Jun 02, 2026 City Council Work Session

[CALL TO ORDER]

[00:00:02]

DID. ARE YOU READY? GOOD AFTERNOON. IT'S 3:03 P.M. IT'S TUESDAY, JUNE THE 2ND, 2026.

THIS IS THE CITY OF MCKINNEY WORK SESSION FOR ONE EAST VIRGINIA STREET COUNCIL CHAMBERS. WE WILL START OUR WORK SESSION. THANK YOU FOR BEING HERE. OUR FIRST ITEM WILL

[PUBLIC COMMENTS ON AGENDA ITEMS]

NO SURPRISES THERE. I WAS VERY. DISAPPOINTED. I'M GOING TO USE THAT WORD IN THE RENDERINGS THAT I SEE IN THIS PRESENTATION. IT MADE ME GO BACK TO LOOK AT ALL OF OUR FEEDBACK AND THE SURVEYS THAT WERE DONE, THAT WE SPENT ALL THAT TIME AND ALL THAT MONEY ON TO GET RESIDENTS OPINION. ONE OF THE MAIN AND I, IF YOU'LL REMEMBER, I DID A SURVEY OF MY OWN FOR FACEBOOK.

A LOT OF YOU SAW IT. I HAVE ALL THE RESPONSES HERE. BUT TODAY I'M HERE TO TALK ABOUT BUILDING HEIGHT ACROSS THE BOARD, WHICH INCLUDED A LOT OF YOU THAT I SURVEYED. YOU SPOKE ABOUT LEAVING THE BUILDINGS NO HIGHER THAN WHAT THEY ALREADY ARE. NOTHING TO STAND OUT THAT MAKES IT LOOK MODERN. THAT DOESN'T FIT INTO OUR ESTHETIC. THE ESTHETICS ARE THE MOST IMPORTANT THING BASED OFF OF THE SURVEY RESULTS. BUT BUILDING HEIGHT. I CHALLENGE YOU TO GO BACK AND LOOK. I WAS JUST LOOKING THROUGH ALL OF THE COMMENTS. ON EACH OF THE PAGES FROM THE EXTRA COMMENTS AND I WOULD SAY. 30, 40 DIFFERENT COMMENTS TALKED ABOUT BUILDINGS AND BUILDING HEIGHT. AND IF YOU'RE GOING TO DO THE SURVEY AND YOU'RE GOING TO ASK US OUR OPINION, I REALLY FEEL LIKE THAT YOU SHOULD WORK ON THAT. LET'S GO TOWARD THAT. INSTEAD OF AWAY FROM THAT. YOU HAVE ONE SHOT AT REDEVELOPING DOWNTOWN AND YOU CAN'T MESS THAT ONE UP.

WE ALL KNOW THAT. I JUST SPECIFICALLY AM HERE TO TALK ABOUT BUILDING HEIGHT TODAY.

THAT'S ALL. I HAVE A LOT OF OTHER OPINIONS, YOU KNOW THAT. BUT THE BUILDING HEIGHT WAS WAS VERY IMPORTANT IN MY OWN SURVEY. 90% OF THE 300 AND SOME ODD PEOPLE THAT RESPONDED, 90% SPOKE ABOUT KEEPING THE BUILDINGS THE SAME HEIGHT. IF YOU CAN'T PAY FOR IT BECAUSE IT'S TOO EXPENSIVE TO KEEP IT THAT LOW, THEN MAYBE YOU SHOULDN'T DO IT. JUST BECAUSE YOU CAN DOESN'T MEAN YOU SHOULD. THAT'S ALL I HAVE TO SAY. APPRECIATE YOUR TIME. THANK YOU, MISS BLACK. OUR NEXT SPEAKER, VLADIMIR PERKOWSKI. IF MISPRONOUNCED, I APOLOGIZE.

THANK YOU FOR YOUR TIME. THANK YOU FOR LETTING ME SPEAK HERE. I'M HERE TO TALK ABOUT SHORT TERM RENTALS IN MCKINNEY, ESPECIALLY IN NEIGHBORHOODS THAT DON'T HAVE HOA. IT'S BEEN A IT'S BEEN A COMPLETE FAILURE FOR PEOPLE THAT DON'T HAVE HOA PROTECTION. LET ME TELL YOU HOW IT'S LIKE TO LIVE IN A HOUSE ACROSS FROM A HOUSE THAT'S A FIVE BEDROOM HOUSE THAT HAS THAT'S ADVERTISED ON AIRBNB, THAT CAN HOST 20 OR MORE PEOPLE. THERE IS NO LIMIT. COME IN, COME IN, HAVE AS MANY PEOPLE AS YOU WANT. THE HOUSE HAS A POOL, HAS A HOT TUB. IT'S A REVOLVING DOOR. EVERY 3 TO 4 DAYS. I LIVED IN A NEIGHBORHOOD SINCE SINCE 2016. I'VE BEEN IN MCKINNEY SINCE 2005. I THOUGHT WHEN I WAS BUYING A HOUSE IN THE NEIGHBORHOOD WHERE WE DON'T HAVE AN HOA, I DON'T NEED AN HOA. MAYBE IT'S EVEN A PERK. BUT YOU KNOW, I THOUGHT, THE CITY WILL PROTECT ME. THE RULES, REGULATIONS, AND IT'S BEEN LIKE THIS. IT'S BEEN FINE. I HAD NO ISSUES, NO PROBLEMS UNTIL THE NEIGHBORS THAT WERE IN THAT HOUSE FOR THE LAST 15 YEARS, THEY SOLD THE HOUSE, THEY MOVED OUT, AND THE PEOPLE THAT BOUGHT IT, THEY MADE IT INTO AIRBNB.

AND SO IT'S NOW, LIKE I SAID, IT'S A REVOLVING DOORS. EVERY FEW DAYS A NEW GROUP OF PEOPLE ARRIVE, CARS COME, YOU KNOW, CARS COME IN AND GO. ALL TYPES, ALL, YOU KNOW, THROUGHOUT THE OLD TIME, YOU KNOW, I'M SORRY. I'M A LITTLE NERVOUS. PARKING SPILLS INTO THE STREETS. NOISE CARRIES THROUGHOUT THE NEIGHBORHOOD, AND EVERY WEEKEND BRINGS UNCERTAINTY ABOUT WHAT KIND OF GATHERING MAY HAPPEN NEXT. WHEN MOST PEOPLE BUY A HOME, THEY EXPECT STABILITY.

THEY EXPECT TO KNOW THEIR NEIGHBORS. THEY EXPECT TO HAVE A SAFE ENVIRONMENT FOR THEIR FAMILIES AND CHILDREN. THEY DON'T EXPECT TO LIVE NEXT TO A COMMERCIAL OPERATION,

[00:05:04]

UNFORTUNATELY, THESE CONVERSATIONS HAVE PRODUCED VERY LITTLE CHANGE. I'VE ALSO FILLED FILLED OUT MULTIPLE POLICE REPORTS TO RELATED ACTIVITIES AT THE PROPERTY. THE BURDEN SHOULD NOT BE ON HOMEOWNERS TO POLICE THE COMMERCIAL OPERATIONS OPERATING NEXT DOOR. WHAT CONCERNS ME IS EVEN MORE IS THE MESSAGES THIS SENDS TO LONGTIME RESIDENTS.

MANY FAMILIES IN THE NEIGHBORHOOD, LIKE MINE, HAVE INVESTED YEARS AND EVEN DECADES INTO BUILDING HOMES IN OUR COMMUNITIES. SOME ARE NOW DISCUSSING WHETHER THEY SHOULD MOVE BECAUSE THEY'RE NO LONGER FEEL THEY HAVE ANY PROTECTION FROM THESE TYPES OF OPERATIONS.

I FIND IT DIFFICULT TO UNDERSTAND WHY MCKINNEY WOULD PROHIBIT SOMEONE FROM OPERATING A MECHANICAL SHOP, RESTAURANT OR RETAIL BUSINESS FROM THEIR HOME BECAUSE OF THE IMPACT ON THE NEIGHBORHOOD, YET ALLOW ESSENTIALLY HOTEL OPERATION IN THE RESIDENTIAL AREA. THANK YOU FOR YOUR TIME. THANK YOU. I APPRECIATE YOU BEING HERE. ANYONE ELSE HERE TO ADDRESS COUNCIL ON AN AGENDA ITEM? ALL RIGHT. WE WILL MOVE ON. THE NEXT ITEM WILL BE DISCUSSION OF OUR REGULAR COUNCIL MEETING AGENDA. DO WE HAVE ANY ANYTHING? NO. ALL RIGHT. WE'LL MOVE ON.

[26-0492 Conduct a Name Clearing Hearing]

AND HE HAS REQUESTED NAME CLEARING HEARING, WHICH IS A CONSTITUTIONAL RIGHT. AND HE WILL ADDRESS THE COUNCIL AND I WILL TURN IT OVER TO HIM. AT THIS POINT. THANK YOU. GOOD AFTERNOON. MAYOR. MEMBERS OF COUNCIL, I'LL READ FROM MY PREPARED REMARKS SO THAT I CAN BE CLEAR AND ACCURATE. MY NAME IS. I SERVE AS A LIBRARY SERVICE MANAGER FOR THE SECURITY OF MCKINNEY PUBLIC LIBRARY SYSTEM FOR ABOUT SIX MONTHS UNTIL MARCH THIS YEAR. I REQUESTED THIS HEARING BECAUSE MY TERMINATING TERMINATION NOTICE CONTAINS ACCUSATION ABOUT MY CHARACTER AND CONDUCT. AND. AND THOSE ACCUSATIONS ARE NOW IN MY PERSONNEL FILE. I'M HERE TO ANSWER THEM WITH DOCUMENTS AND TO ASK THAT THE RECORD BE MADE COMPLETE. I'M NOW ASKING THE COUNCIL TO GIVE ME MY JOB BACK. I UNDERSTAND THAT THE CITY HAD DISCRETION TO END A PROBATIONARY APPOINTMENT. I'M ASKING THAT UNSUPPORTED ACCUSATION OF DISHONESTY, MISUSE OF PUBLIC RESOURCES, CONFLICT OF INTEREST AND UNAUTHORIZED OUTSIDE WORK NOW REMAIN IN MY PERSONNEL FILE WITHOUT CORRECTION, OR AT MINIMUM, WITHOUT MY RESPONSE.

AND SUPPORTING DOCUMENT, INCLUDING INCLUDED WITH THE NOTICE. THE NOTICE GIVES A PERFORMANCE REASON. IT SAYS I FAILED TO MEET THE EXPECTATION OF MY POSITION. IN SIX MONTHS.

I RECEIVED NO WRITTEN WARNING, NO IMPROVEMENT PLAN, AND NO DOCUMENTED COMPLAINTS. A DETERMINATION MEETING. THE DIRECTOR TOLD ME DIRECTLY THAT THE DECISION HAD NOTHING TO DO WITH MY PERFORMANCE, SO I'M NOT HERE TO RELITIGATE THE PROBATIONARY EMPLOYMENT DECISION. I'M HERE BECAUSE THE NOTICE GOES FURTHER, ACCUSES ME, ACCUSES ME OF MISCONDUCT. FIRST, I OWN MY COMPANY. BEFORE MCKINNEY HIRED ME, I FORMED GROUP LLC WITH THE STATE OF TEXAS ON APRIL 29TH, 2025. THE CITY HIRED ME MORE THAN FOUR MONTHS LATER, IN SEPTEMBER 2ND, 2025. THE PRODUCT CITED IN THE NOTICE WAS BUILT THROUGH THAT COMPANY AND NOT FOR THE CITY.

SECOND, I PAID FOR THE DOMAIN MYSELF. I BOUGHT THE LIBRARY SCHEDULER.COM WITH MY OWN CREDIT CARD FOR MY COMPANY. I'M MY HOME ADDRESS. THE INVOICE IS IN YOUR POCKET. THIRD, THE TIMING IS IN THE RECORD. THE DEVELOPMENT HISTORY SHOWS THE WORK WAS DONE ON THE WEEKEND OF FEBRUARY 22ND THROUGH 26, AND ON WEEKDAYS EVENING. I ALSO WANT TO ADDRESS THE EARLY NAME

[00:10:04]

I DID NOT CONCEAL THIS PRODUCT BEFORE I WAS TERMINATED. I INVITED ABOUT 19 COLLEAGUES TO TRY IT TOO. I SENT EACH OF THEM A LOGIN TO DIRECTOR THAT LATER SIGNED. MY TERMINATION WAS ONE OF THOSE PEOPLE. THE CITY EMAIL RECEIVED INVITATION AND LOGIN LINKS ON FEBRUARY 24TH AND 25TH AND THE. THE DELIVERY LOG CONFIRMS THEY WERE DELIVERED AND ALSO TO HER. TWO DAYS PRIOR TO THIS FEBRUARY EMAILS. THERE HAS BEEN CONVERSATION BETWEEN MYSELF AND THE DIRECTOR ABOUT ME DEVELOPING THIS PRODUCT. PRIOR TO FEBRUARY, I WAS TALKING ABOUT THE DEVELOPMENT FROM LATE DECEMBER 2025 TILL THE TIME I WAS DEVELOPING IT. I DATED IT AND I WAS DISCUSSING IT ALL THROUGH WITH THAT DIRECTOR. SO IT WAS NOT CONCEALED. THAT THE NOTICE CAUSED THIS SECONDARY EMPLOYMENT. I HAD NO OUTSIDE EMPLOYMENT EMPLOYER, NO CUSTOMER, NO COMPENSATION AND NO SALE. THE TWO HAD NOTHING. MY INTENT WAS TO ALLOW MAKING A PUBLIC LIBRARY SYSTEM TO USE THIS TOOL AT NO COST. THE NOTICE ALSO SAID, SAYS I CLAIM OWNERSHIP OF A CITY WORK PRODUCT. IT WAS NOT A CITY PROJECT. IT WAS NOT ASSIGNED TO ME. THE NOTICE IDENTIFIES NO CITY POLICY ASSIGNING THIS PRODUCT TO THE CITY, AND I SIGNED NO AGREEMENT MAKING THIS A CITY PROPERTY. I'M ASKING THE COUNCIL, THE CITY TO CORRECT OR RETRACT THE UNSUPPORTED MISCONDUCT ALLEGATION OR ACQUISITION IN THE NOTICE. IF THE CITY WILL NOT CORRECT OR RETRACT THEM. I ASK THAT MY WRITTEN STATEMENT AND EXHIBIT BE PLACED IN MY PERSONNEL FILE WITH THE NOTICE AND INCLUDED WITH ANY FUTURE DISCLOSURE OF THIS NOTICE, SO THAT ANY FUTURE REVIEWER SEES THE ACCUSATION BESIDES THE RECORDS, THE ANSWER THEM. MY CAREER IS IN CYBER SECURITY AND PUBLIC SECTOR TECHNOLOGY. THOSE FIELDS DEPEND ON TRUST AND OFTEN BACKGROUND REVIEW AND ALL SUPPORTED ACCUSATION OF DISHONESTY OR MISUSE OF PUBLIC RESOURCES AND THE PUBLIC PERSONNEL FILE CAN AFFECT FUTURE EMPLOYMENT OPPORTUNITY. EVEN IF THE ACCUSATIONS ARE NOT TRUE. I CAME TO MCKINNEY TO SERVE ITS LIBRARIES. I GAVE THE WORK MY FULL EFFORT. THE DOCUMENT BEFORE THE COUNCIL SHOWS THAT WHAT SHOULD, WHAT HAPPENED AND WHY? I'M ASKING FOR THE RECORD TO BE CORRECTED OR MADE COMPLETE. I THANK YOU FOR YOUR TIME AND ATTENTION. THANK YOU. MR. AND THE MATERIALS THAT THE COUNCIL HAS WILL BE PART OF THE MEETING RECORD AS WELL. THANK YOU, THANK YOU. OKAY. OKAY.

