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 Environmental Remediation and Demolition at the Northeast Corner of Davis and Tennessee 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: May 5, 2026
DEPARTMENT: Development Services - Planning Department
CONTACT: Cassie Bumgarner - Planning Manager
Kyara Robinson - Planner I
RECOMMENDED BOARD ACTION:
• Staff recommends the denial of the applicant’s request for TIRZ No. 1 funding in the amount of $453,439.57 because it exceeds the funding guidelines; however, staff recommends the approval of a proposed resolution in the amount of $50,000 for the project.
ITEM SUMMARY:
• The applicant requests an economic development grant from Reinvestment Zone Number One in support of environmental remediation and interior/exterior demolition project at 121, 129, and 131 South Tennessee Street. The request is to specifically assist with the following TIRZ 1 eligible expenses under the Vacant/Underutilized Sites/Buildings project category of the Project Plan:
o Environmental Remediation and Associated Interior/Exterior Demolition
• Per the TIRZ Administration Policy, the allocation and/or awarding of TIRZ 1 funds for environmental remediation and interior/exterior demolition shall be limited to a maximum of $50,000 per qualifying project or the entire reimbursement and/or grant request, whichever is less. A maximum of $200,000 shall be awarded for qualifying activities during each fiscal year.
• The applicant’s request does not meet the policy and guidelines requirements.
• The applicant completed the work before submitting the request for funding. The subtotal of the Environmental Remediating and Demolition work was $453,439.57. The applicant is requesting a total $453,439.57 in TIRZ funding, which accounts for the cost for the environmental remediation and associated interior/exterior demolition 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 balance of funds in this account for FY26 is $279,000.
• Should the Board choose to award the full request of $453,439.57, a budget amendment will be required to allocate the necessary funds from the TIRZ fund balance. The options for approving a budget amendment include:
o Fund the project by utilizing the remaining allocated funds in the “Vacant/Underutilized Sites/Buildings” balance ($279k) and supplement with general TIRZ fund balance dollars ($174.4k). This would close out the allocation of funds under the “Vacant/Underutilized Sites/Buildings” project category for the remainder of the fiscal year.
o Fund the project entirely from the general TIRZ fund balance. This would reduce the general fund balance by the project amount funded ($453.4k).
o In either situation, the necessary budget amendment would be presented at the next TIRZ meeting and subject to Council approval.
• If the Board chooses to award the staff recommended total of $50,000 according to the funding guidelines, the total remaining balance in the FY26 budget would be $229,000.
• FY26 began October 1, 2025. The projected fund balance at the end of FY25 is $23.8 million with $3.2 million being restricted for transportation. This fund balance is across all of TIRZ1, which includes catalyst projects and previously identified priority projects.