The city of McKinney reached a settlement agreement with Arch Resorts at Tuesday's city council meeting. According to the settlement agreement approved by McKinney City Council, the city will pay approximately $1.9 million from its fund balance. The $1.9 million includes attorney fees, loss of income during the period of time Arch Resorts was not able to operate and purchasing easements for rights of way needed for utilities, Mayor George Fuller told Community Impact Newspaper. The agreement approved at Tuesday's meeting settles the argument between the city, county and Arch Resorts but does not say whether the city or county has authority to regulate outside the city limits. Arch Resorts sued McKinney in 2015 regarding the resort's proposed development of an RV Resort. One issue at hand involved the county’s permitting authority in McKinney’s extraterritorial jurisdiction, so McKinney joined the case as a third-party defendant, according to Collin County documents. On Nov. 6, Collin County Commissioners Court approved a settlement agreement related to a lawsuit between Arch Resorts. According to the settlement agreement approved by Commissioners Court, the city of McKinney would agree to dismiss all claims against Collin County in the action and will reimburse the county for its “reasonable attorneys’ fees and costs incurred in this litigation,” totaling $19,510.76. This payment is included in the $1.9 million agreement approved during Tuesday's meeting. Council also approved the rezoning of 44.42-acres of Arch Resorts from agricultural district to planned development district. This allows the development to be used for commercial and multi-family residential uses adding ad valorem tax and sales tax from commercial development to the city, according to city documents. The new zoning also means Arch Resorts will no longer be developed as a recreational vehicle park, Fuller said. When site plans are created for the approximately 44-acre parcel of land, the plans will require approval from council.