[26-0493 Presentation on the Visit McKinney 2025 Annual Year in Review]

[00:15:06]

THANK YOU, AARON. AND WITH THAT, I STAND FOR ANY. THE VISIT IS POWERFUL. AND AGAIN, MANY OF YOU CAN THINK ABOUT YOUR FIRST VISIT TO MCKINNEY. IF YOU LOOK AT THE ECONOMIC IMPACT OF TOURISM IN 2025, AND THIS IS FROM THE STATE OF TEXAS. DATA SOURCE. THERE WAS $325 MILLION IN VISITOR SPEND IN THE CITY OF MCKINNEY THROUGHOUT THAT YEAR, WHICH WAS A $34.9 MILLION LOCAL TAX REVENUE INCREASE FOR THE CITY. SO THAT IS WHAT VISITORS ARE COMING INTO OUR COMMUNITY.

THEY'RE ENJOYING ALL THAT WE'VE BUILT AND ALL THAT WE HAVE. AND THEN THEY ARE THEY'RE SPENDING MONEY AND LEAVING AND GOING BACK TO THEIR HOMES. IT SUPPORTS OVER 2000 JOBS IN OUR COMMUNITY TODAY. AND IF YOU WERE TO WIPE ALL OF THAT AWAY AND ALL OF THAT SPEND, GO AWAY, OUR RESIDENTS TO MAKE UP FOR THAT, THAT HOLE THAT WOULD BE LEFT WOULD HAVE TO SPEND OVER $1,300 EACH FOR EVERY SINGLE RESIDENT THAT WE HAVE IN OUR COMMUNITY TO SUPPORT OUR, OUR BUSINESSES AND OUR AND OUR FRIENDS AND OUR FAMILIES THAT WORK THROUGHOUT OUR COMMUNITY.

HOTEL DATA FOR THE CITY IS REALLY STRONG. WE IN THE IN 2025, WE DID NOT ADD A NEW PROPERTY. SO WE WERE LOOKING AT YEAR OVER YEAR NUMBERS AND. AND THROUGHOUT ALL OF COLLIN COUNTY, WE HOLD THE HIGHEST OCCUPANCY OCCUPANCY RATE MONTH EVERY MONTH AND THROUGHOUT THE YEAR OF ALL OF THOSE PROPERTIES AT 70.9%. IF YOU LOOK AT DATA, OUR WEEKENDS, LIKE RIGHT NOW AND THROUGHOUT THE REST OF THE SUMMER, WE'LL HAVE FRIDAYS AND SATURDAY NIGHTS THAT ARE CONSISTENTLY OVER 90% OCCUPANCY CITYWIDE WITH SOME OPPORTUNITIES MIDWEEK, WHICH MAKE UP FOR THAT 70.9. WE DO HAVE OPPORTUNITIES, THOUGH. OUR AVERAGE DAILY RATE IS FAIRLY LOW COMPARED TO OUR NEIGHBORS. AND AND THAT FEEDS INTO SOME OF THOSE OTHER SOURCES LIKE REVPAR.

BUT OVERALL, OUR HOTEL OCCUPANCY TAX COLLECTIONS FOR 2025, EVERY YEAR IT CONTINUES TO BREAK. THE PREVIOUS YEAR'S RECORD WAS $3.4 MILLION. ONE OF OUR TASKS WITH THE MCKINNEY TEAM IS TO RECRUIT EVENTS AND PEOPLE TO COME AND STAY OVERNIGHT IN OUR COMMUNITY, AND ONE OF THE WAYS THAT WE FOUND SUCCESS IN THAT IS THROUGH SPORTS. IF YOU LOOK AT THE HISTORY OF MCKINNEY, WE'VE INVESTED A LOT OF MONEY IN OUR SPORTS FACILITIES, AND REALLY MOST OF THEM ARE STATE OF THE ART AND TOP OF THE CLASS. AND SO ONE OF THE OPPORTUNITIES WE SAW WAS TO GO OUT AND TRY TO RECRUIT BUSINESS TO THOSE VENUES AND REALLY LEVERAGE WHAT WE'VE ALREADY DONE IN OUR COMMUNITY. IN 2025, WE HOSTED ANOTHER ROUND OF THE NCAA D2 NATIONAL FOOTBALL CHAMPIONSHIP. IN 2025. WE ALSO RECEIVED A NEW CONTRACT TO EXTEND THAT AGREEMENT IN MCKINNEY AND CONTINUE TO BE THE HOME OF THE D2 FOOTBALL CHAMPIONSHIP AT NEARLY A SELL OUT CROWD THAT PRODUCED ALMOST 600 ROOM NIGHTS FOR THAT EVENT ALONE.

INTERNATIONAL GIRLS CUP WAS A FANTASTIC EVENT, A FIRST YEAR EVENT IN 2025 WITH 115 TEAMS COMING TO MCKINNEY FROM ALL OVER THE COUNTRY AND THE WORLD, 789 ROOM NIGHTS GENERATED. 2025 WAS THE FIRST YEAR OF HOSTING OUR PPA PROFESSIONAL PICKLEBALL ASSOCIATION EVENT AT THE COURTS OF MCKINNEY, BRINGING OVER 11,000 ATTENDEES AND GENERATING 150 PLUS ROOM NIGHTS THERE. AND OF COURSE, CJ CUP AND DRUM CORPS INTERNATIONAL, TWO STAPLES IN OUR COMMUNITY THAT ARE INCREDIBLE TOURISM EVENTS. OUR OUR TEAM SPONSORS SEVERAL THINGS THROUGHOUT THE YEAR. THE ONE I'LL HIGHLIGHT TODAY WAS IN 2025 WAS OUR FIRST YEAR TO SPONSOR THE MCKINNEY CHUPACABRAS. WE HAD A PRETTY INNOVATIVE SPONSORSHIP WITH THEM. WE BECAME THEIR TRAVEL GEAR SPONSOR, SO EVERY TIME THEY LEAVE MCKINNEY, THEY WEAR VISIT MCKINNEY'S LOGO ON THEIR ON THEIR CLOTHING, AND THEY TRAVEL AROUND AND SHOW PEOPLE WHERE THEY NEED TO GO. BUT THE CHAMBER OF COMMERCE HAVE BEEN A FANTASTIC ADDITION TO THE TOURISM PRODUCT. MCKINNEY. AND FOR OUR RESIDENTS THIS YEAR, I THINK THEY HAD NEARLY 4000 PEOPLE AT THEIR INITIAL MATCH.

2025 WAS ALSO ONE OF OUR FIRST YEARS TO HAVE A FULL YEAR WITH OUR NEW VISITOR CENTER STORE STOREFRONT, GENERATING 40 ALMOST $48,000 IN GROSS SALES. ONE OF MY FAVORITE THINGS ABOUT THIS STORE GOES BACK TO A PETER KAGEYAMA QUOTE FROM HIS BOOK, FOR THE LOVE OF CITIES, WHERE HE TALKS ABOUT ANYONE WHO'S WILLING TO BUY A T SHIRT WITH A CITY'S NAME ON IT AND WEAR IT PROUDLY AROUND A COMMUNITY, IS PROBABLY THE BEST LOVE NOTE YOU COULD EVER GIVE TO A COMMUNITY,

[00:20:02]

KEEP IT MOVING. NOTHING TO SEE HERE. IT'S THE KIND OF PLACE WHERE, IF YOU KNOW, YOU GO. AND AGAIN, IN A LITTLE CHEEKY HUMOR WAY OF KIND OF GIVING AN ELBOW AT ALL OF OUR DALLAS FOLKS WHO THINK THAT MCKINNEY IS OKLAHOMA, THIS IS OUR WAY OF SHOWING THEM THAT THERE IS A LOT TO SEE IN MCKINNEY, AND WE'RE EXCITED TO HIGHLIGHT THAT EACH AND EVERY DAY OF OUR WORK. THE LAST SLIDE I THINK I HAVE FOR YOU TODAY WAS A COUPLE OF AWARDS THAT OUR TEAM CAME BACK WITH FROM ONE OF OUR STATE ASSOCIATIONS. THIS HAS BEEN A CHALLENGE TO WIN AWARDS AT THIS ASSOCIATION, BECAUSE WE ARE NOW IN A CATEGORY OF EVERY OTHER CITY WITH A BUDGET OVER $1 MILLION, WHICH MEANS WE'RE COMPETING WITH AUSTIN'S AND DALLAS AND AND ALL THE BIG BOYS IN THE TOURISM INDUSTRY. AND SO WE WERE REALLY HAPPY TO COME HOME LAST YEAR WITH THE BEST MEETING AND EVENTS PROMOTION AWARD, WHICH WAS FOR OUR PLAYING CARDS PROMOTION THAT WE GIVE OUT AT OUR SPORTS SHOWS WHEN WE'RE TRYING TO RECRUIT BUSINESS TO MCKINNEY. EVERYBODY LIKES THE NOSTALGIA OF OPENING A PACK OF SPORTS CARDS AND FINDING YOUR BEST PLAYER AND SEEING WHO YOU HAVE IN THAT FOIL PACK. AND SO WE TOOK THAT FOIL PACK AND MADE IT ALL OF OUR SPORTS VENUES.

AND ON THE BACK YOU HAVE ALL THE STATISTICS ABOUT THAT FIELD, ABOUT THAT VENUE, WHETHER THAT'S THE AMOUNT OF COURTS OR FIELDS, IF IT HAS LIGHTS, IF IT HAS PUBLIC RESTROOMS AND THINGS LIKE THAT. SO THAT'S OUR WAY OF KIND OF STANDING OUT WHEN YOU GET JUST A FEW MINUTES TO TALK WITH A PLANNER AND TRY TO BRING MCKINNEY TO THEIR ATTENTION. AND SO WITH THAT, I WILL HAPPILY STAND FOR ANY QUESTIONS IF YOU HAVE ANY, ANYONE. AARON, THANK YOU VERY MUCH. THANK YOU.

THANKS, AARON. I APPRECIATE ALL YOU DO. NEXT ITEM IS 26-0494. AN UPDATE ON ANNEXATION AND

[26-0494 Update on Annexation and Development in the Extra-Territorial Jurisdiction (ETJ)]

[00:25:07]

I ACTUALLY WANTED TO GET UP AND SAY I HATE HAVING TO FOLLOW AARON. HE DID SUCH A GREAT JOB AND HAD SOME REALLY GREAT HIGHLIGHTS. SO I'M GOING TO SHIFT GEARS A LITTLE BIT AND TALK A LITTLE BIT ABOUT WHAT WE'VE BEEN SEEING IN GROWTH AND DEVELOPMENT, IN PARTICULAR WITHIN OUR ETJ IN THE LAST TEN YEARS OR SO. THIS HAS DEFINITELY BEEN A HOT TOPIC, A TOPIC OF FOCUS FOR A LOT OF US. AND SO WE'VE SEEN A LOT OF CHANGE. IT'S PROBABLY LONG OVERDUE TO KIND OF LOOK BACK AND SEE HOW THAT HAS IMPACTED US OVER THE LAST TEN YEARS, AS WELL AS HOW WE LOOK AT A STRATEGY MOVING FORWARD. I WANT TO HIGHLIGHT FIRST BY SAYING, I'M NOT ASKING FOR ANY SPECIFIC DIRECTION FROM THE COUNCIL AT THIS AFTERNOON'S WORK SESSION DISCUSSION, REALLY JUST WANT TO CREATE A PLATFORM FOR US TO BE ABLE TO ENGAGE IN A DIALOG ABOUT WHAT WE'VE BEEN SEEING. I DO ANTICIPATE THAT THIS WILL BE THE FIRST OF PROBABLY A HANDFUL OF DIFFERENT DISCUSSIONS THAT WE HAVE IN THIS FORMAT. SO WITH THAT, I'LL JUMP RIGHT INTO IT.

AS MANY OF US KNOW, SINCE 2017, WE HAVE SEEN A LOT OF CHANGES AT THE STATE LEVEL AS IT RELATES TO LOCAL CONTROL OVER GROWTH AND DEVELOPMENT. AND THAT HAS ALL KIND OF BEEN UNDER THIS BIG UMBRELLA OF AFFORDABLE HOUSING, HOUSING SUPPLY AND MARKET FLEXIBILITY. SOME OF THE KEY BILLS THAT WE'VE SEEN PASSED IN THE LAST TEN YEARS ARE HIGHLIGHTED HERE, KIND OF PUT THEM INTO SOME BIG BUCKETS. ANNEXATION AND ETJ REFORM BILLS, ZONING AND HOUSING, PREEMPTION BILLS, CONSTRUCTION STANDARD BILLS, AND THE PROPERTY TAX REFORM BILLS, ALL OF THOSE THINGS KIND OF IMPACT HOW WE'RE ABLE TO GOVERN AND THE AUTHORITY THAT WE HAVE AS A COMMUNITY TO MANAGE GROWTH AND DEVELOPMENT. AND MOST OF WHAT WE'RE GOING TO TALK ABOUT TODAY ARE, IF NOT ALL, OF WHAT WE'RE GOING TO TALK ABOUT TODAY IS KIND OF THAT ANNEXATION AND ETJ REFORM PIECE THAT SAID, AND I DON'T HAVE IT HIGHLIGHTED HERE, THE PROPERTY TAX REFORM BILL OF 2019 IS PARAMOUNT IN THIS DISCUSSION ABOUT ETJ AND ANNEXATION, BECAUSE WHAT THAT BILL DID IN 2019 IS IT COMPLETELY LOWERED OUR ABILITY TO GENERATE REVENUES AS A COMMUNITY IN ORDER TO SUPPORT THE GROWTH AND DEVELOPMENT THAT WE HOPE TO ACHIEVE? SO WHAT DOES ALL OF THIS MEAN FOR THE DEVELOPMENT COMMUNITY? I'VE GOT A LIST HERE. THIS IS NOT AN ALL INCLUSIVE LIST, BUT I THINK IT'S KIND OF THE BIG TICKET ITEMS IN TERMS OF WHAT THESE RECENT CHANGES HAVE MEANT FOR THE DEVELOPMENT COMMUNITY. THEY NOW HAVE MORE DEVELOPMENT FREEDOMS, NOT JUST WITHIN THE CITY LIMITS, BUT ESPECIALLY WITH IN THE ETJ, OUR REDUCED LAND USE CONTROL ABILITY TO DELIVER INFRASTRUCTURE AND SERVICE. AND OUR PLANNING AUTHORITY IS DEFINITELY BEEN IMPACTED BY THESE RECENT CHANGES. IT ALSO MEANS THAT THESE DEVELOPMENTS OUT IN THE IN THE HINTERLANDS, IF YOU WILL, MAY HAVE HIGHER INFRASTRUCTURE COSTS, WHICH IS DEFINITELY NOT A PERK IF YOU'RE A DEVELOPER. HOWEVER, WHAT THE STATE HAS ALSO DONE IS KIND OF OPENED THE DOOR FOR MORE UPFRONT CAPITAL FINANCING IN THE FORM OF SPECIAL DISTRICTS. AND WE'LL TALK A LITTLE BIT MORE ABOUT THAT LATER ON IN THE PRESENTATION. BUT IT'S JUST I THINK IT'S A BIG PIECE OF THE DISCUSSION. AND WHEN YOU BUNDLE ALL OF THOSE THINGS TOGETHER, WHAT IT REALLY MEANS IS THAT PRIVATE PROPERTY OWNER AND THE PRIVATE DEVELOPER HAVE A MUCH STRONGER BARGAINING POWER THAN THE CITY DOES WHEN IT COMES TO GROWTH AND DEVELOPMENT. NOW, BOTH IN THE CITY AND OUT OF THE CITY. AND THAT MAY BE A LITTLE BIT OF A PROVOCATIVE THING TO SAY IN A PUBLIC FORUM, BUT IT IS, IN FACT, THE REALITY THAT WE FACE. AND I THINK A LOT OF TIMES WE'LL HAVE DISCUSSIONS HERE AT A AT A PUBLIC MEETING OR IN SMALL GROUPS OR WHATEVER. AND THERE'S ALWAYS SORT OF THIS QUESTION OF, YOU KNOW, WHY IS THE CITY DOING TAKING THIS ACTION? OR WHY IS THE CITY TAKING THIS POSITION? AND A LOT OF IT BOILS DOWN TO THAT BARGAINING POWER SHIFT THAT WE'VE SEEN IN THE LAST TEN YEARS. SO WHAT ARE THESE STATE LAW CHANGES MEAN FOR TEXAS CITIES? NOT JUST MCKINNEY, BUT ALL TEXAS CITIES. IT MEANS WE SHOULD REALLY EXPECT TO SEE MORE LEAPFROG DEVELOPMENT. AND WHAT THAT MEANS IS INSTEAD OF DEVELOPMENT HAPPENING SORT OF IN A CONCENTRIC CIRCLE FROM OUR, YOU KNOW, THE LIMITS OF OUR CITY LIMITS, WE MIGHT SEE IT HAPPEN A HALF A MILE OR A MILE OUTSIDE OF THE CITY LIMITS. AND THAT'S CONSIDERED LEAPFROG DEVELOPMENT. AND THAT'S WHERE THAT HIGHER INFRASTRUCTURE COST COMES IN. THE IMPACTS OF THE ETJ REFORM BILL MEANS THAT WE HAVE DEFINITELY LOST SOME ABILITY TO MANAGE GROWTH. WE'VE LOST THAT LOCAL GROWTH MANAGEMENT CONTROL, AND IT IS ALSO REALLY FRACTURED. OUR ABILITY TO PURPOSELY MASTER

