26-0520 Conduct a Public Hearing to Consider/Discuss/Act on a Resolution of the City Council of the City of McKinney, Texas, Regarding the Application of The NRP Group, to the Texas Department of Housing and Community Affairs, for a 4% Housing Tax Credit to Construct a New Housing Development to be Known as “The Franklin Branch Apartments”

[26-0520 Conduct a Public Hearing to Consider/Discuss/Act on a Resolution of the City Council of the City of McKinney, Texas, Regarding the Application of The NRP Group, to the Texas Department of Housing and Community Affairs, for a 4% Housing Tax Credit to Construct a New Housing Development to be Known as “The Franklin Branch Apartments”]

WE'LL MOVE TO OUR REGULAR AGENDA. THESE ITEMS. MAY HAVE A PUBLIC HEARING ATTACHED. SO IF YOU HEAR REGARDING ONE OF THE ITEMS OF THE PUBLIC HEARING, THIS IS THAT PART OF THE AGENDA.

FIRST ITEM IS 26-0520. A PUBLIC HEARING TO CONSIDER A RESOLUTION OF THE CITY COUNCIL REGARDING THE APPLICATION OF THE NRP GROUP TO THE TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS FOR A 4% HOUSING TAX CREDIT. EXCUSE ME, MISS LEE. GOOD EVENING, MAYOR AND COUNCIL MARGARET LEE, HOUSING AND COMMUNITY DEVELOPMENT DIRECTOR. SO JUST TO PROVIDE YOU WITH A LITTLE BIT OF CONTEXT ON THIS PROJECT, THE NRP GROUP WAS SELECTED IN 2024 IN RESPONSE TO A RFQ THAT WAS ISSUED BY THE MCKINNEY HOUSING FINANCE CORPORATION.

SINCE THAT TIME, THE COUNCIL HAS APPROVED A PETITION TO ANNEX AND REZONE A 15.7 ACRE SITE IN THE SOUTHWEST CORNER OF FM 1461 AND BAXTER WELL ROAD, AND THE PROJECT IS KNOWN AS THE FRANKLIN BRANCH APARTMENTS, SO THIS WILL BE A 100% AFFORDABLE PROJECT. IT WILL INCLUDE 288 UNITS OF MULTIFAMILY RENTAL HOUSING, AND THE BREAKDOWN WILL INCLUDE BEDROOM UNITS THAT INCLUDE 1 TO 4 BEDROOMS. THE AFFORDABILITY WILL RANGE FROM 30% TO 70% AMI, WITH 30% OF THE TOTAL UNITS AT 70%, AMI 60% OF THE UNITS AT 60% AMI, AND 10% OF THE UNITS AT 30% AMI. AND SO THIS IS A CO-DEVELOPMENT PARTNERSHIP PROJECT WITH THE MH FC, WHICH MEANS THAT THE PROJECT WILL RECEIVE TAX EXEMPTIONS IN RESPONSE TO THOSE TAX EXEMPTIONS, THE MH FC WILL RECEIVE APPROXIMATELY $5.9 MILLION OVER 15 YEARS. AND I ALSO HAVE NICK WALSH FROM THE NRP GROUP TO PROVIDE YOU WITH MORE DETAILS ABOUT THE PROJECT. I'LL INVITE NICK TO COME UP.

[00:15:07]

GOOD EVENING, COUNCIL MEMBERS. MR. MAYOR, THANK YOU SO MUCH FOR HAVING ME HERE TONIGHT FOR THIS ITEM. SO THIS IS A RESOLUTION OF NO OBJECTION. THIS IS A REQUIREMENT FOR THE FINANCING FOR THE PROPERTY. SO NOW THAT WE'VE GONE THROUGH A LOT OF THE DEVELOPMENT PROCESS HERE IN THE CITY, WE NOW ACTUALLY HAVE TO GO TO THE STATE AND SUBMIT AN APPLICATION.

AND THIS IS A PREREQUISITE FOR SUBMITTING THAT APPLICATION TO THE STATE. SO VERY BRIEFLY, IF I CAN. HERE WE GO. SO NRP, WE ARE A NATIONAL DEVELOPER OF MULTIFAMILY HOUSING. WE DO EVERYTHING FROM AFFORDABLE HOUSING, MIXED INCOME, LUXURY MARKET RATE ALL ACROSS THE COUNTRY. WE ARE VERTICALLY INTEGRATED. THE CONTRACTOR, THE PROPERTY MANAGER AND THE DEVELOPER. SO THE BUCK STOPS WITH US IN TEXAS, WE ARE EXTREMELY PROMINENT DOING PARTNERSHIPS ALL ACROSS THE STATE. OVER 30,000 UNITS DELIVERED AND MOST OF WHICH ARE ACTUALLY AFFORDABLE HOUSING ALL THROUGHOUT TEXAS. BUT JUST TO REHASH WHAT WE WHAT YOU JUST HEARD, THIS ACTUALLY STARTED BACK IN SEPTEMBER OF 2024, WHEN COUNCIL AT THE TIME ISSUED AN RFQ TO DO ANOTHER PARTNERSHIP FOR AFFORDABLE HOUSING WITH THE MCKINNEY HOUSING FINANCE CORPORATION. WE WERE SELECTED LATE IN 2024, AND THEN WE SPENT ALL OF LAST YEAR FIRST IDENTIFYING A SUITABLE PROPERTY, GAINING CONTROL OF THAT PROPERTY, BEGINNING THE DUE DILIGENCE PROCESS, WORKING WITH THE HFC BOARD AND STARTING THE ZONING AND ANNEXATION PROCESS.

SO WE DID START THAT WENT THROUGH THE ENTIRE PROCESS IN 2025, AND THEN IN 2026, EARLIER THIS YEAR IN FEBRUARY, YOU ALL DID APPROVE THE ZONING AND ANNEXATION FOR THAT PROPERTY.

