Title
Consider/Discuss/Act on a Resolution Authorizing the City Manager to Execute a Roadway Impact Fee and Cash Reimbursement Agreement with LI MCKINNEY TX OWNER, LLC for the Construction of Portions of Bloomdale Road and Dedication of Right-of-Way, Serving an Approximately 22.417 Acre Industrial Development (McKinney Innovation Center), Which is Located on the South Side of County Road 164 (Bloomdale Road), Southwest of Farm to Market Road 543 (Laud Howell Parkway a/k/a Spur 195) and Intersected by Cypress Hill Drive
Summary
COUNCIL GOAL: Direction for Strategic and Economic Growth
(1A: Establish regional infrastructure incentives to increase economic growth)
MEETING DATE: July 15, 2025
DEPARTMENT: Development Services
CONTACT: Gary Graham, P.E., Director of Engineering
Matt Richardson, P.E., Assistant Director of Engineering
Taylor Schauwecker, P.E., Development Engineering Manager
RECOMMENDED CITY COUNCIL ACTION:
• Approval of the Resolution
ITEM SUMMARY:
• This item authorizes the City Manager to enter into a roadway impact fee reimbursement agreement with LI McKinney TX Owner, LLC, for the construction of portions of Bloomdale Road and the dedication of right-of-way, generally located on the south side of Bloomdale Road and the east and west sides of Cypress Hill Drive.
• In conjunction with the McKinney Innovation Center Industrial Development (approximately 22.417 acres), the applicant was required to construct two east bound lanes of Bloomdale Road (extending approximately 2,100 linear feet), three eastbound right turn lanes on Bloomdale Road (extending approximately 600 linear feet), a westbound left turn lane on Bloomdale Road (extending approximately 250 linear feet) and to dedicate the respective rights-of-way (all of which are roadway impact fee credit eligible and shown on the attached roadway construction exhibit).
• The developer spent a total of $2,100,000.00 constructing the roadway sections described above.
• The developer also owed a total of $535,173.33 in roadway impact fees in conjunction with the permitting of three (3) industrial/warehouse spec buildings of the development.
• The developer earned a total of $727,340.71 in roadway impact fee credits for constructing the roadway sections described above.
• Since the maximum assessable roadway impact fee for the development per ordinance is $1,005,272.61, and the total amount spent by the developer constructing the required roadways minus the difference in associated roadway impact fees and impact fee credits earned ($1,907,832.62) exceeds the maximum assessable amount, a reimbursement of the difference ($902,560.01) is necessary.
• Roadway Impact Fee Agreements following the standard template language can be approved administratively. However, the reimbursement of fees above the max assessable amount required additional language to be built into the agreement, thus requiring City Council approval.
BACKGROUND INFORMATION:
• An associated site plan for Bloomdale Industrial (SITE2024-0105) has been approved. An associated final plat may be filed once all required public improvements have been installed and accepted by the City.
FINANCIAL SUMMARY:
• The developer owes a total of $535,173.33 in roadway impact fees for the McKinney Innovation Center development.
• The developer earns a total of $727,340.71 in roadway impact fee credits building the impact fee eligible roadways required for the development.
• The developer spent a total of $2,100,000.00 in construction costs building the impact fee eligible roadways required for the development.
• The delta between the maximum assessable roadway impact fee ($1,005,272.61) and the adjusted amount spent by the developer ($1,907,832.62) constructing the required roadways and roadway impact fees is $902,560.01.
• Upon the dedication, construction and acceptance of the roadway sections contemplated within the proposed agreement, the total amount reimbursed will be $902,560.01.
• The total amount to be reimbursed is currently available in the following projects and funding accounts:
o Fund 21 - Streets (100%) - $902,560.01
• With the approval of this item, $4,604,986.24 will remain in Project ST4229.
BOARD OR COMMISSION RECOMMENDATION:
• N/A