[00:30:06]

WE HAVE BOUNDARY AGREEMENTS AND SERVICE AGREEMENTS FOR OUR NEIGHBORING JURISDICTIONS, JURISDICTIONS, AND SERVICE PROVIDERS, AND THOSE AGREEMENTS HAVE CERTAIN CONDITIONS IN THEM, AND WE WANT TO MAKE SURE THAT WE'RE BEING, I'LL SAY, GOOD PARTIES TO THOSE AGREEMENTS.

AND WE ALSO HAVE HAD PREVIOUS POSITIONS ON SPECIAL DISTRICTS AND HOW WE DELIVER INFRASTRUCTURE. AND SO ALL OF THOSE THINGS ARE VERY IMPORTANT AS WE LOOK AT HOW CHANGES IN STATE LAW IMPACT GROWTH AND DEVELOPMENT, BECAUSE THOSE AGREEMENTS AND THOSE POLICY POSITIONS STILL CAN PREVAIL FOR US. OKAY. SO KIND OF LOOKING BACK AT ALL OF THOSE CHANGES AND THOSE IMPACTS OF THE STATE LAW OF STATE LAW, AND WE'RE LOOKING AT, WELL, WHAT DO WE DO NOW? ALL RIGHT, SO WHAT HAVE WE BEEN DOING IN THE LAST TEN YEARS? AND I KIND OF BROKE IT OUT INTO TWO MAJOR BUCKETS. ONE IS ENCOURAGING ANNEXATION AND THE OTHER IS PROTECTING OUR FUTURE. AND SO THE CARROT, IF YOU WILL, AND ENCOURAGING ANNEXATION IN THE LAST TEN YEARS IS KIND OF SHOWN UP HERE, YOU KNOW, WHETHER OR NOT WE ARE ABLE TO KIND OF SOFTEN ON SOME OF OUR LAND USE POSITIONS THAT WE MAY HAVE TAKEN A HARDER LINE FOR 15 YEARS AGO, REALLY CONSIDERING THOSE DEVELOPMENT VARIANCES THAT HELP GET A PROJECT OFF THE GROUND. WE WENT THROUGH A MAJOR CODE REWRITE TO TRY AND ALLEVIATE THE NEED FOR VARIANCES, OR AT LEAST, YOU KNOW, CAPTURE THOSE AT THE STAFF LEVEL WHERE WE CAN CHANGES IN HOW WE ACTUALLY DELIVER INFRASTRUCTURE AND HOW WE MIGHT PARTNER WITH THE DEVELOPER TO PARTICIPATE IN THE DELIVERY OF MASTER PLANNED INFRASTRUCTURE, OFFERING THE USE OF CITY EMINENT DOMAIN AUTHORITY FOR MASTER PLANNED INFRASTRUCTURE, AND THEN ENTERTAINING AND EXECUTING.

WHAT WE KNOW IS PRE ANNEXATION AGREEMENTS, WHICH BASICALLY GIVES SOME ASSURANCES TO THAT PRIVATE PROPERTY OWNER OR DEVELOPER OF WHAT THEY'RE GOING TO GET BEFORE THEY EVEN ANNEX INTO THE INTO THE CITY. AND THEN, OF COURSE, TAKING SOME POSITIONS ON SPECIAL FINANCING DISTRICTS. THOSE ARE ALL THE CARROTS THAT WE'VE KIND OF BEEN USING TO THE EXTENT THAT WE CAN TO ENCOURAGE ANNEXATION, THE PROTECT OUR FUTURE SIDE OF THAT, OF THAT EQUATION. I WOULD CONSIDER SORT OF THE BLOCKING AND TACKLING THAT WE'VE BEEN TRYING TO DO TO PROTECT OUR ETJ.

AND I WANT TO UNDERSCORE THIS HERE. IF THE DESIRE IS FOR ANNEXATION AND QUALITY ANNEXATION FOR THE CITY, WE CANNOT HAVE THAT IF WE ARE NOT PROTECTING OUR ETJ AND PROTECTING OUR FUTURE. WITHOUT THE ETJ, WE HAVE NO ABILITY TO ANNEX A PIECE OF PROPERTY. AND SO SOME OF THE ITEMS UNDER THE PROTECT OUR FUTURE BUCKET MAY SEEM A LITTLE BIT TOUGH FOR THE PRIVATE SIDE OF THE WORLD, BUT THEY ARE ALL PART OF THAT BIG EQUATION THAT WE'RE LOOKING AT AS A COMMUNITY. SO OUR C, OUR CCN, LOOKING AT THOSE BOUNDARY AGREEMENTS, TAKING KIND OF A

[00:35:08]

OKAY. SO BEFORE WE DIG INTO THAT, TALK A LITTLE BIT ABOUT THE IMPACTS OF SENATE BILL SIX.

THAT IS THE ANNEXATION BILL OF 2017. OF COURSE, WE ALL KNOW THAT SENATE BILL SIX IS THE ONE THAT DID AWAY WITH THE CITY'S ABILITY TO INVOLUNTARILY ANNEX PROPERTY, AND THAT SEEMED PRETTY DAMNING WHEN IT CAME OUT IN 2017. BUT THE REALITY IS WE'VE SEEN QUITE A BIT OF PROPERTIES ANNEXED INTO THE CITY SINCE THEN. STILL, WE'VE HAD 24 TRUE VOLUNTARY ANNEXATIONS COME INTO THE CITY. WE'VE HAD ONE CITY INITIATED ANNEXATION AND NINE ANNEXATIONS UNDER A PRE ANNEXATION AGREEMENT. AND THOSE ARE THOSE AGREEMENTS THAT KIND OF EXISTED BEFORE 2017. SO THESE WERE PRE ANNEXATION AGREEMENTS THAT WERE ULTIMATELY THE IMPACT OF INVOLUNTARY ANNEXATION. AND SO WHEN WE BREAK DOWN THAT TRUE VOLUNTARY ANNEXATION, SOME OF THE THINGS THAT WE'VE KIND OF HERE WE WE BATTLE A BIT IS WHY IS IT SO DIFFICULT TO ANNEX INTO THE CITY OF MCKINNEY? AND SO WE WANTED TO BREAK DOWN THAT VOLUNTARY ANNEXATIONS TO REALLY HIGHLIGHT HOW MANY WE'VE HAD AND ABOUT HOW LONG IT TAKES FOR EACH ONE OF THOSE. SO IF WE HAVE A OF THE ANNEXATIONS WE'VE SEEN SINCE 2017, WE'VE HAD 11 THAT WERE WHAT WE CONSIDER A STANDARD ANNEXATION, MEANING THEY WERE NOT ASKING FOR ANY DEVIATIONS TO THE STANDARD REQUIREMENTS FOR ANNEXATION FEES, INFRASTRUCTURE, SERVICE DELIVERY, ANY OF THAT. IT'S JUST WE HAVE A TEMPLATE FORM THAT WE USE AND THEY'VE AGREED TO IT. AND THEN THEY CAME ALSO IN WITH WHAT WE WOULD CONSIDER A STRAIGHT ZONING DISTRICT. SO C1C2 SINGLE FAMILY. 11 OF THOSE TOOK ABOUT 165 DAYS ON AVERAGE FOR THOSE 11. AND THEN WE HAVE OF THE EIGHT THAT CAME IN WITH A STANDARD ANNEXATION AND A PD ZONING, WHICH AS YOU ALL KNOW, THOSE PD ZONINGS ARE WHERE WE'RE KIND OF NEGOTIATING OR DEVIATING FROM OUR STANDARD ZONING ALLOWANCES. WE HAD EIGHT OF THOSE. THOSE WERE 140 DAYS TO COMPLETE. YOU MIGHT BE WONDERING WHY PD WOULD TAKE LESS TIME ON AVERAGE THAN A STRAIGHT ZONING ON THIS CHART. THE REALITY IS, OF THE 11 THAT WERE STANDARD, WE HAD ONE OR MAYBE TWO THAT WERE JUST PRETTY FAR OUTLIERS. THAT DROVE THE NUMBER OF DAYS ON AVERAGE UP. IF YOU WERE TO REMOVE THOSE OUTLIERS, I CAN'T REMEMBER THE EXACT NUMBER IN TERMS OF TIME, BUT IT WAS WELL BELOW THAT 140. AND THEN THE OTHER THING YOU'RE PROBABLY HONING IN ON IS THOSE NONSTANDARD ANNEXATIONS. WE'VE HAD FIVE OF THOSE COMPLETED SINCE 2017, AND YOU'RE GOING, WHY IN THE WORLD WOULD THAT TAKE OVER A YEAR TO GET COMPLETED? AND I CANNOT UNDERSCORE THIS ENOUGH. THE REALITY IS WHEN IT IS A NONSTANDARD NEGOTIATION, THESE PROJECTS ARE NEGOTIATING EVERYTHING. EVERY DEVELOPMENT STANDARD THAT WE HAVE, EVERY ANNEXATION STANDARD THAT WE HAVE. AND SO WE ARE THEY ARE COMING IN AND SAYING, HERE'S WHAT WE WANT TO OFFER YOU. IT'S ALMOST AS IF THEY DON'T LOOK AT OUR DEVELOPMENT REQUIREMENTS OR ANNEXATION REQUIREMENTS, AND WE'RE KIND OF HAVING TO FOLD BACK IN WHAT'S ACCEPTABLE VERSUS WHAT IS NOT BASED ON WHAT WE KNOW AS AS A STAFF. SO I'VE KIND OF HIGHLIGHTED SOME OF THE KEY THINGS THAT THAT WE SEE IN THOSE NONSTANDARD ANNEXATIONS, COMPLETE FEE WAIVERS, WHETHER THAT BE DEVELOPMENT FEE WAIVERS, IMPACT FEE WAIVERS, PARKLAND DEDICATION WAIVERS, SEEK THOSE. A LOT OF WHAT WE HEAR FROM FOLKS IS THEY SEEK TO BE EXEMPT FROM THE CITY'S TREE PRESERVATION STANDARDS. THEY WANT TO NEGOTIATE OR DISCUSS THE DELIVERY OF INFRASTRUCTURE, WHETHER THAT'S THE DEFERRAL OF INFRASTRUCTURE OR DELIVERING THE INFRASTRUCTURE AT A SUBSTANDARD LEVEL TO WHAT OUR ENGINEERING REQUIREMENTS WOULD BE, OR ASKING THE CITY TO CONSTRUCT THAT INFRASTRUCTURE ON THEIR BEHALF. EASEMENT, ACQUISITION ASSISTANCE, UTILITY CONNECTIONS, LAND USE ALLOWANCES, AND THEN, OF COURSE, SPECIAL DISTRICTS, WHICH WE'LL TALK A LITTLE BIT MORE ABOUT THAT. BUT WHEN WE TALK ABOUT NONSTANDARD ANNEXATION, I JUST WANT TO REALLY, REALLY UNDERLINE THAT THESE ARE BASICALLY BLANK SLATE DISCUSSIONS. AND AS MANY OF YOU

[00:40:01]

ABSOLUTELY CORRECT. AND THAT WAS KIND OF THE HIGHLIGHT, I THINK, ON THIS PREVIOUS SLIDE HERE, WE WERE TALKING ABOUT THOSE LAND USE ALLOWANCES, THE VARIANCES, THINGS OF THE LIKE.

THAT BEING SAID IN SENATE BILL SIX WAS DEFINITELY A BIG NEGATIVE IN OUR EYES. I WOULD TELL YOU FROM MY SEAT THIS IS JUST JENNIFER'S OPINION. SENATE BILL 2038 IS WHAT CHANGED THE GAME ENTIRELY. IT IS PROBABLY THE MOST IMPACTFUL OF THE STATE LAW CHANGES IN DEVELOPMENT WORLD ANYWAYS THAT WE HAVE SEEN. SO ON THE MAP HERE YOU CAN SEE A BUNCH OF GREEN HIGHLIGHTED PROPERTIES. IN TOTAL SINCE 2023. SO A MERE, YOU KNOW, ALMOST THREE YEARS AGO NOW, WE HAVE SEEN 57 TRACKS RELEASED FROM OUR ETJ. AND THAT IS EQUIVALENT TO ABOUT SIX SQUARE MILES OF WHAT WE WOULD HAVE ULTIMATELY THOUGHT TO HAVE BEEN ANNEXED INTO THE CITY AT ONE POINT IN THE FUTURE. AND JUST FOR THOSE WHO MAY NOT BE SUPER FAMILIAR WITH SENATE BILL 2038, IT GIVES A PROPERTY OWNER THE UNILATERAL RIGHT TO RELEASE FROM THE CITY, THE CITY'S ETJ BY OPERATION OF LAW, WHICH MEANS THERE IS NO CONTEST THAT THE CITY CAN LEGALLY REQUIRE IF THEY MEET THE STIPULATIONS IN STATE LAW. ESSENTIALLY, WE HAVE TO WAIT 45 DAYS AND THE LAW WILL RECOGNIZE THEM AS BEING RELEASED. AND I TALKED A LITTLE BIT ABOUT THE ETJ AND THE IMPACTS THAT THIS HAS ON OUR ABILITY TO DO MASTER PLANNING. THIS IS THIS IS PROBABLY THE MOST IMPACTFUL THING THAT WE'VE SEEN IN THE LAST TEN YEARS. HOWEVER, THE ETJ IS NOT THE ONLY THING THAT WE LOOK AT. IT'S, YOU KNOW, IT'S IT THE ETJ BY DEFINITION AND LAW GIVES US THE ABILITY TO HAVE PLANNING AUTHORITY ON A PIECE OF PROPERTY IN ORDER TO OVERSEE HOW IT IS SUBDIVIDED, AND IN ORDER TO ENSURE THAT WE GET PROPER DEDICATIONS FOR RIGHT OF WAY AND WATER AND SEWER EASEMENTS, BECAUSE OUR MASTER PLANS LOOK AT THOSE AREAS AS WELL. IN ADDITION TO THE ETJ, THOUGH, AND THAT ABILITY, THAT PLANNING AUTHORITY, OUR ETJ IS ALSO WHAT WE CALL OUR CERTIFICATE OF CONVENIENCE AND NECESSITY. AND I HAD TO LOOK AT THE BOARD SO I DON'T MESS UP THE NAMING OR OUR CCN. AND THIS ONE'S REALLY BIG DEAL. AND YOU ALL KNOW THIS.