AND NOW WE ARE MOVING FORWARD AND WE HOPE TO WE VERY MUCH HOPE TO PUT A SHOVEL IN THE GROUND BEFORE THE END OF THIS YEAR. THIS IS JUST THE LOCATION OF THE PROPERTY. YOU CAN SEE HERE. IT'S IN THE NORTHWEST QUADRANT OF THE CITY. IT IS IMMEDIATELY ADJACENT TO THE NEW ALIGNMENT OF THE 380 LOOP. HERE'S JUST ANOTHER AERIAL IMAGE THAT YOU CAN SEE. SO WE ARE JUST OFF OF THAT NEW 380 LOOP, WHICH AS YOU ALL KNOW, IS GOING TO BE TRANSFORMATIVE FOR THIS PART OF TOWN. YOU KNOW, TEN LANE EXPRESSWAY FRONTAGE ROADS, PRETTY SIGNIFICANT. BUT EVEN AS IT EXISTS TODAY, WE ARE A FIVE MINUTE DRIVE FROM BAYLOR SCOTT AND WHITE MEDICAL CENTER.

THEY'RE JUST DOWN THE ROAD. YOU DON'T EVEN HAVE TO MAKE A TURN. AS WELL AS ALL THE AMENITIES UP AND DOWN UNIVERSITY AND OFF OF 75. AGAIN, HERE'S A RENDERING FROM TXDOT, JUST SHOWING WHAT THAT FINAL ULTIMATE 380 IS GOING TO LOOK LIKE RIGHT HERE IN THIS AREA. AND WE ARE JUST A COUPLE BLOCKS UP THE STREET FROM THIS MAJOR INTERSECTION. HERE'S THE SITE PLAN YOU CAN SEE HERE, YOU KNOW, JUST UNDER 16 ACRES. WE HAVE NINE RESIDENTIAL BUILDINGS, STANDALONE CLUBHOUSE AMENITIES THROUGHOUT THE SITE. WE ARE AT THE INTERSECTION OF FM 1461 AND BAXTER WELL ROAD. IN ADDITION TO OUR PROJECT, I WOULD JUST MENTION THAT THERE IS AN UNBELIEVABLE AMOUNT OF GROWTH AND DEVELOPMENT COMING HERE IN THIS LITTLE QUADRANT. YOU KNOW, AT THE SAME NIGHT THAT WE WERE ANNEXED, YOU ALL APPROVED ANOTHER PROJECT THAT WAS ANNEXED JUST ADJACENT TO US. AND THERE'S MASSIVE SINGLE FAMILY PROJECTS COMING JUST ACROSS THE STREET AS WELL. SO THIS WHOLE AREA IS RAPIDLY CHANGING, AND I'M GLAD WE WERE ABLE TO KIND OF GET IN ON THE GROUND FLOOR AND LOCK IN THIS AFFORDABILITY LONG TERM. SO THE UNIT MIX HERE, WE DO HAVE A MIX OF ONE THROUGH FOUR BEDROOM FLOOR PLANS THAT ALLOWS FOR HOUSING FOR FAMILIES, SPECIFICALLY WORKING FAMILIES WITH CHILDREN. AND SO WE HAVE A GREAT MIX THERE. AND THEN FROM AN ARMY STANDPOINT, WHICH IS AREA MEDIAN INCOME, WE ARE DELIVERING THE 30% ARMY UNITS. NOW THAT IS THE MOST CHALLENGING DEMOGRAPHIC IN ORDER TO ACTUALLY HAVE AFFORDABILITY AT THAT LEVEL, IT'S REALLY CHALLENGING TO DELIVER THOSE UNITS WITHOUT ADDITIONAL SUBSIDY. SO WE'RE REALLY HAPPY THAT WE HAVE 10% OF THE UNITS AT THAT LEVEL. BUT AGAIN, ALL 100% OF THE UNITS HERE AT THIS PROPERTY ARE RENT AND INCOME RESTRICTED AT THESE VARIOUS LEVELS. SO 30, 60, AND 70% AMI, THIS IS WHAT THAT LOOKS LIKE FOR COLLIN COUNTY, SO THAT THOSE NUMBERS GET PUT OUT ANNUALLY BY HUD. YOU CAN SEE THE BREAKDOWN BY HOUSEHOLD SIZE. SO STARTING AT, YOU KNOW, ONE PERSON HOUSEHOLD AT THAT LOWEST LEVEL, MAKING $25,000 A YEAR UP TO, YOU KNOW, WITH THE 70% AMI, YOU COULD HAVE A HOUSEHOLD OF FOUR, FOUR PERSONS IN THE 80,000. SO IT IS QUITE THE RANGE. BUT YOU'RE REALLY TALKING ABOUT THAT KEY WORKFORCE HOUSING. AND THEN HERE ARE SOME EXAMPLES OF PUBLICLY AVAILABLE SALARIES. MCKINNEY ISD FIRST YEAR TEACHER 63,500 FALLS WITHIN THAT WITHIN THAT RANGE. CITY OF MCKINNEY. LIBRARIAN. COLLIN COUNTY DETENTION OFFICER. THE COLLIN

[00:20:02]

