The project is being developed by Dallas-based developer Palladium USA and will offer 172 multifamily units all priced for applicants that make 60% or less of the area’s median income, according to a presentation at the meeting. The project, located at the northeast corner of Virginia Parkway and Carlisle Street, will include a four-story development on about 5 acres of land.
The rezoning request focused on increasing the allowed number of units per acre of land. Under the city’s current code, the developer is allowed 30 units per acre, but the developer requested to raise that allowance to 34 units per acre, said Bob Roeder, acting as a representative of the project applicant.
The increase in units per acre only translates to 20 additional units, for a total of 172, Roeder said. To get the same number of affordable housing units set aside as part of market rate multifamily projects, it would take about 10 multifamily developments, Roeder said.
“This is a zoning case and a project that I think is very small in scope but [has] a much oversized impact on our community,” Roeder said.
McKinney Mayor George Fuller called the saturation of affordable housing units in one project a “huge win.”
The increased density would not have a significant effect on traffic in the area, Roeder said. According to a traffic study completed by the applicant, the additional 20 housing units would increase traffic by 19 additional vehicles in morning peak hours and 22 vehicles during night peak hours, according to Roeder.
“For me initially, the density was a concern ... but for what we’re getting out of the project, it’s very difficult to not support this,” Council Member Geré Feltus said.
The project is also intended to serve families, Roeder said. Over 60% of the units will be two- or three-bedroom units with two bathrooms that are designed for families, specifically those with school-aged children, Roeder said. The development is adjacent to a nearby McKinney ISD elementary school as well as two churches and an existing apartment complex.
The project received a 4% housing tax credit, Roeder said, and the developers are negotiating with the McKinney Housing Finance Corporation to make the development a collaborative effort with the city. McKinney officials have prioritized seeking solutions for affordable housing in recent years, which this project could contribute to.
“It’s just a rare opportunity for us to address a problem that is so profoundly difficult to address,” Council Member Patrick Cloutier said.
Council Member Charlie Philips also spoke in support of the project, as well as David Craig, Craig Ranch developer and Craig International CEO. The rezoning request was unanimously approved by the council.