Title
Consider/Discuss/Act on an Extension to the Term of the Third Amended and Restated Loan Agreement for the Grant Awarded to McKinney HUB 121, LLC (Project 4B18-05), from May 15, 2026 to September 30, 2026 to Fulfill the Obligations of the Agreement Executed Between McKinney HUB 121, LLC and McKinney Community Development Corporation, Effective June 24, 2021.
Summary
COUNCIL GOAL: 5: Enhance the Quality of Life in McKinney
5.3: Develop sustainable quality of life improvements within the City.
MEETING DATE: June 25, 2026
DEPARTMENT: McKinney Community Development Corporation
CONTACT: Cindy Schneible, President
ITEM SUMMARY:
* The Third Amended and Restated Loan Agreement for Project Grant 4B18-05 for HUB 121 was approved in June 2021 with a term expiring May 15, 2026.
* An extension of the term of the agreement is requested until September 30, 2026, to facilitate MCDC's payment of the required sales tax grant on Type B sales tax revenue generated from HUB 121 in 2025.
BACKGROUND INFORMATION:
* The grant approved by MCDC for The Pavilion at HUB 121 included:
o $200,000 paid upon completion of eligible project components related to the construction of The Pavilion and receipt of a Certificate of Occupancy;
o Payment of up to a total of $200,000 for years 2022-2025 based upon the collection of Type B sales tax revenue generated from dining and retail sales within the HUB 121 development.
* Grant payments of approximately $8,000 per year were made for years 2022-2024.
* Additional time is needed to process the sales tax grant from Type B sales tax generated in 2025.
* Hub 121 is an entertainment, restaurant, hotel and multi-family development at the corner of Alma Road and SRT within Craig Ranch.
* Programmed events provide entertainment for patrons and visitors to HUB 121.
FINANCIAL SUMMARY:
* The request is eligible for MCDC consideration under Section 505.152 of the Texas Local Government Code.
* Funding allocated for payment of the ...
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