COUNTY FACILITIES, AS YOU KNOW, ARE JUST DOWN THE STREET FROM THIS PROJECT SITE. AND I WOULD BE REMISS IF I DIDN'T MENTION THAT THIS IS OUR SECOND PARTNERSHIP WITH THE CITY OF MCKINNEY AND THE CITY'S HFC. SO OUR FIRST PROJECT WAS THE FIRST EVER PARTNERSHIP THAT THE HFC DID. THIS WAS THE INDEPENDENCE BACK IN 2019. WE WENT THROUGH THE SAME APPROVAL PROCESS, BROKE GROUND IN 2020. SO THIS HAS BEEN JUST PROBABLY ONE OF OUR MOST SUCCESSFUL PROJECTS WE'VE EVER HAD IN IN TEXAS, BUT ALSO NATIONWIDE. THE PENT UP DEMAND, IT WAS THE QUICKEST LEASE UP WE'VE EVER SEEN, AND IT'S BEEN THE MOST SUCCESSFUL PROPERTY. I MEAN, IT IS THE WAIT LIST IS HUNDREDS AND HUNDREDS OF PEOPLE LONG. SO IT IS THE DEMAND FOR THIS QUALITY, BUT ALSO FOR THIS AFFORDABILITY IS HUGE. AS YOU ALL KNOW, IN THE CITY OF MCKINNEY. AND LAST THING I WILL MENTION, I'LL JUST CLOSE WITH IN ADDITION TO PROVIDING THE HOUSING, IN ADDITION TO PROVIDING THE AFFORDABILITY, ONE OF THE MOST IMPORTANT THINGS WE DO AS PART OF THESE PROJECTS IS WRAP AROUND RESIDENT SERVICES. AND SO AT NO COST TO RESIDENTS AT THE PROPERTY, WE DO WORK WITH A NONPROFIT SUPPORTIVE SERVICES PROVIDER. THERE'S AFTER SCHOOL PROGRAMING, THERE'S SUMMER CAMPS FOR THE KIDS AT THE PROPERTY. BUT IN ADDITION TO, YOU KNOW, HELPING OUT THE CHILDREN, THERE'S ALSO, YOU KNOW, FINANCIAL LITERACY, FIRST TIME HOMEBUYER PROGRAMS, OTHER TYPES OF THINGS THAT MAKE SENSE SO THAT EVERYONE GETS TO PARTICIPATE, PARTICIPATE, AND GET THOSE SERVICES THAT HELP TO JUST, YOU KNOW, IMPROVE THE LIVES OF THOSE TENANTS WHO ARE GOING TO BE AT THIS PROPERTY. SO I WANTED TO MENTION THAT AS WELL. AND THAT'S BEEN REALLY SUCCESSFUL AT THE INDEPENDENCE. AND WE'VE SEEN A LOT OF PARTICIPATION FROM THE RESIDENTS AT THAT PROPERTY. SO THAT IS ALL I HAVE FOR TODAY.

BUT I'M HAPPY TO ANSWER ANY QUESTIONS. BUT AGAIN, THIS IS A PREREQUISITE FOR MOVING FORWARD WITH OUR APPLICATION TO THE STATE. AND IT IS A RESOLUTION THAT YOU DO NOT OBJECT TO THE FINANCING. YOU DO NOT OBJECT TO US SUBMITTING THAT APPLICATION TO THE STATE OF TEXAS. THANK YOU VERY MUCH. QUESTIONS? ANYONE? I'VE GOT A REMARK. NICK, YOU DON'T HAVE TO STAND UP FOR THIS, BUT YOU CAN IF YOU WANT. I LIVE A HALF MILE FROM THE INDEPENDENCE, AND SO IT'S BEEN ONCE IT'S ACTIVATED. THERE WAS SOME CONCERNS AMONG THE NEIGHBORS, BUT THERE'S BEEN ABSOLUTELY NO PROBLEM. THE PEOPLE THERE ARE SOME OF THE HAPPIEST PEOPLE. I'VE EXPERIENCED SUCH A NICE PLACE AND THEY FEEL SO GRATEFUL FOR THE FOR THE HOME THERE. WHEN WE DO WORKFORCE HOUSING LIKE THIS, IT'S IMPORTANT TO BE STRATEGIC AS FAR AS THE LOCATION GOES.

AND THAT STRUCK ME. AND I MENTIONED THIS WHEN YOU CAME AND GOT THE ZONING, BUT WANTED TO REPEAT IT, THAT I HAD A CONVERSATION EARLIER THIS YEAR WITH THE HEAD OF NURSING AT BAYLOR HOSPITAL. AND THAT'S A MAJOR, MAJOR EMPLOYER AND A MAJOR, MAJOR QUALITY OF LIFE PLACE FOR THE CITY OF MCKINNEY. AND THEY SAID THAT THEIR ACHILLES HEEL WAS BEING ABLE TO STAFF UP ORDERLIES. AND THESE ARE YOUR 30% OF ARMY PEOPLE. AND THEY SAID, THE PROBLEM IS WE DON'T HAVE ANYWHERE WHERE THEY CAN LIVE SOMEWHERE CLOSE TO BAYLOR HOSPITAL. AND I HAD NO ANSWER FOR HER, BUT THIS GAVE US AN ANSWER FOR IT. SO IT'S THE LOCATION IS IMPORTANT AND BEING ABLE TO. GIVE BAYLOR THAT OPPORTUNITY TO HAVE PEOPLE WHO COULD DO THESE CRITICAL JOBS, BUT VERY LOW PAYING JOBS IS VERY IMPORTANT. SO I'M SUPPORTIVE OF THIS. THANK YOU, MR. MAYOR. YES, I AGREE WITH PATRICK. THIS IS ACTUALLY A HALF A MILE FROM MY HOME. AND YOU GUYS PUT TOGETHER A GREAT PRODUCT. AND BEING THAT CLOSE TO THE HOSPITAL AND FIRE STATION NINE AND ALL THE OTHER THINGS THAT, YOU KNOW, SERVICES THAT SERVICE OUR COMMUNITY, THIS IS A GREAT LOCATION YOU GUYS PICKED OUT. THANK YOU. ANYONE ELSE? ALL RIGHT. DO WE HAVE A MOTION? I'LL MAKE A MOTION, MR. MAYOR, THAT WE APPROVE THE RESOLUTION. PUBLIC HEARING. OH, SORRY. PUBLIC HEARINGS. THAT'S THAT'S ON MR. GRIMES. IT'S HIS FAULT. THAT IS ON MR. GRIMES. ALL RIGHT. THIS IS A PUBLIC HEARING ITEM. IF YOU'RE HERE TONIGHT AND WOULD LIKE TO ADDRESS THE CITY COUNCIL REGARDING THIS PROPOSED RESOLUTION, PLEASE COME TO THE PODIUM. SEEING NONE, MR. MAYOR, I MOVE THAT WE CLOSE THE PUBLIC HEARING AND APPROVE THIS RESOLUTION OF NO OBJECTION. I'LL. SECOND, WE HAVE A MOTION BY COUNCILMAN CLOUTIER TO CLOSE THE PUBLIC HEARING AND APPROVE THE RESOLUTION. AS FOR STAFF RECOMMENDATION, SECOND BY COUNCILMAN FRANKLIN, IS THERE ANY DISCUSSION? PLEASE CAST YOUR VOTE. AND THAT MOTION

