McKINNEY, Texas — The McKinney City Council on Oct. 5 approved an agreement that commits up to $6 million in city money toward roads and water and sewer lines for a planned light industrial project on about 62 acres in the city's northeast.
The resolution authorizes the city manager to sign an annexation facilities and developer participation agreement with Provident Realty Acquisitions III LLC, according to city records. The property sits east of State Highway 5 and south of State Highway 121.
How the cost share works
Under the agreement, the city will pay up to 30% of the actual cost of eligible public infrastructure, with total city participation capped at $6 million, according to the staff summary.
Eligible improvements include certain 12-inch and 16-inch water lines, a 12-inch sanitary sewer line, and improvements to County Road 339 and Fannin Road. Provident will design and build the improvements.
The city's share will be reduced by a one-time $200,000 credit tied to expected waterline flushing and sewer inspection and cleaning in the first years after construction, when demand is expected to be low. The agreement describes the credit as covering five years of water and sewer maintenance.
Staff created a capital project to fund the agreement using $6 million in existing budgeted funds.
Annexation and zoning
The land is currently in McKinney's extraterritorial jurisdiction, outside city limits. Provident has asked to be voluntarily annexed and must complete annexation and zoning by Jan. 29, 2027, under the agreement.
The agreement sets development rules for the property, which is proposed for an industrial warehouse project. Final infrastructure requirements and road alignments will be set through the city's engineering and development review process.
Wider reach
City staff said the water and sewer extensions will also bring city utilities into the northern part of the State Highway 5 corridor. That could support other light industrial development along the corridor and commercial and retail development along State Highway 121 near Melissa.
The agreement also includes a land swap. The city will trade about 0.83 acres of city-owned land for about 2.19 acres of Provident land needed for the future County Road 339 alignment. Provident will convey its land to the city at no cost.
Staff recommended approval. City records list the resolution as approved, with final action on Oct. 5.