McKinney City Council approved a $104 million contract amendment and various budget amendments to fund the second phase of construction for the new City Hall.

The amendment to the existing construction contract with Pogue Construction Co. accounts for a guaranteed maximum price of nearly $104 million for the total cost of the second phase of the project as well as an additional $1 million construction contingency. Phase 1 was approved in September 2021 and accounted for almost $600,000 in pre-construction costs.

Of the $104 million allotted in a unanimous vote by council, just over $1.1 million will go toward the Capital Improvements Program streets project. The streets project includes improvements to parts of Virginia Street and Throckmorton Street to prepare for the new City Hall, according to the city’s website.

Partial funding for the project was supplied by the 2019 bond election, but the council also approved the appropriation of just over $26 million from various city funds to supplement the cost at the meeting. The 2022-23 annual budget and the 2023-27 CIP budget were both amended to provide funding from the city’s general fund, the water and wastewater fund and American Rescue Plan Act funds. TIRZ1 funds, which are funds collected by capturing any growth in property tax value within a designated area of the city, were also reappropriated for the project.

Patricia Jackson, the facilities construction manager for the city of McKinney, presented the item at the Oct. 18 council meeting, detailing the process for collecting bids for the contract and citing various features of the new facility.

“In all of my 17 and a half years with the city of McKinney, I have never been happier to present an item as I am this one for the City Hall,” Jackson said.

The new City Hall, located at 401 E. Virginia St., is set to break ground at an event Oct. 24. The project is expected to be completed in October 2024, according to construction schedule documents.