[26-0027Z3 Conduct a Public Hearing to Consider/Discuss/Act on a Request to Rezone the Subject Property from “BN” - Neighborhood Business District to “TR1.8” - Townhome Residential District, Located at 1001 North Kentucky Street, and Accompanying Ordinance]

CARRIES. NEXT ITEM IS 26-0027Z3. A PUBLIC HEARING TO CONSIDER REZONE OF A PROPERTY FROM BN2TR 1.8 TOWNHOME RESIDENTIAL DISTRICT. THIS IS AT 1001 NORTH KENTUCKY STREET. MR. REILLY THANK YOU, MAYOR AND COUNCIL. LUCAS REILLY, DIRECTOR OF PLANNING HERE BEFORE YOU WITH A REZONING REQUEST FROM OUR NEIGHBORHOOD BUSINESS ZONE TO OUR TR 1.8 TOWNHOME RESIDENTIAL

[00:25:03]

DISTRICT. USUALLY, I DON'T LIKE TO SPEND A LOT OF TIME ON OUR ZONING EXHIBITS BECAUSE I THINK THEY'RE A LITTLE BIT HARD TO SEE. BUT LET ME CLICK THROUGH HERE JUST TO GIVE YOU A BRIEF CONTEXT OF WHERE WE'RE AT. WE'RE IN THE DOWNTOWN HERE. HERE'S OUR EXISTING ZONING MAP FOR THESE AREAS. AND THEN THIS IS A LITTLE BIT TOO ZOOMED IN. SO I'M GOING TO START HERE. AND THEN I'LL GO BACK TO THAT FIRST IMAGE HERE JUST TO EXPLAIN A LITTLE BIT MORE ABOUT THIS CASE.

SO THIS PROPERTY IS APPROXIMATELY 0.3 ACRES LOCATED AGAIN AT 1001 NORTH KENTUCKY STREET. AND IT'S CURRENTLY IN OUR BE IN NEIGHBORHOOD BUSINESS DISTRICT, WHICH CORRELATES NOW TO OUR C-1 DISTRICT, WHICH IS KIND OF OUR NEIGHBORHOOD COMMERCIAL. THIS IS A LITTLE BIT OF AN INTERESTING CASE BECAUSE RIGHT NOW THIS PROPERTY IS IN THIS NEIGHBORHOOD BUSINESS DISTRICT THAT HAS SINGLE FAMILY, RS 60 ZONING BEHIND IT. AND THEN D R, WHICH IS OUR OLD DUPLEX ZONING ACROSS THE STREET. AND SO STAFF IS RECOMMENDING APPROVAL OF THIS REZONING REQUEST BECAUSE WE FEEL LIKE WE CAN'T PUT THE ANNOTATION ON, CAN WE? SORRY ABOUT THAT. YES, IT'S ON HERE. WE'RE RECOMMENDING APPROVAL OF THIS APPLICATION BECAUSE OR THIS REQUEST. EXCUSE ME, BECAUSE WE FEEL THAT. IT MAKES THE MOST SENSE FOR US TO BASICALLY RIGHTSIZE THE EXISTING ZONING FROM THE COMMERCIAL ZONING THAT IT IS ACTUALLY ENTITLED AS RIGHT NOW TO THE TOWNHOME RESIDENTIAL, WHICH WOULD REALLY MIMIC WHAT WE SEE ACROSS THE STREET IN THESE PARCELS. WE DID TAKE THIS BEFORE OUR PLANNING AND ZONING COMMISSION, WHO VOTED UNANIMOUSLY TO RECOMMEND APPROVAL OF THIS REZONING REQUEST, AND I WOULD BE HAPPY TO STAND FOR ANY QUESTIONS. LUCAS, THERE'S A LOT GOING ON WITH THIS. YES. COLOR BY NUMBERS. CAN YOU CAN YOU IDENTIFY 1001 ABSOLUTELY. I'M TRYING TO. SO THANK YOU VERY MUCH. THIS AREA RIGHT HERE IS THE LOT IN QUESTION. AND AS YOU CAN SEE, THERE'S AN ALLEY ON THIS SIDE AND BEHIND IT. AND THEN IT IS FRONTING ONTO KENTUCKY. BUT ONLY A PORTION OF THE LOT FRONTS ONTO KENTUCKY. AND SO IT'S A LITTLE BIT OF AN ODD SHAPED LOT THERE, WHICH WOULD RESTRICT IT IF THEY WERE TO TRY AND SUBDIVIDE IT FOR THE TR 1.8 USE, YOU KNOW, THEY'D BE RESTRICTED TO THAT MINIMUM WIDTH UNDER THAT ZONE, OR THEY COULD DEVELOP SOMETHING IN THAT ZONE, SUCH AS A DUPLEX OR TRIPLEX ON THAT LOT. THERE HASN'T BEEN ANY PLAN SUBMITTED OTHER THAN THIS IS JUST THE ZONING APPROVAL. THAT'S RIGHT. AT THIS POINT, LIKE, HOW DO YOU PARK THIS? RIGHT? YEAH, ABSOLUTELY. SO AT THIS POINT, WE DO NOT REALLY REVIEW SITE PLANS AT THE ZONING ENTITLEMENT STAGE. SOMETIMES PEOPLE PROVIDE THEM, EXCUSE ME, BUT WE ALWAYS REITERATE AT THE ZONING STAGE THAT WE CAN'T TIE DOWN A SITE PLAN UNLESS WE WERE IN THAT UNIQUE PD THAT HAS A SITE PLAN ATTACHED TO IT REQUEST. BUT IN THIS CASE, THEY WOULD HAVE TO MEET THE STANDARDS UNDER THE TR 1.8 ZONING, WHICH WOULD REQUIRE THE PARKING SPACES PER UNIT THAT MATCHES OUR EXISTING SINGLE FAMILY REGS. THAT'S THE EXISTING REQUIREMENT FOR PARKING IN THAT ZONE. THERE MAY BE SOME OVERLAYS IN THIS AREA DOWNTOWN THAT REDUCES THAT PARKING, BUT IT WOULD BE THE SAME STANDARD THAT EVERYONE UNDER THAT ZONING DISTRICT HAS TO FOLLOW. THANK YOU.

