McKinney City Council members approved a budget amendment in September appropriating nearly $20.9 million to an existing development agreement for the Cannon Beach surf resort.
In a nutshell
The appropriation does not represent new incentive funding for the project but instead reflects a land sale made by the McKinney Economic Development Corp. for the Cannon Beach project. MEDC President and CEO Michael Kowski spoke about the action during a Sept. 15 board meeting.
“This is not a new incentive agreement,” Kowski said. “This is not a new deal point. This is not a restructuring of the current agreement.”
Chance Miller, assistant director of finance for the city, said MEDC sold land to the Cannon Development Group in December for a total value of $23 million. The $20.9 million appropriation allows MEDC to redirect budgeted land sale proceeds back to the project as it meets development milestones.
MEDC and the McKinney Community Development Corp. executed a Chapter 380 economic development agreement for the project in May 2025, according to a city document. Through the agreement, the Cannon Development Group is eligible to receive milestone-based credits that reduce the total amount it owes to MEDC for the land purchase.
MEDC board members voted unanimously to recommend approval during the meeting. McKinney City Council approved the fiscal year 2025-26 budget amendment as part of its consent agenda during a meeting held later the same day.
About the project
Developers broke ground on Cannon Beach in December 2025. The $200 million surf resort was announced in 2024 and is expected to deliver a 3-acre surf lagoon, a lazy river and a mineral hot springs circuit. Its first phase is projected to open in 2027.
