Title
Consider/Discuss/Act on a Resolution Approving a Chapter 380 Economic Development Agreement and Project Plan Implementation Agreement with Hope Hardware, LP for the Hope Hardware Building Rehabilitation Project (Critical Maintenance/Fire Suppression Project) Located at 214 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: November 5, 2024
DEPARTMENT: Development Services - Planning Department
CONTACT: Jennifer Arnold, AICP, Director of Planning
Cassandra Bumgarner, Planning Manager
Cameron Christie, Planner I
RECOMMENDED BOARD ACTION:
• Staff recommends approval of the Chapter 380 Economic Development agreement and Project Plan Implementation Agreement.
ITEM SUMMARY:
• The applicant requests an economic development grant from Reinvestment Zone Number One in support of a rehabilitation project at 214 East Louisiana Street (Hope Hardware Building). The request is to assist specifically with the following TIRZ 1 eligible expenses under the Vacant/Underutilized Sites/Buildings project category of the Project Plan:
• Critical Maintenance
o Foundation Repair
o Historic Floor Repair
o Mezzanine Support Construction
• Fire Suppression
o Riser Room Construction
o Stair Reorientation to meet Fire Code
• As proposed, the applicant is requesting $21,295.92 in TIRZ funding to offset the full cost of the rehabilitation project.
• Per the TIRZ Administration Policy, the allocation and/or awarding of TIRZ No. 1 funds for both critical maintenance and fire suppression expenses shall be limited to the lesser of the grant/reimbursement of $100,000 per qualifying project and should be considered on a 50/50 match basis. As the total project cost is $42,591.84, the applicant is requesting funding to cover 50% of that cost, $21,295.92.
FINANCIAL IMPACT:
• The current available funds in this account for FY25 are $400,000.
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(s) is an eligible project in the TIRZ No. 1 Project Plan under the category of Vacant/Underutilized Sites/Buildings, which is defined as “relatively smaller projects (under $5.0 million) for the incremental redevelopment of vacant/underutilized Town Center sites or buildings.” Specific activities eligible for TIRZ No. 1 funding under the Vacant/Underutilized Sites/Buildings category include:
• Environmental Remediation and associated Interior/Exterior Demolition
• Historic Façade Restoration Improvements/Easements
• Acquisition and Restoration of Historic Sites (public projects)
• Street, Utility, and Streetscape Improvements
• Municipal Land Acquisition
• Critical Maintenance
• Fire Suppression