ABSOLUTELY. ANY OTHER QUESTIONS OF LUCAS? NO, LUCAS. THANK YOU. IS THERE AN APPLICANT HERE? NOPE. MAYBE. I DON'T THINK SO. OKAY. THIS IS A PUBLIC HEARING ITEM. IF YOU COME TONIGHT AND YOU WOULD LIKE TO ADDRESS THE CITY COUNCIL ON THIS PROPOSED REZONE ON KENTUCKY STREET, PLEASE COME TO THE PODIUM. ALL RIGHT. WE HAVE A MOTION. QUESTIONS? I'LL MAKE A MOTION THAT WE CLOSE THE PUBLIC HEARING AND APPROVE THIS ITEM. WE HAVE A MOTION BY MAYOR PRO TEM FELTUS TO CLOSE THE PUBLIC HEARING AND APPROVE THE ITEM. AS FOR STAFF RECOMMENDATION AND A SECOND BY COUNCILMAN CLOUTIER, IS THERE ANY DISCUSSION? PLEASE CAST YOUR VOTE. WAS THAT MOTION CARRIES. LUCAS, IF YOU COULD LET THE APPLICANT KNOW THAT THEIR ITEM WAS APPROVED TONIGHT.

[26-0037Z2 Conduct a Public Hearing to Consider/Discuss/Act on a Request to Rezone the Subject Property from “PD” - Planned Development District to “MF36” - Multi-Family Residential District, Located Approximately 1,100 Feet East of Custer Road and Approximately 280 Feet South of Eldorado Parkway, and Accompanying Ordinance]

[00:30:04]

THANK YOU VERY MUCH. NEXT ITEM IS 26-0037Z2. A PUBLIC HEARING TO CONSIDER. REZONE OF SUBJECT PROPERTY FROM PD PLANNED DEVELOPMENT TO MF 36 MULTIFAMILY RESIDENTIAL. THIS IS 1100FT EAST OF CUSTER ROAD, 280FT SOUTH OF EL DORADO PARKWAY. THANK YOU ONCE AGAIN.

LUCAS REILLY, DIRECTOR PLANNING PRESENTING ANOTHER REZONING REQUEST. THIS TIME WE ARE IN A VERY DIFFERENT AREA OF THE CITY OVER IN OUR SOUTHWESTERN QUADRANT. THIS PROPERTY IS MOST FAMOUSLY KNOWN AS THE PREVIOUS GLOBE LIFE CAMPUS. THERE'S AN OFFICE BUILDING THERE, AND THIS IS AN UNDEVELOPED PORTION OF THAT PROPERTY HIGHLIGHTED ON YOUR SCREEN. NOW, KIND OF, AS I'VE REFERRED TO IT, THE DONUT HOLE OF THIS PROPERTY AS IT STANDS TODAY, YOU CAN SEE THERE IN THE AERIAL, THIS IS APPROXIMATELY 14 ACRES RIGHT THERE IN THE CENTER OF THIS DEVELOPMENT THAT IS SURROUNDED ON ALL SIDES BY EITHER AN OFFICE, MULTIFAMILY OR COMMERCIAL. RETAIL USES. THE REQUEST BEFORE YOU THIS EVENING IS TO REZONE OUT OF THE EXISTING PD THAT THAT DICTATES THE DEVELOPMENT ON THIS SITE TO OUR MULTIFAMILY ZONING DISTRICT.

THERE'S A LOT OF DISCUSSION AROUND SPECIFICALLY THIS RECOMMENDATION DUE TO THE FACT THAT UNDER SB 840, THAT IS WHAT REALLY KIND OF UNLOCKED THIS PROPERTY FOR MULTIFAMILY DEVELOPMENT. WHEREAS PRIOR TO SEPTEMBER 1ST OF 2025, THIS WOULD HAVE BEEN A REQUEST THAT MIGHT HAVE BEEN VIEWED DIFFERENTLY BY STAFF. BUT DUE TO THE FACT THAT THE STATE HAS NOW PREEMPTED OUR ABILITY TO RESTRICT MULTIFAMILY DEVELOPMENTS, IT'S GIVEN STAFF A UNIQUE OPPORTUNITY TO LOOK AT EACH LOT ON A MORE CASE BY CASE BASIS, WHERE WE KNOW THE ENTITLEMENT THERE FOR MULTIFAMILY IS IT'S THERE. IT EXISTS BY OPERATION OF LAW UNDER SB 840. BUT WHAT DO WE SEE AND WHAT DO WE FEEL LIKE ARE THE BEST WAYS TO MOVE FORWARD FROM THE PLANNING DEPARTMENT STAFF IN ORDER TO SUPPORT OUR COMPREHENSIVE PLAN GOALS? AND SO AS WE REVIEWED THAT INTERNALLY, WE FELT LIKE THIS PORTION OF THE GLOBE LIFE CAMPUS WE SEE MAKES SENSE FOR THE PROPOSED LAND USE OF MULTIFAMILY, GIVEN THAT IT CAN SUPPORT THE SURROUNDING USES ON THIS CAMPUS AND ADJACENT CAMPUSES IN THIS AREA. AND SO FOR THOSE REASONS, AND I'D BE HAPPY TO TO GO INTO MORE DETAIL AT YOUR REQUEST, WE ARE RECOMMENDING APPROVAL OF THIS REZONING REQUEST. P AND Z ALSO RECOMMENDED UNANIMOUS APPROVAL WHEN WE TOOK THE ITEM BEFORE THEM, AND I'LL STAND FOR ANY QUESTIONS. ANYONE QUESTIONS OF MR. REILLY? NO, LUCAS. THANK YOU. ABSOLUTELY. IS OUR APPLICANT HERE? MAYOR? COUNCIL.

