Title
Consider/Discuss/Act on an Ordinance Amending the Fiscal Year 2022-2023 Annual Budget to Provide Funds for the purpose of the TUPPS Brewer Project (4B2009)
Summary
COUNCIL GOAL: Direction for Strategic & Economic Growth
MEETING DATE: April 4, 2023
DEPARTMENT: McKinney Community Development Corporation
CONTACT: Cindy Schneible, MCDC President
RECOMMENDED CITY COUNCIL ACTION:
• Approval of the ordinance.
ITEM SUMMARY:
• This Ordinance will amend the Fiscal Year 2022-2023 Annual Budget of the McKinney Community Development Corporation to provide additional funds for the TUPPS Brewer Project (4B2009).
BACKGROUND INFORMATION:
• MCDC Project #20-09, TUPPS Brewery Expansion Project, was approved by the McKinney Community Development Corporation on June 25, 2020 and by the McKinney City Council on July 7, 2020.
• Additional funding, from MCDC, in the amount of $2,000,000 was approved following a public hearing conducted during a joint meeting with McKinney City Council on December 7, 2021.
• City Council approved funding in the amount of $2,500,000 at the joint meeting with MCDC on December 7, 2021.
• MCDC board approved a 10-year loan, in the amount of $750,000, to the project at the meeting held January 26, 2023, contingent upon receipt of $150,000 from TUPPS. The interest rate on the loan is 4.33%. Interest only payments to be made in the year on.
FINANCIAL SUMMARY:
• Additional funding in the amount of $150,000 was provided by TUPPS and will be appropriated in the MCDC budget for the TUPPS Brewery expansion project.
• Total funding for project #20-09:
o MCDC - $14,083,262 (including $750,000 loan)
o Tupps - $1,400,000
o City - $2,500,000
o Total $17,983,262
• Additional investment by MCDC was made for the acquisition of a 4.3-acre tract of land for the project in the amount of $2,648.493.
BOARD OR COMMISSION RECOMMENDATION:
• MCDC Board recommends approval.