Title
Consider/Discuss/Act on a Resolution Authorizing the Execution of a Chapter 380 Economic Development Agreement and Project Plan Implementation Agreement with TUPPS Brewery for a Build Your Own Business Project (Innovation/Pilot Project) Located at 402 East Louisiana 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: September 30, 2024
DEPARTMENT: Development Services - Planning Department
CONTACT: Jennifer Arnold, AICP, Director of Planning
Cameron Christie, Planner I
RECOMMENDED BOARD ACTION:
• Staff recommends Board consideration of the request with the following conditions:
o The Board approve a Resolution amending the Project Plan for Reinvestment Zone Number One to add “Innovation/Pilot Project” as an eligible Project within the district;
o The City Council approve an Ordinance approving the Project Plan for Reinvestment Zone Number One that adds “Innovation/Pilot Project” as an eligible Project within the district; and
o The applicant execute a Chapter 380 Economic Development Agreement and Project Plan Implementation Agreement for the proposed project.
ITEM SUMMARY:
• The applicant requests $120,000 in grant funding from Reinvestment Zone Number One to launch a Build Your Own Business Program (Innovation/Pilot Project) at 402 East Louisiana Street (TUPPS Brewery).
• As proposed, TUPPS Brewery desires to partner with small businesses for the finish out of up to six existing grain bins located throughout the TUPPS Brewery site. The goal of the Innovation/Pilot Project is to convert these underutilized spaces into unique, small businesses that support homegrown retailers and the larger TUPPS Brewery destination overall.
• The estimated cost to finish out each bin is $20,000, which includes upgrades such as insulation, electrical, heating and cooling, and framing. As such, the applicant is requesting up to $120,000 in TIRZ funding to launch the proposed Innovation/Pilot Project.
• The existing Project Plan for Reinvestment Zone No. 1 does not currently include Innovation/Pilot Projects as a recognized project category. However, in a previous item on tonight’s agenda, the Board considered amendments to the Project Plan to add a “Innovation/Pilot Project” category. If this amendment is approved, the request by TUPPS Brewery could be considered in alignment with the Project Plan. However, if the amendments to the Project Plan are not approved, the request by TUPPS Brewery would not strictly align with the identified projects or eligible expenses for Reinvestment Zone No. 1.
• Should the Board approve the request, Staff will work with the applicant to execute a Chapter 380 Economic Development Agreement and Project Plan Implementation Agreement that establishes the specific parameters for the project, including timing expectations and a requirement for Certificates of Occupancy (COs) to be issued prior to the release of TIRZ funding.
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.