MY NAME IS RANDY HOWLETT. I'M HERE ON BEHALF OF THE APPLICANT OFFICE AT 1700 REDBUD, SUITE 300, HERE IN MCKINNEY. MR. REILLY HAS DONE AN EXCELLENT JOB OF EXPLAINING THE PROJECT AND THE PROPOSED SUBMITTAL TO MODIFY THE ZONING ON THE 14 ACRE PARCEL. AS HE EXPLAINED, THIS PARCEL IS AN UNDEVELOPED PIECE OF THE FORMER GLOBE LIFE CAMPUS THAT THE APPLICANT HAS UNDER CONTRACT. MR. CRAIG DAVID CRAIG, THE APPLICANT, IS HERE AND HE'S ACTUALLY GOING TO SPEAK AFTER ME TO KIND OF EXPLAIN A LITTLE BIT MORE ABOUT HIS FUTURE PLANS REGARDING THE ENTIRE CAMPUS, NOT JUST THE 14 ACRES. THIS IS A SEPARATE UNDEVELOPED TRACT IN THE CAMPUS.

IT DOES NOT FRONT ON EITHER STONEBRIDGE DRIVE OR ELDORADO PARKWAY. IT HAS A RETAIL STRIP ON EL DORADO PARKWAY THAT BUFFERS IT, AS WELL AS EXPERION OFFICE, STONEBRIDGE DRIVE. AS MR. REILLY EXPLAINED, THE PROPERTY IS CONTROLLED BY THE OLD STONEBRIDGE PD AND AFTER MEETING WITH STAFF AND OUR OFFICE, WE DETERMINED THAT IT WOULD BE MORE APPROPRIATE TO JUST APPLY FOR AND REQUEST A STRAIGHT MF36 ZONING WITHOUT ANY VARIANCES, RATHER THAN TRYING TO RELY UPON THE SENATE BILL. A FEW OF YOU HAVE HAVE HAD QUESTIONS REGARDING THE PARKING FOR THE SITE. WHILE THAT'S NOT PART OF THE ZONING APPLICATION TONIGHT, THE PLAN IS TO PROVIDE MORE PARKING THAN WHAT'S REQUIRED UNDER THE CURRENT PARKING ORDINANCE FOR MULTIFAMILY IN MCKINNEY. THE PLAN IS TO PROVIDE FOR. WHILE THE. THE CURRENT PARKING ORDINANCE ONLY REQUIRES ONE TO. 1 OR 1 SPACE PER UNIT, THE PLAN FROM THE DEVELOPER IS TO PROVIDE APPROXIMATELY 1.7 PARKING SPACES PER UNIT, WHICH IS APPROXIMATELY ONE PARKING

[00:35:07]

