Title
Conduct a Public Hearing to Consider/Discuss/Act on Certain Amendments to Chapter 150, "Unified Development Code," commonly referred to as the “UDC,” of the Code of Ordinances, City of McKinney, Texas Through the Amendment of Article 3, “Subdivision Regulations,” By Amending Section 309, Entitled “Conveyance of Land for Recreational Areas & Facilities,” by Amending Subsection G, “Payment of Fees in Lieu of Parkland Dedication,” by Adding a New Subparagraph 3 that Establishes a Cap on the Most Recent Average Fair Market Value Per Acre Appraisal Determined by the Collin Central Appraisal District to be Assessed and Collected as Fees in Lieu of Parkland Dedication for New Infill Residential Development Occurring in the Historic Neighborhood Improvement Zone (“HNIZ”) Created by Section 98-83 of the Code of Ordinances, City of McKinney, Texas; and by deleting Table 3-3, “Parkland Dedication and Park Development Fee Credits,” of the UDC in its entirety and replacing it with a new Table 3-3, also entitled “Parkland Dedication and Park Development Fee Credits” reflecting the changes made in Section 309.G.
Summary
COUNCIL GOAL: Enhance the Quality of Life in McKinney
(5.1: Create affordable recreational and cultural arts activities for all ages throughout the city)
(5.3: Develop sustainable quality of life improvements within the City of McKinney)
(5.5: Enhance connectivity to parks & civic facilities, school/education centers, libraries, health care providers, commercial corridors, etc.)
MEETING DATE: September 15, 2026
DEPARTMENT: Parks and Recreation
CONTACT: Amy Kinkade, Director of Parks and Recreation
RECOMMENDED ACTION:
• Approval of the Ordinance.
ITEM SUMMARY:
• The proposed Ordinance places a cap on the most recent average fair market value per acre appraisal determined by the Collin Central Appraisal District that is used in determining the amount to be assessed and collected as fees in lieu of parkland dedication for new infill residential development occurring in the Historic Neighborhood Improvement Zone (“HNIZ”), which was created by Section 98-83 of the Code of Ordinances, City of McKinney, Texas:
o All new infill residential developments being constructed within the Historic Neighborhood Improvement Zone (“HNIZ”) shall have a cap on the average fair market value per acre of land established by the most recent appraisal as adopted by the Collin Central Appraisal District for all or a part of the land being so developed.
o The proposed cap shall not exceed $300,000 per acre.
o If approved, this cap will be applied to any new infill single-family or duplex residential units for which a site plan or plat has been submitted to the Planning Department provided that the plat for the subject property has not yet been recorded as of the effective date of this ordinance.
o If approved, this cap will also be applied to any new infill multi-family residential development for which a site plan or plat has been submitted to the Planning Department provided that a building permit for the subject property has not yet been issued as of the effective date of this ordinance.
• The proposed Ordinance also updates Table 3-3 in the UDC to reflect the changes made by this Ordinance.
• Park development fees at the current rates shall still apply.
• Affordable and senior housing exemptions shall still apply.
• Existing MTC parkland exemptions shall remain in place.
BACKGROUND INFORMATION:
• The City Council previously found that public parks, recreational facilities, and open spaces are valuable assets that advance the public’s health, safety, and welfare, and improve the overall quality of life of the community’s residents.
• The City Council also previously determined that new residential development in the City creates the need for additional parks and recreation resources because of the increased population.
• Requiring that new residential development dedicate parkland and pay park development fees in proportion to its impacts on the City’s parks and recreation resources is recognized as a fair, reasonable, and uniform method of financing these assets that does not impose an unfair burden on new or existing development.
• Section 309 of the UDC requires new residential development to dedicate one acre of parkland outside of the floodplain per 37 dwelling units constructed (with 3 acres of floodplain equating to one acre of parkland, with no more than 20% of any parkland dedication site being allowed in a floodplain).
• The City generally will not accept dedications of land for parks that are less than 10 acres in area because the cost of maintaining many small parks is inefficient and too costly over the long-term.
• The City may, instead of accepting the dedication of parkland, require that a fee be paid in lieu of parkland dedication. The fee to be paid in lieu of dedication is based on the average fair market value per acre of the land which is being subdivided determined at the time of the final plat approval or the issuance of a building permit, as applicable, established by the most recent appraisal of all or part of the subject property as adopted by the Collin Central Appraisal District.
• The current ordinance regarding the payment of fees in lieu of parkland dedication was last updated in February of 2022.
• The current ordinance allows the City Council to adjust the amount of assessed value based on any difference between an independent appraisal of the land being developed and the Appraisal District’s valuation.
• The City has also created a Historic Neighborhood Improvement Zone (“HNIZ”) under Section 98-83 of the McKinney Code for the purpose of preserving the City's unique and historic neighborhoods while encouraging property owners to maintain and/or rehabilitate their residences, and the City Council desires to balance the needs of the HNIZ with the needs of parkland dedication.
• December 16, 2025 - Council reviewed the ordinance regarding the payment of fees in lieu of parkland dedication and requested Staff for options to address the high parkland cash in lieu of fees for Downtown infill.
• April 21, 2026 - Staff presented Dr. John Crompton’s suggested options; Council requested Staff to refine them.
• July 12, 2026 - Staff presented new recommendations for addressing the payment of fees in lieu of parkland dedication and received direction from the City Council.
FINANCIAL INFORMATION:
• Under this scenario utilizing a $300,000 CCAD value cap and applying it to two developments within the HNIZ that have already paid the fee, the following table illustrates what the financial difference would be, which is a $19,734 reduction in parkland fees that would have been received.
SUPPORTING MATERIALS:
Ordinance
Presentation
Current Ordinance Redlined