McKinney Council Approves Cotton Mill Fee Waiver After Split Vote

By R.J. Morales | TX3DNews

McKINNEY, Texas — The McKinney City Council voted 4-3 Tuesday to approve a roadway impact fee waiver for the Cotton Mill redevelopment, rejecting a staff recommendation that the project did not qualify for the incentive.

The vote allows the project to participate in the city’s Neighborhood Empowerment Zone (NEZ) Impact Fee Waiver Program. Supporters said it will help encourage investment in East McKinney, while opponents argued the city should not shift a private development’s roadway costs onto taxpayers. The request did not change the project’s approved plans; council considered only whether it qualified for fee assistance.

Staff, Developer Offer Different Views

City staff recommended denial, finding the proposed five- and seven-story apartment buildings incompatible with the surrounding neighborhood under the NEZ design guidelines.

“These new multi-family buildings will nearly double the heights of the existing buildings and create a dramatically altered skyline,” Planning Manager Cassie Bumgarner told council members.

Developer Presidium argued the incentive is essential given the high cost of rebuilding aging infrastructure. Josh Eames, the company’s president of development, said Presidium was not asking the city to finance the project but to keep more private investment within the redevelopment.

“We don’t see this as an ask for city funding,” Eames said. “We view this as an ask to let us put more of the private capital that we are intending to bring in directly into the district itself.”

The developer estimates the project will generate more than $575 million in private investment, roughly 2,800 jobs, and $826 million in economic impact over 20 years.

Council Divided Before Vote

Councilman Justin Beller supported the request, saying the incentive was created for redevelopment in areas where investment has historically been difficult.

“Without this type of development, we’re going to continue to see the lack of commercial resources,” Beller said. “We’re going to continue to see the inability to create life back into some of these properties.”

He added, “I do think you’re committed to making this happen. And we should be partners.”

Councilman Patrick Cloutier said he supports redevelopment but questioned whether a private project’s roadway costs should fall on the public.

“Should that be on the taxpayer in McKinney to pay that, or should it be on the developer?” Cloutier asked. “To me it can’t be on the taxpayer right now.”

Other Council Business

The council unanimously approved a 4% housing tax credit application for the rehabilitation of the 232-unit Skyway Villas Apartments, a roughly $22 million project staff said would preserve affordability for at least 30 years. Members also approved amendments to Tax Increment Reinvestment Zone No. 1, a specific use permit for an Enterprise Rent-A-Car on James Pitts Drive, annexation and zoning of about 56 acres near County Road 317, and a commercial rezoning near West Grove. Two zoning items were tabled.

Residents Raise Concerns

Residents raised concerns about post-Fourth of July traffic and homelessness during the summer heat. Several also opposed a proposed Islamic community center near Virginia Parkway, citing traffic, parking and emergency access; because it was not on the agenda, the council took no action.

Paul Ballesteros, founder of Emmanuel Labor, urged the city to expand cooling resources after describing the recent death of a man he had known for years.

“My heart is, why isn’t one enough?” Ballesteros said. “Philip was an amazing person.”

Lite-On Campus Caps Landmark Month for McKinney

Before adjourning, City Manager Paul Grimes highlighted Taiwan-based Lite-On Technology’s decision to build a new North American manufacturing and research campus in McKinney — a project officials have called one of the largest private investments in the city’s history.

Announced earlier this month alongside Gov. Greg Abbott, the campus represents an investment of up to $919 million and is expected to create more than 600 jobs in engineering, advanced manufacturing and corporate operations. Rather than building new, Lite-On is repurposing existing industrial space within the Core5 Logistics Center in north McKinney, with a first phase of $307 million tied to the initial 500 jobs.

The site, spanning more than 650,000 square feet, will manufacture power management and AI infrastructure products and serve as the U.S. subsidiary’s headquarters. The state provided a $3.5 million Texas Enterprise Fund grant to help land the project, which joins major McKinney employers such as Globe Life, Encore Wire and RTX.