SPACE PER BED. WE. WE REQUEST YOUR FAVORABLE APPROVAL AND I'LL BE GLAD TO ANSWER ANY QUESTIONS. QUESTIONS OF MR. HOWLETT. ANYONE KNOW? THANK YOU VERY MUCH. WE APPRECIATE THE EXPLANATION. THIS IS A PUBLIC HEARING ITEM. IF YOU'VE COME TONIGHT AND WOULD LIKE TO ADDRESS CITY COUNCIL, PLEASE COME FORWARD. HONORABLE MAYOR AND MAYOR, PRO TEM AND DISTINGUISHED COUNCIL MEMBERS. MY NAME IS DAVID CRAIG. 6850 TPC DRIVE, SUITE 104, MCKINNEY, TEXAS. THIS ZONING REQUEST IS ONE COMPONENT OF VERY EXCITING MIXED USE PROJECT AND I AM THRILLED ABOUT IT. THIS FOR 14.5 ACRES IS ALSO CURRENTLY IN AG AND ALWAYS HAS BEEN. SO IT'S ON THE TAX ROLLS. I THINK MAYBE WE MAKE $5,000 AS A CITY. SO THIS ZONING EQUATES PROBABLY TO SOMEWHERE IN THE IN THE RANGE OF $70 MILLION. IT'S MY INTENTION TO TRANSFORM THIS CORPORATE CAMPUS INTO A THRIVING, MIXED USE DEVELOPMENT WITH THREE COMPONENTS. AND THAT'S WHAT YOU SEE ON THE GRAPHIC IN FRONT OF YOU, THE ZONING CASE TONIGHT OF THE 14.5 ACRES OF MULTIFAMILY, THERE'S ALSO 33.5 ACRES OF CORPORATE CAMPUS WITH AN EXISTING BUILDING OF 300,780 NET RENTABLE SQUARE FEET AND NEARLY TEN ACRES OF RETAIL, VERY SIMILAR TO A PROJECT IN DISTRICT 121. DISTRICT 121 IS ABOUT FOUR AND A HALF ACRES. SO YOU CAN IMAGINE WHAT THIS IS GOING TO LOOK LIKE. WHY DID I USE WHY DID I NOT USE SENATE BILL 840? AND PATRICK, YOU AND I HAVE HAD THIS CONVERSATION, I BELIEVE. WELL, FIRST I'D LIKE TO SAY I OPPOSE THE BILL AND I'M REALLY I'M WILLING TO LOBBY WITH OTHERS, BUT FOR AUSTIN TO CONTINUE TO TAKE CITY'S RIGHTS AWAY, I WANTED TO. A COLLABORATIVE APPROACH WITH CITY STAFF IN THEIR RECOMMENDATION. AND THIS IS THE RECOMMENDATION THEY GAVE US, REGARDLESS OF SB 840. THIS IS WHAT I BELIEVE ALL DEVELOPERS SHOULD DO. IF THEY CARE ABOUT THE CITY OF MCKINNEY, THEY SHOULD WORK WITH STAFF, AND IF IT DOESN'T WORK, THEN THEY SHOULDN'T DO IT. WORKING COLLABORATIVELY FOR THE BEST INTEREST OF THE PROPERTY IN THE CITY. I COMMEND STAFF FOR WORKING DILIGENTLY AND WORKING ALONGSIDE US AS A TEAM AND RECOMMENDING THIS FOR APPROVAL. THIS 14.5 ACRES OF MULTIFAMILY OR MF 36 COULD HAVE BEEN 492 UNITS, BUT IT'S ONLY PLANNED FOR 368 UNITS. THAT'S 124 UNITS LESS THAN WHAT MF 36 ALLOWS. I ALSO WOULD TELL YOU THAT IF YOU LOOKED AT THIS FROM JUST AN A V VALUE RIGHT NOW ON OUR TAX ROLLS, GLOBE LIFE IS 51 MILLION. THIS PROJECT, THIS MIXED USE PROJECT WILL BE SOMEWHERE AROUND 200 MILLION OF A B VALUE. AND WE'LL BE BRINGING THIS AG LAND OUT OF AG. SO I RESPECTFULLY REQUEST YOUR FAVORABLE APPROVAL. AND I APPRECIATE YOUR TIME AND EFFORTS AND ENERGIES. THANK YOU. DAVID, IF YOU STAY THERE FOR JUST A MOMENT, YOU AND I HAVE HAD SOME CONVERSATIONS ON THIS, AND I'M ON THE RECORD WITH YOU AND THAT I'M NOT I DON'T LOVE THIS. YOU KNOW, THE NEIGHBORS DOWN SOUTH SAY THAT WE HAVE OCEANS OF MULTIFAMILY AROUND THERE, AND WE DO NOW, EVIDENTLY, AND I TRUST YOU AND YOUR BUSINESS THAT YOU'RE A GOOD DEVELOPER. AND IF THERE WASN'T THE DEMAND, YOU WOULDN'T BE BUILDING IT. YOU KNOW, MY CONCERN, THOUGH, WAS ULTIMATELY, I CAN'T STOP IT. BUT I REALLY HATE THE PART OF SB 840 THAT SAYS PARKING IS AT A 1 TO 1. WE'VE NEVER DONE A 1 TO 1 HERE IN MCKINNEY, AND WE USED TO BE, I THINK, AT A 2 TO 1. AND NOW WE'RE WITHIN THE LAST. WE WERE AT ABOUT 1.75 TO 1. WHEN YOU HAVE THREE BEDROOM APARTMENTS IN, THEIR CHANCES OF THEM HAVING ONE CAR HOVER SOMEWHERE AROUND ZERO. SO YOU'VE REALLY GOT A, A, A PROBLEMATIC SITUATION IF YOU HAVE ONE PARKING SPACE PER UNIT. BUT YOU AND I HAVE TALKED AND WHAT I'M SAYING I CAN'T HOLD YOU TO AND YOU CAN'T EVEN FORMALLY COMMIT NOW UNTIL THERE'S A SITE PLAN, BUT THAT YOU ARE GOING TO SUBMIT A SITE PLAN THAT IS GOING TO HAVE A MUCH MORE ROBUST PARKING RATIO THAN WHAT THE STATE REQUIRES HERE, BECAUSE THAT'S REALLY, I THINK, THE BEST OUTCOME I CAN DELIVER TO THE RESIDENTS IS MAKING SURE THIS THING IS ADEQUATELY PARKED. AND YES, SIR, WE'LL SUBMIT THE

[00:40:05]

SITE PLAN ON MONDAY, AND THAT SITE PLAN WILL BE 1.7 PER UNIT AS DISCUSSED. AND I TOTALLY AGREE WITH YOU. THANK YOU. ANY OTHER QUESTIONS? THANK YOU FOR YOUR FAVORABLE CONSIDERATION.

THANK YOU. ANYONE ELSE CARE TO ADDRESS THE COUNCIL ON THIS PROPOSED REZONE? NO. OKAY. DO WE HAVE A MOTION? MR. MAYOR? I'M SORRY. I'LL MOVE THAT WE APPROVE THIS ITEM AS PRESENTED BY STAFF. I'LL CLOSE THE PUBLIC HEARING. FORGIVE ME. I'LL SECOND IT. WE HAVE A MOTION BY COUNCILMAN CLOUTIER TO CLOSE THE PUBLIC HEARING AND APPROVE THE ZONING REQUEST FOR STAFF RECOMMENDATION. AND A SECOND BY COUNCILMAN LYNCH. IS THERE ANY DISCUSSION? PLEASE CAST YOUR VOTE. WITH THAT MOTION CARRIES. YOUR REZONE HAS BEEN APPROVED. OUR NEXT ITEM TONIGHT, 26-0521.

