Title
Consider/Discuss/Act on a Resolution Authorizing the City Manager to Execute a Roadway Impact Fee and Cash Reimbursement Agreement with RG McKinney Commerce Center Owner LLC for the Construction of Portions of Redbud Boulevard and Dedication of Right-of-Way, Serving an Approximately 19.63 Acre Industrial Development (McKinney Commerce Center), Which is Located on the West Side of Redbud Boulevard, on the East Side of U.S. Highway 75 (North Central Expressway) and to the North of Wilmeth Road
Summary
COUNCIL GOAL: Direction for Strategic and Economic Growth
(1A: Establish regional infrastructure incentives to increase economic growth)
MEETING DATE: November 18, 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 RG McKinney Commerce Center Owner LLC, for the construction of portions of Redbud Boulevard and the dedication of right-of-way, generally located on the east side of U.S. Highway 75 (North Central Expressway) and to the north of Wilmeth Road.
• In conjunction with the development of McKinney Commerce Center (approximately 19.63 acres), the applicant was required to construct two southbound lanes of Redbud Boulevard (extending approximately 956 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 an approximate total of $935,802.00 constructing the roadway sections described above.
• The developer also paid a total of $549,275.00 in roadway impact fees in conjunction with the permitting of three (3) industrial/warehouse spec buildings of the development.
• The maximum assessable roadway impact fee for the development per ordinance is $639,913.91, and the total amount spent by the developer constructing the required roadways and paying the associated roadway impact fees is $1,485,077.00.
• Due to the developer having previously paid to the City the required impact fees for the roadway improvements, the adjusted cost to the developer exceeds the maximum assessable impact fee for the roadway project. Accordingly, the City shall make payment to the Developer of $549,275.00, said amount being equal to the total impact fees paid by the Developer.
• 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 McKinney Commerce Center (SITE2024-0066) has been approved. An associated final plat (PLAT2025-0018) has been approved and may be filed once all required public improvements have been installed and accepted by the City.
FINANCIAL SUMMARY:
• The developer paid a total of $549,275.00 in roadway impact fees for the McKinney Commerce Center development.
• Upon the dedication, construction and acceptance of the roadway sections contemplated within the proposed agreement, the total amount reimbursed will be $549,275.00.
• The total amount to be reimbursed is currently available in the following projects and funding accounts:
o RIF-Zone E - $549,275.00
BOARD OR COMMISSION RECOMMENDATION:
• N/A