WE'VE BEEN TALKING ABOUT IT FOR QUITE SOME TIME NOW, BUT FOR, FOR THE GENERAL PUBLIC, FOR ANYBODY WATCHING BEHIND ME OR AT HOME, A CCN IS ESSENTIALLY A PERMIT FROM THE STATE THAT OBLIGATES THE CCN HOLDER TO DELIVER WATER AND UTILITY SERVICE TO A PIECE OF PROPERTY WITHIN IT. AND THE KEY WORD THERE IS WE ARE OBLIGATED TO ALLOW THEM. SERVICE DOES NOT MEAN THAT WE HAVE TO BUILD THE LINE FOR THEM. A PROPERTY OWNER MAY STILL BE REQUIRED TO EXTEND A UTILITY LINE, BUT ONCE THAT LINE IS EXTENDED, WE HAVE THE OBLIGATION TO ALLOW THEM TO TAP INTO OUR SORRY, WE HAVE THE ABILITY TO ALLOW THEM TO TAP INTO OUR SYSTEM. OKAY. AND WHEN YOU LOOK AT THIS MAP, IT'S A LOT OF DIFFERENT COLORS. I WANT TO HIGHLIGHT A COUPLE OF KEY AREAS HERE. SO OBVIOUSLY ALL OF THAT PURPLE IS THE CITY OF MCKINNEY CCN. YOU CAN SEE THE

[00:45:01]

WE PASSED OR THE COUNCIL PASSED AND HAS EXTENDED WHAT WE CALL THE CESSATION ORDINANCE. AND WHAT THAT REALLY DID WAS IT SAID, HEY, IF YOU ARE IN THE ETJ WHILE WE ARE GOING THROUGH THIS DECERTIFICATION PROCESS, WE WILL NOT BE SERVING PROPERTIES IN THE ETJ. WE FEEL LIKE THIS PROCESS COULD TAKE A WHILE, BUT WE WANTED TO PROTECT THE CITY FROM. IS A IS A BUM RUSH OF PEOPLE TRYING TO GET TAPPED INTO SERVICE WHILE THIS PROCESS PLAYED OUT. BECAUSE AS YOU CAN SEE ON THE SCREEN, YOU KNOW, WE'RE TWO YEARS INTO IT AT THIS POINT. AND SO WE WANTED TO PROTECT THAT TO THE EXTENT THAT WE COULD. WELL, THE QUESTION YOU MIGHT BE ASKING IS, WHAT IS THE PROPERTY OWNER IN THE ETJ OR THE COUNTY RIGHT. DO TO TO DELIVER WATER OR SEWER IN THESE INSTANCES? AND I'VE HIGHLIGHTED HERE SORT OF THE THREE MAIN THINGS THAT THEY COULD DO. THEY CAN STILL COME TO THE CITY. THE CITY IS STILL OPEN FOR BUSINESS TO SERVE THESE PROPERTIES. OUR DECERTIFICATION CASE WAS ASKING TO REMOVE OUR OBLIGATION TO SERVE. IF WE HAVE A PROJECT THAT WANTS TO COME IN AND DISCUSS WHAT THE REQUIREMENTS ARE FOR CITY SERVICE, WE WOULD ABSOLUTELY STILL SERVE THEM. THEY ALSO HAVE THE OPTION, OF COURSE, OF DRILLING A WELL, WHICH WE'VE GOT A HANDFUL OF PROPERTIES IN OUR ETJ AND THE COUNTY AT LARGE THAT GET WATER THROUGH THAT FORM. AND THEN THERE ARE OTHER OUTSIDE PROVIDERS. SO RECALL THAT CCN MAP THAT I SHOWED, WHETHER IT'S MILLIGAN OR NORTH COLLINS, SUD

[00:50:06]

WE JUST DON'T WANT THE OBLIGATION TO. THEY CAN ALSO DO A SEPTIC TANK ON THE PROPERTY, WHICH IS WHAT MOST RURAL DEVELOPMENTS DO OR WHAT'S CALLED A PACKAGE PLANT, AND I AM NOT AN ENGINEER, SO PLEASE DON'T LAUGH IF I BUTCHER IT COMPLETELY BACK THEIR ENGINEERS.

BUT ESSENTIALLY WHAT A PACKAGE PLANT DOES IS IT'S ON SITE TREATMENT OF YOUR SEWER AS OPPOSED TO A SEPTIC TANK, WHICH IS JUST GETTING STORED ON SITE AND THEN SORT OF NOT SORT OF, BUT AND THEN CLEANED OUT BY AN OUTSIDE SERVICE PROVIDER. EVERY SO OFTEN, A PACKAGE PLANT BASICALLY CREATES THAT, THAT FILTER AND SEWER SERVICE ON, ON THE SITE SOMEWHERE. AND THEN OF COURSE, YOU CAN STILL GET SEWER SERVICE FROM AN OUTSIDE PROVIDER. OKAY, BEFORE I MOVE INTO THE NEXT KIND OF SEGUE OF THIS, I WANT TO MAYBE ASK YOU TO RECALL THE DIFFERENT AREAS THAT HAVE BEEN REMOVED FROM THE ETJ SINCE 2023. AND WE'VE GOT ABOUT SIX SQUARE MILES. THINK WHAT WE'VE SEEN IN LIGHT OF HOUSE OR SENATE BILL 2038 IS OF THE PROPERTIES THAT HAVE RELEASED FROM OUR ETJ. I THINK THERE'S SEVEN OF THEM THAT I COUNT THAT WE ARE AWARE OF AT THIS POINT IN TIME THAT NOT ONLY RELEASED FROM THE ETJ, BUT THEY'VE ALSO PETITIONED TO THE STATE TO CREATE A MUNICIPAL UTILITY DISTRICT. AND THIS IS ONE OF THOSE SPECIAL DISTRICTS THAT I WAS MENTIONING BEFORE. WHAT THESE SPECIAL DISTRICTS DO IS, ONE, IT GIVES THEM POWERS TO DELIVER UTILITY INFRASTRUCTURE AND FUND UTILITY INFRASTRUCTURE AND EVEN TRANSPORTATION INFRASTRUCTURE. BUT IT ALLOWS A BOARD OF DIRECTORS FOR THE PROPERTY TO PLACE A TAX, OR IN THIS CASE, AN ASSESSMENT ON THE PROPERTY TO ACTUALLY PAY FOR FOR THAT DELIVERY. SO EVERYBODY IS VERY FAMILIAR WITH TRINITY FALLS UP UNTIL, YOU KNOW, A COUPLE OF YEARS AGO, THAT WAS THE ONLY MUD THAT WE HAD WITHIN OUR ETJ. BUT WHAT WE'RE SEEING IS WITH A PROPERTY OWNERS NOW, RIGHT TO RELEASE FROM THE AUTHORITY OF THE CITY AND OUR ETJ, THEY NOW HAVE SORT OF THIS NEW AVENUE TO ESTABLISH A MUD WITHOUT THE CITY'S CONSENT IN ORDER TO FINANCE AND FUND ALL OF THE DEVELOPMENT THAT THEY THEY HOPE TO ACHIEVE. BUT A MUD IS NOT THE ONLY FINANCING TOOL THAT CAN HELP A PRIVATE PROPERTY OWNER OR DEVELOPER DELIVER A PROJECT. THERE ARE ALSO MUNICIPAL MANAGEMENT DISTRICTS. KIDS ENTERS. I THINK WITH THE EXCEPTION OF THE TOURS, THE MOST IMPORTANT THING TO HIGHLIGHT HERE IS IN THE THREE MMD, MUD AND PEDS. THEY ARE A SPECIAL ASSESSMENT PASSED ON TO A HOMEOWNER, A HOME BUYER THAT IS THEN USED BY THE DEVELOPER TO BUILD THE NECESSARY INFRASTRUCTURE. SO IT IS REALLY A SHIFT OF COST BURDEN FROM THE DEVELOPER AND THE TRADITIONAL FINANCING MECHANISMS THAT WE'VE KNOWN OF THE PAST TO THESE NEW TOOLS WHERE INSTEAD OF THE DEVELOPER FUNDING IT THROUGH WHATEVER OUTSIDE SOURCES THEY HAVE, THEY CREATE THESE SPECIAL DISTRICTS AND THEY'RE LEVERAGING THE NEW NEWLY GENERATED VALUES ON THE PROPERTY IN ORDER TO FINANCE THOSE THINGS IN A DIFFERENT WAY. AND THE HOMEOWNER, AT THE END OF THE DAY IS THE ONE THAT PAYS FOR THOSE. AND THAT'S IMPORTANT BECAUSE IT GOES BACK TO ONE OF THOSE POLICY POSITIONS THAT I THINK THE CITY HAS HAD IN THE LAST, YOU KNOW, FOREVER, REALLY. BUT REALLY, MOST MOST IMPORTANTLY IN THE LAST TEN YEARS. AND THAT IS TRYING TO NOT ONLY PROTECT EXISTING RESIDENTS, BUT FUTURE RESIDENTS AS WELL FROM COST BURDENS AND OVERRUNS. AND SO WHEN WE HAVE A SPECIAL DISTRICT THAT IS IN THE CITY LIMITS, LIKE A MMD OR A PYD, THE POSITION THAT THAT WE HAVE TAKEN THUS FAR IS WE WANT TO ENSURE THAT IF A RESIDENT IS PAYING A TAX OR AN ASSESSMENT ABOVE AND BEYOND WHAT OUR THEIR NORMAL CITY TAXES WOULD, WOULD PAY FOR THAT, THEY'RE GETTING SOMETHING ABOVE AND BEYOND BACK WHERE THE COMMUNITY IS GETTING SOMETHING ABOVE AND BEYOND BACK, WHETHER THAT IS ENHANCED PARKS AND OPEN SPACES, AFFORDABLE HOUSING, HIGHER QUALITY

[00:55:07]

SPECIAL DISTRICTS ARE SORT OF THE THE SOUP DU JOUR RIGHT NOW. I THINK THAT THERE ARE A FEW DEVELOPMENTS THAT WE HEAR ABOUT, AT LEAST IN OUR SISTER CITIES, THAT DO NOT HAVE ONE OR MORE OF THESE, BUT THEY COME AT A COST, WHETHER THAT COST IS TO THE RESIDENT OR TO THE CITY. AND SO IT'S IT'S A STICKY WICKET FOR SURE, AS FAR AS I'M CONCERNED, LAYERED IN WITH ALL OF THE OTHER THINGS THAT WE JUST TALKED ABOUT. SO I'M ALMOST DONE AND I APOLOGIZE FOR THE LENGTH OF THIS. I KNOW IT'S A LOT. I JUST WANT TO REMIND A LITTLE BIT OF KIND OF THAT SHIFT IN DYNAMIC THAT WE'VE SEEN IN THE LAST YEAR, THANKS TO THE CHANGES AT THE STATE LEVEL, STRONGER BARGAINING POWER ON THE DEVELOPER SIDE, LESS BARGAINING POWER ON OUR SIDE, AND LESS ABILITY TO REALLY PLAN IN THE WAYS THAT WE MIGHT HAVE OTHERWISE DONE OR BEEN ABLE TO IN THE PAST. SO WHAT DOES THAT MEAN LOOKING FORWARD? WE'VE GOT A COUPLE OF THINGS THAT WE ARE WORKING ON. I TALKED A LITTLE BIT ABOUT, YOU KNOW, CONTINUING TO RELOOK AT THOSE SPECIAL DISTRICTS AND MAKING SURE THAT WE'RE STILL COMFORTABLE WITH WHERE WE'RE AT ON THAT, ANY SHIFTS THAT WE MIGHT NEED TO MAKE. BUT THEN ALSO THIS COST BENEFIT ANALYSIS TOOL FOR ANNEXATION, WE'VE HEARD LOUD AND CLEAR FROM THE COMMUNITY, FROM THE COUNCIL, FROM EVEN US ON THE DEVELOPMENT SIDE OF THE WORLD, THAT ANNEXATION IS IMPORTANT. WE NEED TO BE EMBRACING ANNEXATION. THE QUESTION NOW IS, AT WHAT COST? AT SOME POINT, OUR DECISION AS A COMMUNITY FOR WHETHER OR NOT TO ANNEX A PIECE OF PROPERTY IS THE SAME KIND OF MATH EQUATION THAT A PRIVATE DEVELOPER IS GOING TO DO. WE HAVE A BALANCE SHEET. WE HAVE SERVICES THAT WE HAVE TO DELIVER. WE HAVE A BOTTOM LINE THAT WE WANT TO MAKE SURE THAT WE'RE MAINTAINING OR THAT WE'RE KEEPING AN EYE ON, AND WE DON'T NECESSARILY HAVE A GREAT TOOL FOR THAT RIGHT NOW. RIGHT NOW, WE'RE WE'RE LOOKING AT EACH PROJECT AD HOC, AND IT SEEMS LIKE EVERY EVALUATION IS A LITTLE BIT DIFFERENT. AND SO WHAT WE WANT TO BE ABLE TO DO WITH THIS NEW TOOL IS TO HAVE SOMETHING THAT WE CAN LOOK AT CONSISTENTLY, AND WE ARE GOING TO BE WORKING WITH AN OUTSIDE FIRM OVER THE NEXT 2 TO 3 MONTHS TO DEVELOP THAT TOOL. WE ARE GOING TO BRING A PROTOTYPE OF THAT TOOL BACK TO THE COUNCIL, SO THAT YOU HAVE A CLEAR UNDERSTANDING OF WHAT'S GOING INTO IT, SO THAT WE CAN START USING THAT MORE REGULARLY ON SOME OF THESE REQUESTS THAT WE HAVE IN FRONT OF US. AND I CANNOT REMIND AGAIN THAT SENATE BILL TWO. YES, I THINK SENATE BILL TWO, WHICH IS THE TAX BILL, REALLY, REALLY COMES INTO PLAY BECAUSE OUR ABILITY TO CAPTURE THOSE REVENUES IS DEFINITELY CONSTRICTED. AND IF ANNEXATION

[01:00:05]

MR. MAYOR, I'M GOING TO BRING IT DOWN TO EARTH A LITTLE BIT FOR THE RESIDENTS HERE.

