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Tax Increment Reinvestment Zone Number One Board

Gas Tanks Found, Full Funding Approved, TIRZ Board Backs Downtown Church Cleanup

McKinney’s Tax Increment Reinvestment Zone Number One board met May 5, 2026, to review how the downtown funding district performed last year and to decide whether to help cover a major cleanup tied to a church project near Davis and Tennessee. The discussion centered on money already coming into the district, money already committed, and how far the board should go when unexpected costs hit downtown redevelopment.

TIRZ Revenue Climbed In 2025

Assistant Finance Director Chance Miller told the board TIRZ No. 1 brought in $6.5 million in 2025 from property and sales taxes, up from $5.7 million the year before. Interest income added more than $1.2 million. The district ended 2025 with a fund balance of $28.2 million, though nearly $3 million of that is set aside for transportation through Collin County contributions.

Downtown Values And Sales Outpaced The Rest Of The City

Staff reported taxable property value in the TIRZ reached $918 million, a $126 million jump from the prior year. Sales tax collections in the zone also rose to $4.4 million, up 6%. Both increases ran ahead of citywide growth, showing downtown is still pulling in more value and more spending than the broader city average.

Bond Debt Still On The Books

Miller said the district still has $15.5 million left on its bond debt. For 2026, the plan includes $300,000 in principal payments and $676,000 in interest. That means a sizable share of TIRZ money is still tied up in past commitments even as new requests keep arriving.

Staff Flagged Less Uncommitted Money Ahead

When board members asked how much money is really available, staff said projections show the district could end 2026 closer to $22 million, with a little more than $3 million still restricted for transportation. That leaves about $19 million before counting projects already in the pipeline, a reminder that the fund is healthy but not unlimited.

Parks Church Asked For Help With Tank Cleanup

The biggest vote of the night involved Parks Church and its downtown project at the northeast corner of Davis and Tennessee. Planning Manager Cassie Bumgarner said the site had been approved for development in 2023. The original plan was to keep two historic buildings, but structural concerns led to demolition. During excavation, crews found underground gas tanks, triggering environmental cleanup work.

Staff Said Eligible Costs Reached More Than $453,000

Bumgarner said staff reviewed invoices line by line and found up to $453,439.57 in eligible TIRZ environmental remediation costs. The request came after the work was already done, so staff did not have multiple bids to compare, only invoices. That became a key point in the debate as board members weighed how to handle a large reimbursement request after the fact.

Staff Recommended Only $5,000 Under Current Guidelines

Even with the larger eligible total, staff recommended awarding just $5,000 because that is the amount allowed by current funding guidelines for environmental remediation. Staff said approving the full request would require a budget amendment at a future meeting and then City Council approval. That raised a broader question about whether current rules match the kinds of surprises showing up in older downtown sites.

Church Argued Cleanup Served The Whole Area