Title
Consider/Discuss/Act on a Resolution Approving a Chapter 380 Economic Development Agreement and Project Plan Implementation Agreement with Melanie Caple & Company LLC for the 114 West Virginia Street Critical Maintenance, Façade Restoration, and Environmental Remediation Project Located at 114 West Virginia 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: December 3, 2024
DEPARTMENT: Development Services - Planning Department
CONTACT: Jennifer Arnold, AICP, Director of Planning
Cassandra Bumgarner, Planning Manager
Cameron Christie, Planner I
RECOMMENDED BOARD ACTION:
• Staff recommends 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, façade restoration, and environmental remediation project at 114 West Virginia Street (Caple & Co.). 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 Plumbing overhaul and roof drain relocation
o Roof repair
o Masonry repairs to back walls
o Electric and fixtures repair and upgrades
• Façade Restoration
o Storefront demolition
o Front elevation siding
• Environmental Remediation
o Mold and asbestos abatement
• As proposed, the applicant is requesting:
o $50,000 in TIRZ funding to offset the cost of the façade restoration and environmental rehabilitation aspects of the project.
o $61,310 in TIRZ funding to offset the cost of the critical maintenance aspects of the project
• Per the TIRZ Administration Policy, the allocation and/or awarding of TIRZ No. 1 funds for critical maintenance expenses shall be limited to the lesser of the grant/reimbursement of $200,000 per qualifying project and should be considered on a 50/50 match basis. As the total project cost for critical maintenance activities is $122,620, the applicant is requesting funding to cover 50% of that cost, $61,310.
FINANCIAL IMPACT:
• The current available funds in this account for FY25 are $378,704.
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(s) 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:
• Environmental Remediation and associated Interior/Exterior Demolition
• Historic Façade Restoration Improvements/Easements
• Acquisition and Restoration of Historic Sites (public projects)
• Street, Utility, and Streetscape Improvements
• Municipal Land Acquisition
• Critical Maintenance
• Fire Suppression