JENNIFER, YOU'RE A VERY SMART LADY, AND I'M LESS SO, BUT SO I'M GOING TO KIND OF MAKE IT A LITTLE BIT SIMPLE. AND YOU CORRECT ME WHERE I'M WRONG HERE. THE RESIDENTS OF MCKINNEY PAY 41.2 $0.02 PER 100 FOR PROPERTY TAX. AMONG THE THINGS THAT THAT PROPERTY TAX FUNDS ARE CHIEF DOWN HIS MEN THAT PROVIDE FIRE ROADS LIKE WHAT WE'RE SEEING ON THE VIRGINIA EL DORADO PROJECT, OUR PARKS AND OUR LIBRARIES. NOW, THERE'S A LOT OF PEOPLE WHO LIVE IN NON MCKINNEY AREAS THAT THEIR ADDRESS SAYS. MCKINNEY, TEXAS 75071. AND THEY DON'T PAY THAT PROPERTY TAX, BUT THEY USE OUR PARKS, THEY USE OUR ROADS, THEY USE OUR LIBRARIES. DOES THAT PUT UPWARD OR DOWNWARD PRESSURE ON OUR PROPERTY TAX. IT'S UPWARD BECAUSE THEY ARE PERMANENT GUESTS OF OURS THAT WE DIDN'T INVITE. THAT'S WHAT THEY ARE. AND THE STATE HAS ALLOWED IT.

NOW WHY DID THE STATE ALLOW IT? THE STATE HATE US. NO, THE STATE DOESN'T HATE US. BUT THE STATE SENT A LOT OF ECONOMIC DEVELOPMENT LATELY, MOVED A LOT OF BIG COMPANIES IN HERE. WE DON'T HAVE ENOUGH HOUSING. WE AS CITIES CAN BE A LITTLE BIT GUILTY OF MAYBE OVERENGINEERING OR ENGINEERING HOUSING TO A LEVEL THAT WE WANT, THAT THEY AREN'T SUBJECT TO. IF THEY BUILD AN ETJ SO THEY CAN BUILD CHEAPER OUT THERE, WE WE'VE THIS IS AN ATTACK ON OUR CITY.

I'M NOT SAYING IT'S AN AGGRESSIVE, ANGRY ATTACK, BUT IT'S AN ATTACK ON OUR TAX RATE.

IT PUTS UPWARD PRESSURE ON OUR TAX RATE. NOW, WE HAD AN ITEM THAT CAME A FEW WEEKS AGO.

MAYBE IT WAS A MONTH AGO. BAXTER. WELL, I THINK YOU'RE GOING TO REMEMBER THIS WHEN I SAY THAT. BUT IT WAS A IT WAS AN AREA IN THE NORTH. AND THEY WANTED TO ANNEX AND THEY WANTED TO PUT IN A MULTIFAMILY. AND THAT MULTIFAMILY WAS A WORKFORCE HOUSING PROJECT THAT DOES NOT PAY OUR CITY TAXES. IT DOES PAY SOME MONEY INTO OUR MCKINNEY HOUSING AUTHORITY. BUT WHAT IT ALSO DID IS WHEN, WHEN APARTMENTS GET BUILT, CORRECT ME WHERE I'M WRONG. FOR EVERY 36 UNITS THEY PUT IN, THEY HAVE TO DEDICATE ONE ACRE OF PARKLAND. IF THEY BUILD IT IN THE ETJ, THEY DEDICATE ZERO ACRES OF PARKLAND AS A WORKFORCE HOUSING PROJECT. THEY HAD TO DEDICATE. THEY ONLY HAD TO DEDICATE 50% OF WHAT WAS NEEDED. THEY BUILT SOMETHING LIKE 360 UNITS. THEY HAD TO DEDICATE THEN FIVE ACRES OF PARKLAND. IS THAT AS BIG OF A WIN FOR US AS IT IS IF IT'S BUILT IN THE CITY? NO. IF IT'S BUILT IN THE CITY AND IT'S NOT A WORKFORCE HOUSING PROJECT, THEY'RE GOING TO EXCUSE ME. IF IT'S NOT A WORKFORCE HOUSING PROJECT, THEY'RE GOING TO PAY FULL TAX RATE. THEY'RE GOING TO PAY THE FULL TEN ACRES OF PARKLAND. THEY'RE GOING TO PAY A LOT OF OTHER STUFF TO. BUT IT WAS A WIN COMPARED TO WHAT WE WOULD HAVE GOTTEN HAD BEEN THE ETJ. NOW, THERE WERE PEOPLE IN THE ETJ THAT WERE OUT HERE FOR THAT MEETING TELLING US THAT WE WERE STUPID TO DO THIS. NO WE WEREN'T. THIS WAS THE BEST DEAL WE COULD GET. AND SOME OF THEM THIS WAS THIS WILL ALWAYS STAY WITH ME. IT WAS SEARED IN ME.

THEY DON'T PAY OUR TAX RATE, BUT THEY WERE COMPLAINING ABOUT OUR PARKS. I'M GOING TO YOUR PARK. AND IT'S NOT AS GOOD AS IT USED TO BE. REALLY, REALLY. SO MANY OF THEM DON'T REALIZE THEY'RE PART OF THE PROBLEM. THEY ARE PART OF THE PROBLEM AS FAR AS WE'RE CONCERNED. BUT WE ARE HERE TO REPRESENT AS THE MCKINNEY TAXPAYER. OUR JOB IS TO PUT DOWNWARD PRESSURE ON YOUR TAX RATE WHEREVER WE CAN. THIS HAS BEEN A PAIN SINCE I'VE BEEN ON COUNCIL. IT WILL BE A PAIN AS LONG AS THE VOTERS ALLOW ME TO STAY ON COUNCIL. BUT I WILL FIGHT AND FIGHT AND FIGHT TO GET THE BEST DEAL I CAN FOR THE CITY. I DON'T KNOW WHETHER IT'S GOING TO LOOK LIKE ON EVERY ONE OF THESE DEVELOPMENTS. THANK YOU MA'AM, THANK YOU. AND WITH THAT, THE ONLY THING I'M GOING TO ADD IS AS THE MANAGER AND WORKING WITH STAFF IS THERE ARE THERE ARE SEVEN MEMBERS ON THE CITY COUNCIL. EACH ONE OF YOU MIGHT HAVE A DIFFERENT VIEW OR

[01:05:05]

EACH OF THESE WILL PROBABLY BE BROKEN UP IN A LITTLE BIT. SO FOR EXAMPLE, SHE TALKED ABOUT COST OF SERVICE STUDY. AGAIN, SEVEN OF YOU WILL PROBABLY HAVE SEVEN DIFFERENT VIEWS OF WHAT YOU THINK COST OF SERVICE SHOULD INCLUDE. WE WILL BRING THAT BACK TO YOU TO MAKE SURE THAT THE COUNCIL IS IN ALIGNMENT WITH STAFF ON. ARE WE MEASURING THE RIGHT THINGS? ARE WE CALCULATING THE COST OF SERVICE THE RIGHT WAY? YOU'LL HEAR FROM DEVELOPERS WHISPERING IN YOUR EAR THAT WE'RE BEING UNFAIR ON THIS, AND YOU MAY HEAR FROM OTHERS FROM THE OTHER SIDE. OUR JOB IS TO COME UP WITH SOMETHING THAT THE COUNCIL CAN ALIGN BEHIND AND SAY, THIS IS OUR COST OF SERVICE STUDY. NOW LET'S MOVE ON TO THE NEXT TOPIC. SO THAT IS WHAT'S COMING UP. JENNIFER AND HER TEAM ARE DOING A FABULOUS JOB ON A VERY COMPLICATED ISSUE. AND SO THERE'S MUCH MORE TO FOLLOW ON THIS. ANYONE ELSE? PAUL. YOU'RE RIGHT. JENNIFER, THANK YOU FOR THE PRESENTATION. IT'S OBVIOUS YOU PUT SOME TIME AND EFFORT INTO PUTTING THIS TOGETHER. SO WE DO APPRECIATE THAT. IT IS HEAVY STUFF. IT'S A LOT OF INFORMATION. MOST PEOPLE STRUGGLE DIGESTING EVERYTHING YOU PRESENTED AND WE APPRECIATE YOU PROVIDING THE INFORMATION.

YOU AND YOUR TEAM, MR. QUINT AND THE OTHERS, WE DO APPRECIATE IT VERY MUCH. IS ANYBODY AWAKE? BEHIND ME? MR. SLEEPING OVER THERE, I SEE. YEAH, I APPRECIATE IT, AND I KNOW IT'S A LOT, BUT I APPRECIATE THE TIME. AND IF THERE'S ANY FOLLOW UP DISCUSSIONS OR QUESTIONS, PLEASE LET ME OR MR. GRIMES KNOW, AND WE'RE HAPPY TO BRING IT BACK. JUST A QUICK QUESTION, JENNIFER. I'M ASSUMING SOME OF THESE TOOLS THAT YOU TALKED ABOUT ARE KIND OF AI GENERATED WHERE YOU CAN KIND OF HIT BUTTONS AND SAY, IF IT'S A MUD OR IF IT'S AN M, A D OR A T A TERS OR WHATEVER, IT ADJUSTS SOME OF THOSE NUMBERS THAT WE'RE LOOKING AT WHEN WE'RE TALKING ABOUT THE BOTTOM LINE. IS THAT ACCURATE? OKAY, YEAH.

AND THE COST BENEFIT ANALYSIS WILL BE ABLE TO TOGGLE THOSE KIND OF ON AND OFF. YES, THAT'D

[26-0495 Consider/Discuss Property Tax Options for Residents Including Those Over Age 65 and the Disabled]

WE'RE JUST HOLDING IT AS A AS IT IS TODAY. BUT BEFORE WE KIND OF GET STARTED ON THAT, I WANT TO TALK TO YOU ABOUT OUR PRELIMINARY TAXABLE VALUATIONS THAT WE'VE GOTTEN FROM THE COLLIN COUNTY APPRAISAL DISTRICT. SO START WITH A LITTLE BIT OF, I DON'T KNOW IF IT'S BAD NEWS, BUT IT'S, IT'S DIFFERENT NEWS FOR FOR THE CITY OF MCKINNEY. THIS IS THE FIRST TIME IN MY TIME HERE THAT OUR EXISTING PROPERTY VALUES HAVE DECREASED. NOW, THIS IS NOT THE OFFICIAL TAX ROLL. WE'LL GET THAT IN JULY. BUT RIGHT NOW THE THE PRELIMINARY VALUES SHOW THAT OUR EXISTING PROPERTY VALUES ARE DOWN ABOUT 2.81%. NOW WHAT'S DRIVING THAT? A LITTLE BIT OF OF EVERYTHING YOU CAN SEE THERE ON THE THIRD BULLET POINT THAT OUR OUR HOMESTEAD MARKET VALUE HAS GONE FROM $576,000 IN 2025 TO 563,000 IS WHAT THEY'RE PRELIMINARILY TELLING US IT WILL BE THIS YEAR. THAT'S ABOUT A 2.26 DROP. OVERALL, IT'S 2.81.

SO THAT TELLS ME THAT THAT COMMERCIAL VALUES ARE PROBABLY GOING TO BE DOWN JUST A LITTLE BIT MORE THAN THAT TO, TO GET TO THAT TWO, EIGHT, ONE NUMBER ON ALL OF OUR EXISTING PROPERTIES. SO THAT'S, THAT'S A LITTLE BIT CONCERNING. NOW WE HAVE SOME GOOD NEWS. THE NEW CONSTRUCTION, IT'S A PRELIMINARY EDITION OF 3.37% OF NEW PROPERTY. THAT'S $1.5

[01:10:02]

WE'RE STILL SEEING STRONG COLLECTIONS. BUT WHAT WHAT IF YOU HOLD THE TAX RATE WHERE IT IS TODAY ON AN EXISTING PROPERTY? IF IT GOES DOWN IN VALUE, YOU WOULD ACTUALLY COLLECT LESS IN TAXES ON THAT. IF YOU HOLD THE TAX RATE WHERE IT IS TODAY, I JUST KNOW SOMETIMES WHAT YOU KNOW WHEN YOU SEE IT, YOU'RE LIKE, YOU KNOW, I HAVE A VALUE OF MY HOME, BUT BUT WHEN I'M GETTING TAXED ON IS LESS BECAUSE YOU CAN ONLY GO UP 10% A YEAR, RIGHT? SO WE COME DOWN. I'M STILL NOT GETTING, I CAN'T BREAK, I CAN'T SPEAK TO, TO INDIVIDUAL PROPERTIES. WHAT WE'RE SEEING IS THE ENTIRE ROLL IS DOWN THE 2.81%. GOTCHA. SO WE'RE ASSUMING THAT WITH THE HOME VALUES THAT THAT HOME VALUES ARE COMING DOWN, HOWEVER YOU COULD BE IN THAT 10% RANGE. BUT WE HAD A, WE HAD SUCH A BUILD UP AFTER AND I'M KIND OF JUST, YEAH, WE HAD SUCH A BUILD UP IN HOME VALUES AFTER COVID AND EVERYTHING KIND OF PUSHED THE MARKET REALLY HIGH. SO WE WERE CATCHING UP EACH YEAR, 10%, 10%, 10%. I THINK WHAT YOU'RE SEEING SOME OF THIS HERE WITH THE HOUSING VALUES IS WE KIND OF HIT A, WE KIND OF HIT A PEAK AND WE CAUGHT UP WITH SOME OF THAT AND SOME OF WITH THE ECONOMY NOT BEING MAYBE AS STRONG AS IT COULD BE, I THINK YOU'RE STARTING TO SEE SOME SOME HOUSING VALUES DECREASE THERE, BUT IT EACH INDIVIDUAL HOMEOWNER MIGHT STILL BE PUSHING THAT 10%, 10%, 10%. AND MARK, CORRECT ME IF I'M WRONG REGARDING MR. JONES HERE, BUT THERE'S A COUPLE VALUATIONS. A HOMEOWNER MIGHT BE CONCERNED ABOUT HIS APPRAISED VALUE AND THEN HIS ASSESSED VALUE AND THE DELTA ON THE ASSESSED VALUE FREQUENTLY FOR AN UNDER 65 YEAR OLD HOMEOWNER IS EATING INTO THAT 10% INCREMENT. SO IF YOU HAD A HOUSE THAT WAS VALUED AT 2.50, AND ALL OF A SUDDEN THE APPRAISAL GOES UP TO 400, IF IT WAS AT 250, YOU CAN ONLY GO UP BY 25000 ON YOUR ASSESSED VALUE.

