Title
Consider/Discuss/Act on a Request for TIRZ #1 Funding for a Small Area Plan along State Highway 5
Summary
COUNCIL GOAL: Direction for Strategic and Economic Growth
MEETING DATE: December 16, 2025
DEPARTMENT: Development Services - Planning Department
CONTACT: Hayley Angel, AICP, Planning Manager
Lucas Raley, AICP, CNU-A, CFM, Director of Planning
RECOMMENDED BOARD ACTION:
• Staff is requesting approval of requested TIRZ 1 funding of up to $300,000 for a small area plan along the State Highway 5 corridor.
ITEM SUMMARY:
• The City requests funding from Reinvestment Zone Number One in support of a small area plan along the State Highway 5 corridor. The funding would include hiring a consulting firm to develop a plan focusing on the land uses, redevelopment, and overall identity (or identities) of the corridor. While the specific scope would not be determined until a consultant is under contract, the plan could potentially incorporate the following elements:
o Existing conditions report, including assessing specific development challenges along the corridor and a redevelopment analysis
o Market assessment, including a review of the potential market for different land uses
o Community engagement, including working with multiple stakeholder groups and leading a steering committee
o Visioning, including establishing an overall vision for the redevelopment of the corridor that is community driven and catalyst sites
o Implementation plan, including identifying funding sources, actionable items to implement the vision, and potential recommendations for changes to the zoning ordinance
• As proposed, the City is requesting up to $300,000 in TIRZ funding to facilitate this small area plan.
• The proposed small area plan would support TIRZ No. 1 by encouraging redevelopment and increased property values, offering additional information in decision making (such as a vision or catalyst site identification), and identifying additional funding mechanisms to support eligible TIRZ projects.
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 as an administrative cost.
• The ONE McKinney 2040 Comprehensive Plan was adopted in October 2018 and outlined both citywide and district specific strategies for implementation. A Top Priority Implementation Measure was to consider the creation of a specific development code to ensure desired development patterns along the State Highway 5 corridor.
• Given the variety of stakeholders and differing development conditions, staff recommends pursuing a small area plan prior to considering a change to the development standards. A small area plan would rely on community engagement to develop a vision for the corridor’s development and inform or recommend development standards to achieve this vision.
FINANCIAL SUMMARY:
• Staff’s request exceeds the allotted amounts available under this project category. As such, approval of the $300,000 requires a budget amendment. This budget amendment would be required to fulfill staff’s request and is included in this agenda item. The budget amendment is ultimately subject to City Council’s approval.
• FY26 began on 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 TIRZ No. 1.