Title
Consider/Discuss/Act on a Request for the Waiver of Roadway Impact Fees in Accordance with the Neighborhood Empowerment Zone Impact Fee Waiver Program for a Proposed Multi-Family Development (Remnant at Greenwood I) Located on the South Side of Fitzhugh Street and on the East and West Sides of South Murray Street
Summary
COUNCIL GOAL: Enhance the Quality of Life in Downtown McKinney
MEETING DATE: March 4, 2025
DEPARTMENT: Development Services - Planning Department
CONTACT: Jennifer Arnold, AICP, Director of Planning
Cassie Bumgarner, Planning Manager
RECOMMENDED CITY COUNCIL ACTION:
• Staff recommends approval of the roadway impact fee waiver request.
ITEM SUMMARY:
• Pursuant to Article III, Section 98-85 (Neighborhood Empowerment Zone, NEZ) of the city’s Code of Ordinances, the applicant requests roadway impact fee waivers for a proposed multi-family development (Remnant at Greenwood I) located on the South Side of Fitzhugh Street and on the East and West Sides of South Murray Street.
• Typically, NEZ Program impact fee waivers can be approved by Staff; however, requests that exceed $50,000 or those that include multi-family residential construction require City Council review and approval.
• The proposed multi-family development consists of 46 units for the McKinney Housing Authority (MHA).
• Approval of the impact fee waiver will result in foregone roadway impact fee revenues of $118,910.
CRITERIA FOR ELIGIBILITY:
• For multi-family projects to receive NEZ Program impact fee waivers, the design and completion of the new construction must be generally compatible with the massing, size, scale, and architectural features of the surrounding neighborhood. Eligibility shall be determined, in part, by reviewing the project against the “Guidelines for New Construction in the NEZ” found in Appendix B of Section 98-85 (Neighborhood Empowerment Zone) of the Code of Ordinances.
• The Historic Preservation Office has reviewed the project against the design guidelines of the NEZ Program and is comfortable that the project is compatible with the surrounding neighborhood. Staff specifically notes the following:
• Massing: The project includes 5 building types, all of which have facades that follow a similar massing pattern as to other properties in the historic McKinney neighborhoods. The façade undulates at regular intervals, providing relief from the length of the building and creating visual interest. The proportions are generally compatible with the rest of the area.
• Size: The project includes both one- and two-story buildings, which are complimentary to the building heights in the neighborhood.
• Scale: Through the use of massing proportions and architectural details, the overall scale of the buildings feels in character with the surrounding neighborhood. The buildings all appear to be of a compatible human-scale. The scale feels particularly noticeable on the facades of the buildings with less architectural details on the rear and sides. There are portions of the buildings, such as the façade of buildings D/F/G that have disrupted the rhythm of solids to voids because of the closeness of doors and windows at irregular intervals. Despite this, the overall scale is compatible.
• Architectural Features: Staff notes that while many architectural features are integrated into the project, the quantity of stone used on the buildings overall is more than what is present in the neighborhood currently; however, the other architectural details add to the compatibility of the development. The project successfully includes several architectural features of the surrounding neighborhood, including:
o Gabled roofs
o Fiber cement board meant to mimic board and batten siding
o Porches and awnings
o Dormers
o Framed windows and doors
BACKGROUND INFORMATION:
• The Neighborhood Empowerment Zone Program (NEZ Program) was established in 2009 and expanded in 2013 to provide a complementary tool for addressing infill projects within the Town Center area of McKinney.
• Roadway impact fees and utility impact fees are imposed by the city on all new development in order to generate revenue for funding or recouping the capital costs of roadway and utility system improvements necessitated by the new development.
• Per Section 98-85 (Neighborhood Empowerment Zone) of the city’s Code of Ordinances, non-residential and residential projects within the Neighborhood Empowerment Zone may receive impact fee waivers based on specified criteria (excerpt below).
Multi-family: Within the NEZ, new multi-family construction, being three or more dwelling units on a single lot and commencing on a lot of record, is eligible to receive roadway impact fee waivers only, provided that the design and completion of the new construction is generally compatible with the massing, size, scale, and architectural features of the surrounding neighborhood. Prior to construction, an application shall be made to the HPO, who will present an eligibility determination for roadway impact fee waivers to the city council for approval or denial based on the proposed construction. The city council shall determine eligibility for impact fee waivers based, in part, on the “Guidelines for New Construction in the NEZ”. All impact fees shall be collected at the time of building permit issuance and remitted to the owner upon completion and final inspection of compliant construction.
FINANCIAL SUMMARY:
• Pursuant to the NEZ Program, impact fees are paid upfront by the developer and are reimbursed following construction and a final inspection to ensure the completed project complies with the NEZ Program approval documents.
• The property is owned by the McKinney Housing Authority. The latest assessed ad valorem value of the property by CCAD is $1,511,307 from 2024. It should be noted, however, that the property is tax-exempt, meaning it does not generate ad valorem revenues for the city.
• To date, seven (7) multi-family developments have been awarded roadway impact fee waivers under to the NEZ Program, totaling $2,664,140 in foregone roadway impact fee revenues to the city.