CORRECT. SO THE QUESTION IS, HAVE MOST HOMEOWNERS EATEN THROUGH THAT DIFFERENCE BETWEEN APPRAISED AND ASSESSED. AND I THINK PROBABLY A LOT OF THEM HAVE. I THINK WE'RE STARTING TO SEE THAT AT THAT POINT. AND THAT'S WHAT THAT'S WHY WE THINK SOME OF WE'RE SEEING SOME OF THIS. I'M NOT SAYING THAT ALL OF IT. I'LL BE REALLY INTERESTED TO SEE IT WHEN WE GET THE FULL TAX ROLL. LIKE I SAID, THIS IS ALL IN AGGREGATE. AND I'M I'M NOT READY TO FULLY REACT TO TO THAT YET. WE'VE HAD SOME MAJOR CHANGES IN THE TAX ROLL BETWEEN THIS TIME AND WHEN WE GET IT IN JULY. SO I'VE SEEN IT WHERE WE WE WEREN'T GOING TO HAVE A WHOLE LOT OF VALUE INCREASE. AND WE ENDED UP GETTING 5%. SO I'M NOT PUTTING THIS UP HERE. LIKE I SAID, I DON'T WANT TO REACT TO IT AND SCARE ANYONE OR, OR, BUT I THAT'S WHAT WE'VE, WE'VE SEEN AND THEY'VE BEEN VERY CONSISTENT WITH THE VALUES ACROSS COLLIN COUNTY. WHAT WE SAW WITH ALL OF OUR THE OTHER CITIES IS A FAIRLY. SOME WERE FOUR, SOME WERE ONE. BUT DECREASE IN. IN OVERALL VALUES. SO THAT'S WHAT WE'RE SEEING. I CAN'T SPEAK TO EXACTLY WHAT WE'RE GOING TO SEE ON JULY 25TH, THOUGH, SO THANK YOU. SO I DO WANT TO TALK A LITTLE BIT ABOUT THE TYPES OF EXEMPTIONS THAT THE THE CITY IS ABLE TO OFFER. THE FIRST IS WHAT WE CURRENTLY OFFER. IT'S AN OVER 65 AND DISABLED EXEMPTION. JUST TALK A LITTLE BIT ABOUT THAT. I'LL TALK A LITTLE BIT OF HOW IT WORKS WHEN WE GET TO IT. BUT IT'S A TARGETED IT'S TARGETED EXACTLY TO, TO ONE SPECIFIC GROUP. IT'S CHANGEABLE, WHICH WE'VE DONE SEVERAL TIMES STARTING IN 2017. IT HADN'T BEEN INCREASED SINCE 2005, BUT IN 2017, I THINK WE'VE INCREASED IT SIX TIMES OR FIVE TIMES SINCE THEN. WE'VE GONE FROM 50,000, WHICH IS WHAT IT WAS IN 2016 TO 90,000, WHICH IS TODAY. WE LAST CHANGED THAT IN 2024, AND IT'S EVALUATED YEARLY.

HOMESTEAD EXEMPTION IS FOR ALL HOMEOWNERS. IT'S BASED ON A PERCENTAGE BASIS OF WHAT YOUR HOME IS WORTH. THAT'S CHANGEABLE. YOU CAN SET ANYTHING FROM ABOUT 5% TO TO 20%, WHICH IS THE MAX. AND THAT WOULD REDUCE THE THE TAX BURDEN ON ALL HOMEOWNERS ON HOMESTEAD,

[01:15:06]

AND THE NEXT TYPE THAT WE HAVE IS THE HOMESTEAD EXEMPTION. WE DO NOT CURRENTLY HAVE THAT.

ONCE AGAIN, IT REDUCES THE AMOUNT OF TAXABLE VALUE JUST LIKE THE THE EXEMPTION, BUT IT WORKS A LITTLE DIFFERENTLY. IT'S BASED ON A PERCENTAGE OF WHAT YOUR HOME'S TAXABLE VALUE IS. IF WE HAD IMPLEMENTED, FOR INSTANCE, A, A HOMESTEAD EXEMPTION IN FISCAL YEAR 26 ON A ON AN AVERAGE HOME OF $552,000, IF YOU'VE DONE 5%, IT PROBABLY WOULD HAVE BUMPED THE TAX RATE UP ABOUT 8/10 OF A PENNY TO GET THE SAME LEVY THAT WE CURRENTLY HAVE, IT WOULD HAVE SAVED EACH HOMEOWNER THAT WAS ELIGIBLE ABOUT $71 EACH, AND THAT'S FOR EACH 5%. YOU CAN SEE THERE WHAT WE HAD AT FIVE, SEVEN AND TEN. THE THIRD TYPE IS THE OVER 65 TAX FREEZE OR CEILING. IT'S PERMANENT. ONCE ADOPTED, THE CALENDAR YEAR ADOPTION, YOU WOULD BECOME YOUR BASELINE YEAR FOR FOR ANYBODY THAT IS ELIGIBLE. AND THEN YOU WOULD SEE THE EFFECT IN THE TAX YEAR AFTER THAT. WE WE'VE SEEN INCREASE OF OUR OVER 65 EXEMPTIONS THAT WE CURRENTLY OFFER. IT'S INCREASED ABOUT 70% OVER THE LAST TEN YEARS. SO WHAT WE DID WAS TO, TO FUND THE HOW THIS THE FREEZE WOULD WORK. ABOUT $3 BILLION OF TAXABLE VALUE WOULD BE CURRENTLY LOST IN THIS FISCAL YEAR. THAT WOULD BE ABOUT $0.03. OVER THE THE TEN YEARS, THE TAX RATE WOULD BE ABOUT $0.03 HIGHER. TO HAVE THE SAME LEVY THAT YOU HAVE TODAY. AND THEN AN ELIGIBLE HOMEOWNER WHO OWNED THEIR HOME IN THAT 2015 WOULD PAY ABOUT $1,257 LESS IN TAXES TODAY THAN THAN THEY WOULD HAVE. SO I GUESS WHAT WE'RE LOOKING FOR TODAY IS IF THERE IS ANY APPETITE FROM THE COUNCIL TO MOVE FORWARD WITH CHANGING ANY OF THESE OR ADDING THESE OR, OR TALKING ABOUT THEM ANY FURTHER AS WE GO THROUGH JUNE. SO, MARK, I UNDERSTOOD YOU RIGHT JUST A MOMENT AGO, YOU SAID IF WE HAD FROZEN THE OVER 65, THREE YEARS AGO, OUR TAX RATE IN ORDER TO COLLECT THE SAME AMOUNT WOULD NOT BE FOUR ONE, TWO, TWO. IT WOULD BE SOMEWHERE AROUND FOUR FOUR. YES. IF YOU IF YOU MAINTAIN THE LEVY AND THEN ONCE YOU REMOVE. BECAUSE WE TALKED A LITTLE BIT ABOUT THE NUMERATOR, IF THE NUMERATOR IS THE SAME, WHICH IS, IS THE LEVY, AS YOU REMOVE VALUE, IT DOES PUT. IT DOES MOVE THE. SO ANY BUSINESS LOOKING AT MCKINNEY WOULD LOOK AT A 44 CENT TAX RATE, AS OPPOSED TO THE 41 THAT WE HAVE RIGHT NOW. YES. IF WE'RE IN A COMPETITIVE SITUATION. THANK YOU. ANYONE ELSE? OTHER QUESTIONS? MARK? NONE. NEED DIRECTION. YEAH. I KIND OF NEED DIRECTION. I NEED SOME DIRECTION. MR. HOLLOWAY NEEDS TO KNOW BY THE END OF JUNE. WE HAVE TO FILE BY THE END OF JUNE. IF WE'RE GOING TO MAKE A CHANGE TO WHAT WE'RE DOING. SO WE WOULD PROBABLY NEED TO PASS SOMETHING AT THE AT THE NEXT

[01:20:01]

I'LL MAKE A REMARK. IF WE LEAVE THE 90,000 EXEMPTION ALONE AND PEOPLE'S PROPERTY VALUE DECREASED BY ABOUT 2%, THAT 90,000 IS MORE MEANINGFUL THAN IT WAS LAST YEAR BECAUSE IT'S A HIGHER PERCENTAGE OF THEIR VALUATION. SO LEAVING IT ALONE ACTUALLY GIVES PEOPLE THE GENERAL AVERAGE PERSON A BIT OF AN INCREASE IN THEIR EXEMPTION. I HAVE NO APPETITE TO DO ANYTHING TO PUT UPWARD PRESSURE ON THE OVERALL TAX RATE. NONE. I WOULD BE WILLING TO LEAVE THE 90 ALONE AND GIVE PEOPLE A LITTLE BIT MORE OF A BREAK. BUT THE FACT IS THAT IF YOU'VE GOT TWO HOMES THAT SIT NEXT TO EACH OTHER, BOTH OF THEM ARE 563,000. BOTH OF THEM HAVE BEEN OVER 65 PERSON IN THEM. ONE OF THE PEOPLE RENTS, SO THEY HAVE NO EQUITY. ONE OF THE PEOPLE OWNS IT. SO THEY HAVE ALL THE EQUITY. THE GUY WHO IS RENTING IS PAYING 41.2 $0.02 PER 100 IN TAXES TO HIS LANDLORD. THE GUY WHO OWNS IT IS PAYING ABOUT $0.34 EFFECTIVE TAX RATE. SO THE DIFFERENCE THE QUESTION IS, IS WHAT'S FAIR. THAT DOESN'T STRIKE ME AS FAIR. BUT THAT'S WHERE WE ARE. I'M WILLING TO LEAVE IT, BUT I'M NOT WILLING TO GO ANY HIGHER. THANK YOU, MR. MAYOR. ANYONE ELSE? EVERYBODY OKAY WITH WITH MAKING A DECISION ON THE AT THE JUNE 16TH MEETING? YES. GOOD. WELL, WHAT WE'LL SO WE NEED TO KNOW WHAT WE'RE GOING TO BRING.

TYPICALLY, IF YOU IF THERE'S THERE'S DESIRE ON THIS BOARD OR THIS COUNCIL TO DIRECT US TO INCREASE SOMETHING, WE'LL BRING THAT BACK FOR ADOPTION ON THE 16TH. OTHERWISE, WE COME BACK ON THE 16TH WITH A MENU AND YOU HAVE TO FILL IN THE BLANK OR PICK ONE. BUT THAT COULD BE CONFUSING. IDEALLY, WE'D WHAT WE'D GET TODAY IS DIRECTION. WHAT IS THE CONSENSUS OF THE COUNCIL? DO YOU WANT US TO MOVE FORWARD WITH MAKING CHANGES OR NOT? IF YOU IF YOU CHOOSE TO NOT MAKE ANY CHANGES WHATSOEVER, THERE'S NO ACTION THAT NEEDS TO BE TAKEN. RIGHT. I'M LEANING TOWARD KEEPING IT THE SAME. YEAH. I'M KIND OF IN AGREEANCE WITH PATRICK AND RICK. NO CHANGE. ALL RIGHT, MARK, YOU'RE GOOD. I WILL NOT SEE YOU ON JUNE. OKAY, GOOD. THANKS, MARK.

NOT GOOD THAT YOU WON'T BE HERE, BUT GOOD THAT WE WON'T SEE YOU. WE'LL FIND A REASON FOR THEM TO

[26-0496 Consider/Discuss the Design Concept for the McKinney Downtown Parking Structure Project (Project No. FC2634)]

SO SEVERAL YEARS AGO, THE CITY COUNCIL ENGAGED IN A PROCESS WHERE IT SOUGHT QUALIFICATIONS FROM FIRMS IN ORDER TO BE ABLE TO CONSIDER REDEVELOPMENT OF PARCELS IN THE DOWNTOWN AREA.

THE CITY SELECTED A VENDOR AND THEN SPENT SEVERAL YEARS WORKING WITH THAT VENDOR TO LOOK AT SPECIFIC CONCEPTS FOR THE DOWNTOWN. THAT PROCESS DID NOT REACH FRUITION IN TERMS OF SELECTING A PROJECT. HOWEVER, THERE WERE CERTAIN DESIGN ELEMENTS AS PART OF THE PROJECT THAT THE CITY COUNCIL WANTED TO MOVE FORWARD, WITH THE PARKING STRUCTURE BEING ONE OF THEM.

ONE OF THE THINGS THAT WE HEARD FROM A PRIOR SPEAKER WAS ABOUT FEEDBACK FROM THE PUBLIC, AND WE HAVE TWO SLIDES THAT ADDRESS HOW WE WILL USE THAT INFORMATION. SHOULD THE CITY COUNCIL DECIDE THAT IT WANTS TO MOVE FORWARD WITH ONE OF THE CONCEPTS. SO WHAT YOU CAN SEE

[01:25:02]

THIS IS CONCEPT THREE AGAIN SITE. THIS PLACES THE GARAGE OVER THE. THE FORMER DEVELOPMENT SERVICES BUILDING OCCUPYING THE ENTIRE BLOCK FROM KENTUCKY TO TENNESSEE AND SOUTH OF HUNT. THIS WOULD GIVE US THE BIGGEST NUMBER OF PARKING SPACES GIVEN THE AVAILABLE SITE DIMENSIONS THAT WE HAVE THERE. SO THIS IS JUST A AN IMAGE OF A MASSING IMAGE. IT DOES NOT REPRESENT ANY ARCHITECTURAL FINISHES. THE PURPOSE OF THIS WAS TO JUST SHOW THE RELATIONSHIP OF THE PARKING STRUCTURE, MASS RELATIVE TO POTENTIALLY FUTURE COMMERCIAL BUILDINGS, BUT IT DOES NOT REFLECT. I JUST WANT TO CLARIFY THAT IT DOES NOT REFLECT ANY ARCHITECTURE. THIS IS JUST THE SKELETON OF THE STRUCTURE THAT WE'RE SHOWING THERE. THE DESIGN STANDARDS FOR THE DOWNTOWN CORE ALLOW US TO HAVE FIVE STORIES BUILDING FOR PARKING STRUCTURE THAT WOULD TRANSLATE INTO SIX LEVELS, SIX PARKING LEVELS. SO YOU'RE SEEING A SIX STORY PARKING STRUCTURE WOULD BE ABOUT THE SAME HEIGHT AS A FIVE STORY BUILDING. IS THAT FAIR? SIX LEVEL PARKING STRUCTURE WOULD BE FIVE STORIES. THANK YOU. YEAH. AND YOU CAN SEE ON THE GRAPHIC THERE THE HEIGHT TO THE TOP OF THE STAIR ELEVATOR TOWER WOULD BE ABOUT 75FT ABOVE THE, THE GROUND COMMERCIAL BUILDING FIVE STORY COULD BE 80FT TO THE TO THE ROOF. SO

[01:30:07]

IT IS THE THE BUILDING AREA FOR EACH PARKING SPACE THAT YOU CAN BUILD. WE WANT TO KEEP THAT NUMBER CLOSER TO 350FT■!S PER PR CAR. IN THIS CASE, IT'S A LITTLE BIT OVER BECAUSE WE HAVE AN EXPRESS RAMP, AN EXPRESS RAMP. THERE IS NO PARKING. YOU'RE JUST CIRCULATING TO GET ABOVE TO THE NEXT LEVEL OF PARKING. AND WE LOSE SOME EFFICIENCY WITH THAT. THE TOP RIGHT SHOWS THE ISOMETRIC DETAIL. IT JUST SHOWS THE THE THE VERTICAL CIRCULATION FOR VEHICLES. AND AGAIN, THIS IS THE MAXIMUM THAT WE CAN BUILD IN ACCORDANCE WITH WITH THE ZONING ORDINANCE AND REQUIREMENTS. THIS IS ALTERNATE ONE. I'M SORRY, ALTERNATE A FOR CONCEPT ONE, WE WE WERE TRYING TO SEE HOW MUCH HOW MANY SPACES WE COULD GET, YOU KNOW, MAXIMIZING THE HEIGHT, BUT ALSO MAXIMIZING THE NUMBER OF SPACES. SO THIS GIVES US 479 SPACES. WE WOULD HAVE TO BUILD ONE LEVEL BELOW GRADE IN ORDER TO, TO ACHIEVE THAT. IT STILL HAS AN EXPRESS RAMP AND THERE IS NO RETAIL WITH WITH THIS CONCEPT. SO MOVING ON TO CONCEPT TWO, THIS THIS IS THE SAME SITE WEST OF KENTUCKY, SOUTH OF HUNT, BUT WE'RE LOCATING THE PARKING GARAGE ON THE EAST SIDE OF THE OF THE SITE. CENTRAL PARK REMAINS AT ITS EXISTING LOCATION. IT'S NOT VISIBLE HERE BECAUSE OF THE. THE ANGLE OF THAT VIEW, BUT IT REMAINS IN ITS EXISTING LOCATION. SO SIMILARLY HERE WE WOULD HAVE VEHICULAR ACCESS FROM THE NORTH END OF THE OF THE SITE, NORTH END OF THE PARKING STRUCTURE. GIVEN THE THE TOPOGRAPHY AND THE, THE CONNECTING POINTS THAT WE'RE TRYING TO HIT FOR PEDESTRIANS AND VEHICLES, WE WOULD NEED WHAT WE CALL AN EXPRESS RAMP. AND WE DO LOSE SOME EFFICIENCY. YOU CAN SEE HERE 366FT■!S PER SPACE. AND WE GET 407 PARKING SPACES. THIS IS AN ALTERNATE A CONCEPT TWO 463 SPACES. WE HAVE TO BUILD ONE LEVEL BELOW GRADE. IT STILL REQUIRES THE EXPRESS RAMP.

