Street
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: October 21, 2025
DEPARTMENT: Development Services - Planning Department
CONTACT: Cassie Bumgarner - Planning Manager
RECOMMENDED BOARD ACTION:
• Staff recommends the approval of the Chapter 380 Economic Development Agreement and Project Plan Implementation Agreement.
ITEM SUMMARY:
• The applicant requests an economic development grant from Reinvestment Zone Number One in support of a critical maintenance project at 110 East Davis Street. The request is to assist specifically with the following TIRZ 1 eligible expenses under the Vacant/Underutilized Sites/Buildings project category of the Project Plan:
• Critical Maintenance
o Re-roofing
o Trenching and installing pipe to redirect water away from the structure to address drainage concerns
• Historic Façade Restoration Improvements
o Brick and stucco restoration and repair
• As proposed, the applicant is requesting $25,400.00 in TIRZ funding to offset the cost of the maintenance project.
• Per the TIRZ Administration Policy, the allocation and/or awarding of TIRZ 1 funds for critical maintenance shall be limited to the lesser of the grant/reimbursement or $100,000 per qualifying project and should be considered on a 50/50 match basis. The allocation and/or awarding of funds for historic façade restoration improvements shall be limited to the lesser of the grant/reimbursement or $50,000 per qualifying project.
• The applicant completed the work before submitting the request for funding. The subtotal of the critical maintenance work was $19,260.00. The subtotal of the historic façade restoration improvements was $15,770.00. The applicant is requesting a total of $25,400.00 in TIRZ funding, which accounts for the 50/50 match for the critical maintenance work. Because the work was completed prior to application, they have not provided multiple bids.
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 No. 1 Project Plan under the category of Vacant/Underutilized Sites/Buildings, which is defined as “relatively smaller projects (under $5.0 million) for the incremental redevelopment of vacant/underutilized Town Center sites or buildings.” Specific activities eligible for TIRZ No. 1 funding under the Vacant/Underutilized Sites/Buildings category include:
o Environmental remediation and associated interior/exterior demolition
o Historic façade restoration improvements/easements
o Acquisition and restoration of historic sites (public projects)
o Street, utility, and streetscape improvements
o Municipal land acquisition
o Critical maintenance
o Fire suppression
FINANCIAL SUMMARY:
• Each year $400,000 is allocated to the “Vacant/Underutilized Sites/Buildings” project category of Reinvestment Zone Number 1 to support project requests under this category. The current budgeted funds in this account for FY26 are $400,000.
• The three Vacant/Underutilized Sites/Building project requests for the October 21 meeting would come from this $400,000 budget. If these three requests were approved with the amounts staff recommended, the remaining FY26 funds would be $174,969.95.
• The applicant’s request meets the policy and guidelines requirements.
• FY26 began October 1, 2025. The projected fund balance at the end of FY25 is $27.8 million with $2.6 million being restricted for transportation. This fund balance is across all of TIRZ1, which includes catalyst projects.