[26-0521 Consider/Discuss/Act on a Resolution Authorizing the City Manager to Execute an Agreement with Garver, LLC for Construction Phase Services for the McKinney National Airport Taxiway A Phase II Project (AI2633)]

CONSIDERATION OF A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH GARVER, LLC FOR CONSTRUCTION PHASE SERVICES FOR THE MCKINNEY NATIONAL AIRPORT TAXIWAY, A PHASE TWO PROJECT. MR. CHARLIE, GOOD EVENING, MAYOR, MEMBERS OF COUNCIL. KEN KERLEY, AIRPORT DIRECTOR. YOU ALL MAY RECALL LAST MONTH YOU APPROVED A CONSTRUCTION CONTRACT WITH MARIO SINACOLA FOR TAXIWAY ALPHA PHASE TWO. THIS IS A COMPANION TO THAT AGENDA ITEM.

IT'S BASICALLY CONSTRUCTION. ADMINISTRATION HAS A COUPLE OTHER COMPONENTS TO IT BEING MATERIALS TESTING AND SOME SURVEY WORK. AND AS WELL, THE PROJECT, THIS CONSTRUCTION ADMINISTRATION, AS WELL AS THE CONSTRUCTION PROJECT, PRIMARILY USING GRANT FUNDING THROUGH TXDOT. OUT OF THIS 850,000, I BELIEVE 700 AND ABOUT 718,000 IS GRANT ELIGIBLE AND HAPPY TO ANSWER ANY QUESTIONS, ANY QUESTIONS OR. MR. CHARLIE? NO. OKAY. THIS ITEM DOES NOT HAVE A PUBLIC HEARING. SO IF THERE ARE NO QUESTIONS AND WE WOULD ENTERTAIN A MOTION, I MOVE THAT WE APPROVE THIS ITEM AS PRESENTED BY MR. CHARLIE. I'LL SECOND, WE HAVE A MOTION BY COUNCILMAN JONES TO APPROVE THE ITEM AS PER STAFF RECOMMENDATION, RECOMMENDATION AND A PRESENTATION BY MR. CHARLIE AND A SECOND BY MAYOR PRO TEM FELTUS. PLEASE CAST YOUR VOTE. ALL RIGHT. THAT MOTION CARRIES. MR. CITY MANAGER. SIGN AWAY. YES, SIR.

[PUBLIC COMMENTS regarding matters not on the agenda]

OKAY. ALL RIGHT, MOVING ON. OUR NEXT ITEM WILL BE THE OPPORTUNITY FOR ANYONE IN THE AUDIENCE TO ADDRESS CITY COUNCIL ON NON-AGENDA ITEMS. FIRST SPEAKER IS RICK RAMBEAU.

MAYOR, COUNCIL MEMBERS, THANKS FOR ALLOWING ME TO SPEAK TODAY ON FRAUD IN THE CONSTRUCTION AND PERMIT PROCESS SPECIFICALLY FOR POOL CONSTRUCTION. IT'S WIDELY KNOWN AND DISCUSSED, ESPECIALLY HERE AT THE CITY AND THE NUMEROUS MEETINGS I'VE HAD OVER THE PAST YEAR. THAT POOL BUILDING IS SOME OF THE HIGHEST FRAUD IN THE CONSTRUCTION INDUSTRY. UNFORTUNATELY, I AND TWO OTHER MCKINNEY FAMILIES AND 19 PLUS OTHER FAMILIES IN NORTH TEXAS FELL VICTIM TO A. NOW INDICTED IN LAMAR AND GRAYSON COUNTY. FRAUDSTER NAMED MATT SMITH AND HIS COMPANY, TLC POOLS. HIS PRACTICE WAS TO PARTNER WITH AN ELECTRICIAN, JOSE LAREDO, A MASTER ELECTRICIAN OF AQUA BLUE ELECTRICAL CONTRACTORS, AND PARTNER WITH SCOTT DOBLES, A MASTER PLUMBER OF DOBLE'S PLUMBING. THE SCHEME WAS TO PAY THE PLUMBER AN ELECTRIC FEE, AND THEY WOULD LEND THEIR LICENSE NUMBER FOR THE PERMIT PROCESS, BUT NOT ACTUALLY DO ANY WORK. THE ACTUAL WORK WAS DONE BY MATT SMITH AND HIS ASSIGNEES. THE POOL WOULD BE DUG, THE ELECTRIC WOULD BE RUN, THE PLUMBING WOULD BE RUN, AND THEN THE PARTIES WOULD ABANDON THE PROJECT WITH THE MONIES FROM THE HOMEOWNERS. THE ELECTRIC WAS INSPECTED BY THE CITY OF MCKINNEY AND WAS APPROVED. THE PLUMBING WAS INSPECTED BY MCKINNEY AND WAS ALSO APPROVED, BUT THE WORK WAS NOT DONE BY THE PERMIT CONTRACTOR NOR THEIR REPRESENTATIVES, NOR WAS IT EVEN DONE BY A LICENSED PROFESSIONAL. WHEN I CAUGHT THE FRAUDSTER, SMITH, THE PLUMBER AND THE ELECTRICAL CONTRACTOR GOT CAUGHT TOO. BUT WHAT THEY DID AFTER THEY RECEIVED NOTICE THAT THEY'D BEEN CAUGHT, THEY SENT AN EMAIL TO THE CITY OF MCKINNEY ASKING THAT THEIR NAMES BE REMOVED FROM MY PERMIT. UNFORTUNATELY, MCKINNEY HONORED THEIR REQUEST. MIND YOU, AGAIN, AFTER THE INSPECTIONS WERE ALREADY DONE, THEY ASKED TO HAVE THEIR NAME REMOVED AND THE CITY OF MCKINNEY REMOVED THEIR NAMES FROM THE PERMIT. THEY DID IT MULTIPLE TIMES AND THEY'RE STILL DOING IT. 20 PLUS FAMILIES, OVER 2 MILLION IN FRAUD AND LOSSES. THE CITY OF MCKINNEY DIDN'T EVEN COMMUNICATE TO ME CHANGES ON