VEHICULAR ACCESS FOR ALL THESE CONCEPTS IS FROM THE NORTH END FROM HUNT STREET, AND THIS HAS NO RETAIL WITH IT, NO RETAIL COMPONENT. I MENTIONED THE EFFICIENCY BECAUSE IT IS AN IMPORTANT FACTOR FOR FOR CONSTRUCTION COST. SO WE WANTED TO SEE WHAT OPTIONS WE COULD DEVELOP TO ELIMINATE THAT EXPRESS RAMP AND IMPROVE THE EFFICIENCY. SO THIS CONCEPT DOESN'T HAVE AN EXPRESS RAMP. AND IT GIVES US 420 SPACES. WE DO REQUIRE AT THE SOUTH SOUTHEAST CORNER OF THE STRUCTURE. WE WOULD NEED A PEDESTRIAN RAMP TO BE ABLE TO CONNECT TO EXISTING GRADES ALONG THE SIDEWALK THERE. ALTERNATE SEE VERY SIMILAR DIFFERENCE HERE IS THAT WE WOULD HAVE ONE LEVEL. WE WOULD BUILD ONE LEVEL BELOW GRADE NO EXPRESS RAMP. YOU CAN SEE THE EFFICIENCY STARTING TO GET CLOSER TO 350FT■!S PER SPACE. SO THAT GIVES US MORE PARKING SPACES FOR THE SAME BUILDING AREA. SO WE WE INCLUDED A FEW

[01:35:05]

GIVEN THAT WE'RE OCCUPYING THE SPACE FOR RETAIL. AND THIS GIVES YOU A KIND OF WE SPLIT THE RAMP, WE HAVE RAMPS GOING DOWN AND THEN RAMPS GOING UP WITHIN THE SAME BAY. THAT COULD BE POTENTIALLY USED FOR FOR RESERVED PARKING. IF YOU HAVE A USER THAT REQUIRES A SPECIFIC RESERVED SPACE, THAT THAT COULD OFFER THAT, THAT OPPORTUNITY FOR THAT. SO WE MOVE OVER TO THE SITE, WHICH WAS THE, WHICH IS THE FORMER DEVELOPMENT SERVICES BUILDING OCCUPYING THE ENTIRE BLOCK. AGAIN, THIS THESE IMAGES ARE ONLY SHOWING THE MASS, RIGHT? THE SKELETON, WE'RE NOT SHOWING THE THE ARCHITECTURE. WE'RE KICKING OFF THE ARCHITECTURAL DESIGN NEXT WEEK. AND WE'LL HAVE RENDERINGS THAT WE CAN BRING BACK TO COUNCIL. IF YOU WISH TO SEE THOSE. SO THIS IS THIS IS A MUCH ■LARGER FOOTPRINT. WE GET THREE BAYS OF PARKING. THIS CONCEPT GIVES US THE MOST PARKING SPACES. IT DOES NOT INCLUDE RETAIL AT GRADE.

VEHICULAR ACCESS WOULD BE FROM THE NORTH HUNT STREET. THERE COULD BE AN OPPORTUNITY TO PROVIDE AN EXIT LANE ALONG THE SOUTH ONTO HERNDON. BUT. BUT GIVEN THE THE SITE DIMENSIONS, WE DO NEED AN EXPRESS RAMP TO BE ABLE TO. TO GET UP TO THE NEXT LEVEL AND CLEAR THE, THE THE, THE REQUIRED HEIGHTS, GIVEN THE TOPOGRAPHY. ALTERNATE A. FOR CONCEPT THREE, WE PLACE RETAIL ALONG THE WEST END OF THE. OF THE STRUCTURE ALONG KENTUCKY. AND THAT GIVES YOU OVER 10,000FT■!S OF OF RETAIL SPACE, 531 SPACES AND A VERY DECENT PARKING EFFICIENCY STILL AT 360FT■!S PER SPACE. AND THEN WE MOVE RETAIL SPACE TO THE OTHER SIDE OF THE BLOCK ALONG TENNESSEE, VERY SIMILAR SIZE, 12,000FT■!S, SIMILAR IN PARKING CAPACITY AT 568 SPACES, AND STILL A PRETTY GOOD EFFICIENCY GIVEN EVERYTHING THAT THAT WE'RE TRYING TO ACCOMPLISH WITHIN THAT FOOTPRINT. AND THEN WE SAID, LET'S SHOW RETAIL ON BOTH SIDES. IT GIVES THIS GIVES YOU THE MOST SQUARE FOOTAGE FOR FOR RETAIL SPACE ALONG TENNESSEE AND KENTUCKY. STILL WITH THE WITH THE VEHICULAR ACCESS FROM HUNT ALONG THE NORTH. SO THIS, THIS SLIDE IS, IS, IS A SUMMARY OF ALL THESE CONCEPTS, RIGHT. CONCEPTS ONE, TWO AND THREE WITH THE, WITH EACH OF THE DIFFERENT ALTERNATES, YOU SEE A TABULATION ALONG THE BOTTOM THERE THAT GIVES YOU THE, THE, THE NUMBER OF SPACES AND THE, THE CONCEPTUAL BUDGET NUMBER HERE INCLUDES CONSTRUCTION COST. IT INCLUDES CONTINGENCIES, DESIGN CONTINGENCIES, CONSTRUCTION, CONTINGENCY ESCALATION, AND SOFT COSTS. SO THIS IS MORE THAN JUST CONSTRUCTION COST. IT'S THE FULL PROJECT BUDGET. THIS IS STILL CONCEPTUAL RIGHT. WE WE'RE WE'RE IN THE CONCEPTUAL PHASE AS WE MOVE THROUGH THE DIFFERENT PHASES OF, OF DESIGN, WE'LL BE UPDATING THE, THE, THE COST ESTIMATES AND THE PROJECT BUDGET. THE MOST ECONOMICAL, I WOULD SAY. CONSIDERING ALL THE FACTORS WOULD BE CONCEPT THREE AT $54,000 PER SPACE. BUT AGAIN, THIS THIS IS THE PROJECT COST, NOT NOT CONSTRUCTION COST. AND THE COST COULD RANGE BETWEEN 23 MILLION AND 37 MILLION DEPENDING ON THE OPTION THAT THAT YOU LIKE TO CONSIDER FOR SPACE. CONCEPT THREE ALSO GIVES YOU THE MOST NUMBER OF PARKING SPACES, BUT IT DOES NOT INCLUDE

[01:40:07]

AGAIN, WHAT WE'RE TRYING TO DO HERE BRING CHOICES AND OPTIONS FOR THE COUNCIL. IF THE COUNCIL WERE TO SAY, WE DON'T WANT TO BE IN THIS BUSINESS, WE HEAR YOU. THAT'S THAT'S PERFECTLY FINE. AND THAT'S A POLICY DECISION. BUT IF YOU WANTED TO HAVE THAT OPTION BECAUSE YOU HEAR FROM FOLKS, SAY, WHY DIDN'T YOU PUT RETAIL ON THE GROUND LEVEL? WE WANT TO MAKE SURE YOU HAVE THAT OPTION AND HOW YOU WOULD DO IT. ALL RIGHT. MY GUESS IS ON HERE IS WHEN WE'RE LOOKING AT THESE, THESE ARE SHOCKING NUMBERS, MAN. MY FIRST HOUSE WAS $67,500. I MEAN THIS IS SHOCKING NUMBERS. OKAY. GETTING PAST THAT THOUGH. SIR. I LOOK AT OPTION THREE AND I'M SEEING 356FT■!S PER SPACE. IS THAT WHAT I'M LOOKING AT? AND I'M HAVING TO LOOK AT THE THIRD PAGE OF THE HANDOUT THAT MR. GILLINGHAM GAVE US. OR MAYBE THE FOURTH CONCEPT THREE IS 356FT■!S. OKAY, SO IF ANYONE IN HERE CAN ANSWER WHETHER IT'S MISS JACKSON OR MR. GILLINGHAM OR CHIEF DOW OR SOMEBODY, WHEN I GO TO CHESTNUT STREET PARKING GARAGE, WE HAVE HOW MANY FEET, SQUARE FEET PER SPACE DO WE HAVE THERE? BECAUSE THAT THING SEEMS TIGHT TO A FELLOW WHO DRIVES AN F-150. HE'S DONE. NO IDEA. YEAH, OKAY. I'D LOVE FOR YOU TO GET BACK TO ME ON THAT, BECAUSE. AND I'LL JUST TELL YOU WHERE I'M GOING WITH THIS THING. AND I MAY BE AN OUTLIER ON THIS COUNCIL, AND IF SO, FINE, IGNORE ME. BUT BUT I LIKE THE IDEA OF NUMBER THREE BECAUSE IT, IT, IT MITIGATES THE NUMBER OF PARKING STRUCTURES I HAVE TO BUILD. RIGHT? IT PARKS MOST PEOPLE, BUT I DON'T WANT IT TO BE SUPER TIGHT. I COULDN'T CARE LESS. ACTUALLY. I COULD CARE ABOUT RETAIL. I DON'T WANT IT. SO I'LL SAY THAT TO BEGIN WITH. I DON'T WANT ANYTHING TO DO WITH IT WITH THE RETAIL. BUT WHAT I'M WONDERING IS IF 356 IS A TIGHT NUMBER, COULD WE THEORETICALLY REDUCE EACH ROW BY ONE SPACE TO GIVE A LITTLE BIT MORE BREATHING ROOM SO WE'D HAVE A FEW LESS SPACES, SAME OVERALL COST, BUT ROOM FOR THE F-150. SO I DON'T THINK THE NUMBER OF WHAT MAYBE IN WHAT WE CAN DO HERE IS, IS FABIO, MAYBE YOU CAN ADDRESS SOME NATIONAL STANDARDS THAT YOU ALL SEE IN TERMS OF AVERAGE SQUARE FOOTAGE AND WHAT YOU SEE, WHAT YOU'VE PROPOSED HERE RELATIVE TO THE CONCERN ABOUT SPACE FOR INDIVIDUAL VEHICLES. YES. WHAT I WHAT I CAN OFFER WITH WITH THESE CONCEPTS IS WE THESE ARE ALL REGULAR SIZED SPACES. THERE ARE NO COMPACT SPACES. THE MINIMUM DRIVE AISLE WITH I THINK IT'S 24FT ON AVERAGE, RIGHT NATIONALLY. BUT THIS HAS 25FT. SO IT GIVES YOU THAT EXTRA FOOT. OKAY. EVERYTHING IS NINE BY 18. OKAY. PATRICK, YOU'RE TALKING ABOUT THE SIZE OF THE SPACE, NOT. YES SIR.

WHICH IS NINE BY 18. YES. 962FT■!S. RIGHT. YEAH. NINE BY 360 IS NOT RELEVANT TO WHAT YOU'RE TALKING ABOUT. OKAY. I'M SORRY THAT I WAS WRONG, OKAY? IT'S. I JUST WANTED TO MENTION THAT THE CHESTNUT SQUARE PARKING GARAGE IS A LOWER LEVEL SERVICE GARAGE. IT WAS IT WAS DEVELOPER DEVELOPED AND BUILT, AND IT IS A MUCH LOWER LEVEL OF SERVICE THAN THE GARAGE THAT WE'RE LOOKING AT HERE. WE'RE TRYING TO CREATE A GOOD DRIVING EXPERIENCE AND A GOOD EXPERIENCE. SO OKAY, WE HAVE YEAH, THE AMOUNT OF SPACE IS THERE'S ONLY 300 ISH PARKING SPACES IN THAT GARAGE, AND IT FEELS A LOT MORE TIGHT THAN THIS ONE WOULD. OKAY. SO IS IT FAIR TO SAY GENERALLY, AND I'M NOT TRYING TO HOLD YOU ALL TO ANYTHING THAT FELL IN AN F-150 MIGHT HAVE A BETTER EXPERIENCE THAN ONE OF THESE GARAGES THAN HE WOULD IN THE CHESTNUT STREET.

IT IS MY OPINION. OKAY, OKAY. THAT'S WHAT I WANTED TO HEAR. THANK YOU. OKAY. AND THANK YOU, MR. MAYOR. ALL RIGHT. A COUPLE OTHER THINGS THAT WE NEED TO TALK ABOUT RELATIVE TO THIS PROJECT. AND THIS SLIDE HERE IS THE BUDGET CONSIDERATIONS FOR THE PARKING STRUCTURE. LOOKING

[01:45:03]

SO YOU'RE LOOKING AT SOMEWHERE AROUND THE END OF NOVEMBER 2028 FOR IT BEING OPERATIONAL. SO WITH THAT, WE WILL STAND FOR ANY OTHER QUESTIONS THAT YOU ALL MAY HAVE UNDER OPTION THREE, THE 613 SPACES. AND I AGREE WITH PATRICK. I MEAN, I'M MAXIMUM NUMBER. GIVE US SOME KIND OF SENSE ABOUT WHAT WHAT KIND OF SUPPLY THAT WOULD GIVE TO DOWNTOWN. I'M JUST TRYING TO ANTICIPATE A GROWTH. WHAT WOULD 600 SPOTS DO TO THE OVERALL PARKING NEEDS FOR THE DOWNTOWN AREA? FOR WHAT PERIOD OF TIME WOULD WE ABSORB THAT FIRST 12 MONTHS? SO WOULD IT GET US A COUPLE OF YEARS? I MEAN, GIVE ME A SENSE OF WHAT 613 SPACES ADDED TO THE INVENTORY WOULD GIVE US AN. YEAH, I THINK IT'S A COMBINATION. AND I'M GOING TO LOOK TOWARDS SOME OTHERS THAT MAY HAVE ADDITIONAL INFORMATION ON THE PARKING DEMAND STUDIES THAT HAVE BEEN DONE. HOWEVER, THOUGH, I THINK WHEN YOU'RE LOOKING AT WHAT IS THE NEEDED SUPPLY IN THE AREA, IT'S TWO COMPONENTS. THE FIRST COMPONENT IS EXISTING DEMAND. AND CERTAINLY YOU HEAR FROM BUSINESSES AND OTHER IN THE AREA THAT ARE LOOKING FOR ADDITIONAL PARKING THAT WOULD HAVE BEEN IDENTIFIED AS PART PART OF THAT PARKING STUDY. THE SECOND PIECE IS LOOKING AT FUTURE DEMAND AND SOME OF THE CONSIDERATIONS THAT HAVE BEEN DISCUSSED INCLUDE VARIOUS RETAIL HOTELS, OFFICE SPACES, AND WE'VE DONE PRELIMINARY ESTIMATES ON WHAT WE COULD EXPECT OR WHAT ARE THE KNOWN DEVELOPMENTS. AND WE'RE LOOKING AT AROUND 400 SPACES FOR THAT.

