Title
Consider/Discuss/Act on a Second Extension to the Term of the Loan Agreement for Project 4B24-03, Awarded to the City of McKinney, Engineering Department for Chestnut Elevated Storage Tank Improvements, to December 31, 2026.
Summary
COUNCIL GOAL: 5: Enhance the Quality of Life in McKinney
5.2: Promote reinvestment activities in Historic Downtown McKinney that balance the preservation of historic character with current market needs.
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:
• MCDC Project Grant 4B24-03 was originally approved in May 2024 with a term expiring June 30, 2025.
• In June 2025, MCDC approved an extension to June 30, 2026, in June 2025.
• City is requesting a second extension to December 31, 2026.
• Reasons for project delays are related to the discovery that franchise utilities on the site were found to be against the contractor’s operations.
BACKGROUND INFORMATION:
• The Chestnut Elevated Storage Tank serves as an iconic landmark that leads visitors to the Historic Downtown McKinney and the redeveloping McKinney East Side.
• The tank was part of the city’s water distribution system from 1952 until 2003.
• The project to renovate the storage tank was initiated as a result of direction from City Council.
FINANCIAL SUMMARY:
• The request is eligible for MCDC consideration under Section 505.152 of the Texas Local Government Code.
• In FY24, MCDC awarded City of McKinney Engineering Department $500,000 for Project 4B24-03.
SUPPORTING MATERIALS:
• Letter of Request