McKinney council votes to expand TIRZ No. 1 boundaries

This is the first applicant-initiated request to expand the TIRZ No. 1 boundaries since the zone was created in 2010, according to a city document. Cotton Mill Partners and Presidium Cotton Mill, both land owners of the 15.7 acres, submitted a petition to be annexed into the TIRZ.

The background

The property being added is slated for development of the Presidium Cotton Mill, a multifamily mixed-use project that could provide more than 1,100 multifamily units, office space and retail. The project will be located on a 33-acre site directly south of the McKinney Cotton Mill and will be developed by Presidium in partnership with Cotton Mill Partners.

Multifamily buildings and an office building will be developed on the land that is being added into the TIRZ No. 1 boundaries, according to a site plan.

How it works

TIRZs are special financing districts that capture projected tax revenue increases within a defined area and reinvests those dollars into public improvements, according to McKinney’s website. McKinney has two TIRZ districts:

• TIRZ No. 1
  • Boundaries include downtown McKinney and properties along SH 5
• TIRZ No. 2
  • Boundaries include McKinney National Airport located east of SH 5

“The implications of this from a financial perspective is that if the boundary were expanded to include this area, any increase in the taxable valuation would be added to and captured in the TIRZ No. 1’s fund balance,” Raley said. “If it were not to be included in that TIRZ No. 1 boundary and development were to occur, that increased property value that we can assume would occur would go into the general fund and not be restricted.”

What they’re saying

Bob Roeder of McKinney-based law firm Abernathy Roeder Boyd Hullett spoke on behalf of the landowners that submitted the petition. The property was not initially included in the TIRZ boundaries because state law limits how much residential land can be included.

“State law provides the land owners themselves can bring it in by petition if it’s accepted by the council and the TIRZ board,” Roeder said.

The property is part of the city’s Town Center study and should be included in the same TIRZ boundaries as other properties included in that study, he said. Landowners are not requesting funding at this time but are interested in being included in the boundaries, he said.

“We’re trying to jump that barrier to start with,” Roeder said.