SO THERE'S A DELTA. IF YOU WERE TO TAKE THE 613 OF AN ADDITIONAL 200 SPACES THERE TO MEET EXISTING DEMAND, THAT'S ROUGH MATH. BUT AGAIN, SOME OF THE FUTURE DEVELOPMENT FOR OTHER SITES AROUND THAT AREA IS ALSO UNKNOWN. IT'S NOT IT'S NOT NET NETTING MUCH. IT IS HIGHLY DEPENDENT UPON FUTURE DEVELOPMENT AS WELL. RIGHT. YEAH. IT'S YOU KNOW, WE MAY WE MAY WANT TO MONETIZE IF WE TRY TO PUT THIS PIG IN THE PYTHON, WE MAY WANT TO MONETIZE THE EXISTING REAL ESTATE WHERE THE HEART WELL, I'LL CALL THE HARVEST PARKING LOT CURRENTLY SITS, YOU KNOW, AND SELL THAT WHICH WOULD TAKE AWAY PARKING, RIGHT? SO THERE'S MOVING PARTS, THE THE COST ESTIMATE ON HERE, THOUGH. ONE OF THE THINGS, AND THIS GETS A LITTLE BIT TO WHAT MISS HOWE BLACK WAS TALKING ABOUT EARLIER, SHE'S BEEN PATIENT SITTING HERE WITH US THIS WHOLE TIME IS I THINK IT'S VERY IMPORTANT THE ESTHETIC ON THIS THING. AND I MAY HAVE AN APPETITE. WE MAY HAVE AN APPETITE TO OVER ENGINEER THE ESTHETIC ON THIS BEYOND WHAT A NORMAL PARKING GARAGE WOULD BE. SO WHAT KIND OF ESTHETIC ARE WE PRICING INTO THIS COST ESTIMATE? I WILL LET YOU ANSWER THAT QUESTION. THANK YOU. RYAN. IF THE HANDOUT THAT I THINK YOU HAVE RECEIVED HAS A MORE DETAILED INFORMATION, AND WE HAVE ACCOUNTED FOR A HISTORIC THEME. OKAY. ALONG THE PRIMARY ELEVATIONS, RIGHT. LIKE KENTUCKY, TENNESSEE HUNT. OKAY.

THE SIDE THAT FACES THE PARK WOULD STILL HAVE, YOU KNOW, A NICE FACADE, BUT IT WOULD BE LESS EXPENSIVE. OKAY. WE'RE LOOKING AT BRICK STONE FOR, FOR THE HISTORIC THEME. GOOD. AND, AND THAT'S, I THINK WE INCLUDED ABOUT $100 PER SQUARE FOOT OF, OF FACADE. OKAY. AND THAT ESTIMATE AND THAT'S SHOWN AS A, AS AN ENHANCEMENT. THANK YOU. MR. MAYOR, IF I MIGHT, I KNOW

[01:50:07]

NOW, THAT DOESN'T INCLUDE DAVIS, WHERE WE GOT 200 SPACES AND THE APPROXIMATELY 300 FROM THE CHESTNUT GARAGE. BUT MY POSITION IS IF YOU PUT IT ON, IF YOU GO AND YOU'RE PUTTING A GARAGE THERE AND YOU'RE PUTTING IT IN AN AREA OF DOWNTOWN THAT DOESN'T NECESSARILY NEED 600 PARKING SPACES RIGHT NOW, WILL IT? EVENTUALLY, YES. RIGHT NOW? PROBABLY NOT. I MEAN, SO MICHAEL. YES, SIR. I THINK YOU'RE CORRECT. IF IF THERE'S ONLY A GARAGE BUILT ON THE OLD CITY ON ON THAT SITE AND OPTION THREE, THERE IS NO NEED. IT'S IN THE WRONG SPOT, RIGHT? HOWEVER, IF AN OFFICE BUILDING AND A HOTEL, SO ON AND SO FORTH ARE DEVELOPED IN THIS AREA, THERE IS DEFINITELY A NEED FOR THAT PARKING GARAGE. YOU'RE ABSOLUTELY RIGHT. AND THERE'S ALSO MORE LAND DIRECTLY TO THE NORTH OF OLD CITY HALL, RIGHT? AND I THINK MR. QUINN MAKES A VERY STRONG POINT THAT THE OPTION THREE WHILE HAS SIGNIFICANT ADVANTAGES, ONE OF THE DISADVANTAGES IS THAT IS PRIME REAL ESTATE. AND IS THAT THE HIGHEST AND BEST USE TO PLACE A GARAGE ON. OR IS THERE ANOTHER LOCATION THAT WOULD SERVE THAT PURPOSE AND PRESERVE THAT PIECE FOR A HIGHER AND BETTER USE? I THINK IT'S A

[01:55:04]

WE CAN'T MOVE IT TO A DIFFERENT SITE. OKAY. SO IT NEEDS TO STAY IN THAT IN THAT ON THAT PARCEL.

YEAH. OKAY. BUT ONE, ONE THING YOU'RE DOING IS YOU'RE MOVING. IF YOU TOOK THAT CONCEPT, YOU'RE ACTUALLY MOVING THE PARKING GARAGE FURTHER AWAY FROM RESIDENTIAL INVISIBILITY WOULD BE AN ISSUE. SO. WHAT GO INTO THREE AND I DON'T I AGREE WITH WITH MR. QUINT THAT, YOU KNOW, MAYBE THIS IS MAYBE WE DON'T BUILD AS MANY PARKING SPACES ON THIS BUILDING, ON THIS PARKING STRUCTURE. AND WE STILL HAVE ALTERNATIVES DOWN THE ROAD AS OUR DEMAND FOR PARKING BECOMES AVAILABLE THROUGH THE GROWTH DOWN THERE. SO. SO THE IDEAL SITE TODAY IS, IS THE MUNICIPAL COURT BUILDING FOR PARKING TODAY THAT HAS THE BIGGEST, THE MOST IMMEDIATE IMPACT, RIGHT? NO. WELL, IF YOU WERE TO LOOK AT THE BEST LOCATION IN DOWNTOWN MCKINNEY AT THIS AT THIS MOMENT, THE NEED WOULD BE. THAT WAS THE RESULT OF THE STUDY THAT WE DID SEVERAL YEARS AGO. WAS THAT THE IDEAL POSITION WAS WHERE MUNI COURTS IS CURRENTLY. RIGHT. BUT, YOU KNOW, WHEN YOU LOOK AT THE OPTIONS THAT YOU HAVE AND YOU WANT TO GO TO THE THIRD ONE CONCEPT, WHEN YOU LOOK AT THE OPTIONS THAT YOU HAVE, IT'S NEVER GOING TO BE MORE COST EFFECTIVE TO BUILD THIS MANY PARKING SPACES AS IT IS TODAY, RIGHT? THIS IS CENTRALLY LOCATED. IT'S WITHIN A, YOU KNOW, A BLOCK OR A BLOCK AND A HALF OF DOWNTOWN, WHICH IS THE MOST THING THAT WE HEAR ABOUT IS THAT IF YOU DON'T GET TO PARK WITHIN A BLOCK OR TWO OF DOWNTOWN THAT, YOU KNOW, THE PARKING IS, IS OUT OF BOUNDS, WE DO THINK THAT THERE'S GOING TO BE FUTURE DEVELOPMENT IN THIS AREA AND TO THE NORTH OF THAT, AND THE PARKING IS GOING TO BE ABSOLUTELY REQUIRED AT THAT POINT IN TIME. AND WE HAVE THE OPPORTUNITY, IF WE HAVE THIS MANY PARKING SPACES OF PUTTING IN SOME RESERVE PARKING AREAS WITHIN THAT GARAGE FOR A HOTEL OR THE OFFICE DEVELOPMENT AND THINGS LIKE THAT. SO THIS IS A GREAT LOCATION IF YOU CHOOSE TO, TO DO IT AT THIS TIME. BUT MR. MAYOR, YOU ARE CORRECT. WE THINK THE MUNICIPAL COURT LOCATION IS IDEAL FOR ANOTHER PARKING FACILITY. BUT I THINK WHAT WE'VE BUT MR. QUINN HAD IDENTIFIED IS THAT WE'RE GOING TO NEED IT. WE'RE GOING TO WE'RE GOING TO HAVE ANOTHER ONE. THIS ISN'T GOING TO MEET ALL OF OUR DEMAND, AND WE WILL COME BACK SOMEDAY IN THE FUTURE WITH HOPEFULLY THAT SITE AS WELL. RIGHT. WELL, AND AGAIN, IF THIS SITE IS DEVELOPED AS AN CONCEPT THREE, IF YOU WILL, THAT THE GARAGE WILL BE NEEDED IN THAT AREA. BUT TO MR. QUINN'S POINT, IT'S NOT NEEDED IF THERE'S NO DEVELOPMENT IN THAT AREA. RIGHT. SHOULD WE ASK MR. KOSKI TO TALK ABOUT THE POTENTIAL FUTURE DEVELOPMENT? I MEAN, THAT'S WE CAN PREDICT HIS HIS MESSAGE. REMEMBER I SAID BE BULLISH TEAM EFFORT. YES. THANK YOU. YES IT IS PRESIDENT OF THE EDC. YOU KNOW WE'RE GETTING A LOT OF INTEREST FOR THE OFFICE COMPONENT. AND THE QUESTION DOES COME UP. THEY WANT ADJACENT PARKING OF COURSE. AND COVERED PARKING. IS THAT SPECIAL PARKING THAT THEY'RE LOOKING FOR TO COMPETE WITH THOSE HIGHWAY LOCATIONS. SO FROM OUR VIEW, IN MY POSITION, AT LEAST, WE'RE TRYING TO ESTABLISH WHERE THE OFFICE CAN GO. I'VE HEARD MAYOR PRO TEM FELT JUST TALK ABOUT MOVING THE HOTEL AND OFFICE, WHICH I THINK WE'VE ALL SKETCHED THOSE IDEAS AT STAFF LEVEL BACK AND FORTH. BUT I'M GOING TO A HOLDING PATTERN RIGHT NOW, TRYING TO FIGURE OUT WHERE THE OFFICE CAN GO. AND THIS GARAGE IS KIND OF LINCHPIN, IF YOU WILL, TO KIND OF HELP GUIDES US. BUT MR. MAYOR, YOUR TAKE AWAY FROM MY

[02:00:05]

A COUPLE OF THINGS. SO WE'VE GOT A SCHEDULED TOURIST MEETING AT FIVE AND IT'S AFTER FIVE.

AND THAT AGENDA IS FAIRLY LENGTHY. WE WE MAY NEED TO PUSH OFF THE VAPE SHOP TO OUR NEXT MEETING FOR FEAR OF RUNNING INTO OUR COUNCIL MEETING. WE'RE NOT WE'RE NOT GETTING OUT ANYTIME SOON. JUST LETTING YOU GUYS KNOW WE STILL HAVE. WE CAN BRING. I'M SORRY, DO WE HAVE AN EXECUTIVE SESSION? WE DO. WE DO IF WE CAN GET TO IT. YEAH. IF WE CAN GET TO IT. WE HAVE MORE QUESTIONS ON PARKING GARAGES. SO LET'S BRING THIS BACK. NEXT MEETING. BRING IT BACK NEXT MEETING. 616616 RYAN, IS THAT WORK? CAN YOU REENGAGE EVERYBODY ALREADY? OKAY, OKAY.

THANK YOU. OKAY. THANK YOU. AND I HAVE A QUESTION, SO I'LL ASK IT AGAIN. EVERY ENTRANCE IS ON HUNT STREET, SO I'D LIKE TO KNOW THE WHY PART, BECAUSE IF YOU CHOOSE OPTION 1 OR 2, THAT'S, THAT'S A PROBLEM. BECAUSE WHEN THOSE CARS EXIT AND GO LEFT, WHERE DO THEY GO? OKAY. AND THE HISTORIC DISTRICT PART, WHAT WAS THE FIRST PART OF WHAT YOU SAID? WHY DOES EVERY GARAGE EXIT AND ENTER OFF OF HUNT STREET? PART OF THE REASON IS BECAUSE THE ORDINANCE DOESN'T ALLOW DRIVES FROM THE FROM PEDESTRIAN PRIORITY STREET A OR B, WHICH ARE KENTUCKY AND EVEN HUNT. I THINK IT'S PRIORITY B STREET, BUT WHAT WE'RE LOOKING AT IS A FRICTIONLESS ACCESS THAT THAT YOU WOULD NOT HAVE GATES. SO VEHICLES WILL WILL CIRCULATE QUICKLY AND BE LIMITED BY BY THE STREET TRAFFIC CAPACITY. HOW MANY VEHICLES WE CAN PUT OUT ON THE STREET. OKAY, LET ME ASK YOU THIS. HAVE YOU DRIVEN DOWN HUNT STREET WEST? YES.

OKAY. AND IN YOUR OPINION, YOUR PROFESSIONAL OPINION, DOES THAT WORK? EXITING A PARKING GARAGE OF 463 CARS EXITING AND TURNING WEST ONTO HUNT STREET? DOES THAT WORK? ARE YOU ARE YOU LOOKING AT CONCEPT 2 OR 1 TWO EITHER ONE. YEAH, YEAH, IT DEPENDS ON IF YOU IF YOU HAVE AN EVENT WHERE, WHERE EVERYBODY LEAVES AT THE SAME TIME OR COMES IN AT THE SAME TIME, I THINK YOU WOULD HAVE SOME, SOME TRAFFIC ISSUES. OKAY. BUT IF THERE IS NO SPECIFIC EVENT TIMES PEOPLE COME IN AND OUT AT DIFFERENT TIMES. I THINK THE STREET COULD COULD HANDLE THAT.

THAT'S PART OF THE TASK. ALSO TO ASSESS THE TRAFFIC IMPACT ON THE STREET. I'LL MAKE A COMMENT BECAUSE I DRIVE DOWN HUNT AND I DRIVE DOWN HUNT IN THE MIDDLE OF THE DAY. AND IF THERE'S PEOPLE PARKED ON BOTH SIDES, IT'S DIFFICULT TO GET DOWN HUNT STREET, PERIOD. SO I SEE WHERE THE MAYOR'S COMING FROM. YEAH, YEAH, WE NEED TO LOOK AT THAT. YEAH, WE CAN LOOK. WE WILL LOOK AT IT. YEAH. OKAY. SO WITH THAT, WE'LL BRING THIS BACK ON JUNE 16TH. WE WILL ALSO BRING BACK 26-0491. OPTIONS FOR REGULATION OF VAPE OR SMOKE SHOPS IN MCKINNEY. AND MR. CITY MANAGER WITH THAT YOU COULD, IF YOU WANT TO GET STARTED ON TIME OR IF YOU DO EXECUTIVE SESSION.

YEAH, WE WE FEEL LIKE DOING THAT. WE'LL HAVE TO WAIT. YEAH. OKAY. OR WE CAN DO. WE'RE WAITING ON. IS ANY MEMBER IS JUST US OR IS YOU WILL HAVE YOUR MEMBERS THE OTHER. THEY MIGHT BE HERE. YEAH HE'S HERE. HE'S RIGHT HERE. OKAY. SO IT'S UP TO YOU. WE WANT TO GET STARTED ON TIME AS WE JUST DO YOUR EXECUTIVE SESSION AFTER THE REGULAR. YEAH. OKAY. YEAH.

[EXECUTIVE SESSION]

[02:05:02]