Title
Conduct a Public Hearing to Consider/Discuss/Act on a Request to Amend and Change the Boundaries and Size of the Tax Increment Reinvestment Zone Number One by Adding Approximately 15.7 Acres of Land, and Accompanying Ordinance
Summary
COUNCIL GOAL: Direction for Strategic and Economic Growth
MEETING DATE: June 16, 2026
DEPARTMENT: Development Services - Planning Department
CONTACT: Lucas Raley, AICP - Director of Planning
Cassie Bumgarner - Planning Manager
STAFF RECOMMENDATION:
• Take action on the associated ordinance.
ITEM SUMMARY:
• Cotton Mill Partners, LTD and Presidium Cotton Mill, LLC have requested that the City of McKinney expand the boundary of the TIRZ No. 1. If the boundary is expanded, they would then be eligible to apply for funding from the reinvestment zone for projects that fall into eligible categories and expenditures.
• This request is the first of its kind and represents a policy decision for the Council on the costs and benefits of expanding the district.
• If expanded, any increase in valuation on the property included would contribute to the TIRZ 1 fund balance, and as such, those funds would then be restricted to eligible project categories and expenditures under the TIRZ No. 1 project plan.
• Otherwise, if the area is not included, any rise in valuation would contribute to the general ad valorem tax revenue and be unrestricted in the general fund.
BACKGROUND INFORMATION:
• This is the first applicant-initiated request to expand the TIRZ No. 1 boundary, and the first time that the City of McKinney has formally contemplated the expansion of the TIRZ No. 1 boundary since its inception in 2010.
• Texas Tax Code Chapter 311.007 outlines the authority of owners of property constituting at least 50 perfect of the appraised value of property in the area to petition for inclusion in the reinvestment zone.
FINANCIAL SUMMARY:
• If the boundary were expanded, any increase in taxable valuation to the added land area would be captured in the fund balance of TIRZ No. 1.
• If expanded, then projects in the new TIRZ No. 1 boundary that are eligible projects and expenditures could request funding from the reinvestment zone.