Title
Consider/Discuss/Act on an Ordinance Amending the Fiscal Year 2025-2026 Annual Budget of the McKinney Economic Development Corporation Related to the Cannon Beach Development Agreement
Summary
COUNCIL GOAL: Direction for Strategic & Economic Growth
MEETING DATE: September 15, 2026
DEPARTMENT: Finance Department
McKinney Economic Development Corporation
CONTACT: Chance Miller, Assistant Director of Finance
RECOMMENDED CITY COUNCIL ACTION:
Staff recommends Council approve this ordinance.
ITEM SUMMARY:
This ordinance amends the Fiscal Year 2025-2026 Annual Budget by appropriating $20,870,845 in land sale proceeds within the McKinney Economic Development Corporation Fund for the Cannon Beach Development Agreement. The land has already been sold to Cannon Beach and is financed through a promissory note payable to MEDC. Pursuant to the MEDC Chapter 380 Agreement, as Cannon Beach achieves specified development milestones, portions of the outstanding balance on the promissory note will be forgiven, reducing the amount owed to MEDC.
BACKGROUND INFORMATION:
On May 20, 2025, the City of McKinney, McKinney Economic Development Corporation (MEDC), McKinney Community Development Corporation (MCDC), and Cannon Beach executed a Chapter 380 and Infrastructure Grant Agreement to facilitate the development of the Cannon Beach project.
On December 23, 2025, MEDC sold approximately 36.63 acres of land to Cannon Beach. The land sale was financed through a promissory note payable to MEDC. Under the terms of the Chapter 380 Agreement, Cannon Beach is eligible to receive milestone-based credits that reduce the outstanding balance of the promissory note as specified development milestones are achieved.
Cannon Beach commenced construction of the project in December 2025. This budget amendment appropriates the land sale proceeds within the MEDC Fund to support the financial provisions of the development agreement.
FINANCIAL SUMMARY:
This Ordinance amends the Fisca...
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