McKinney to consider Municipal Management District agreement for Honey Creek development

McKinney Courier-Gazzette
By Audrey Henvey | Star Local Media
December 9, 2022

The city of McKinney is exploring the possibility of entering into an agreement that would create a Municipal Management District for the Honey Creek Development.

The development, located west of US 75 and adjacent to a future US 380 bypass, could have a potential $2 billion in assessed value and is slated to include a mix of uses including residential and commercial, according to a presentation from Republic Property Group.

The development was the subject of discussions during a McKinney City Council work session on Tuesday. Jake Wagner, co-CEO and partner with Republic Property Group, presented a proposal for the creation of a Municipal Management District (MMD).

“It’s really the same purpose and intent of any district, whether it’s in your PID (Public Improvement District) policy or otherwise, it’s funding very expensive infrastructure and enhancements that really make the place come alive,” Wagner said.

The district purposes and controls would be similar to that of a Public Improvement District, with a levy of assessments financing qualified improvements.

According to Wagner’s presentation, the Texas Legislature would be the official creating body for the district, but district creation would require city support per a development agreement that would state controls and limitations up front. The district would issue bonds and levies and collect assessments while the city maintains control through the development agreement. However, the city would not be the bond issuer, which would provide insulation from liability or default, the presentation states.

With the next legislative session beginning in January and going through June, Wagner said the first step is to receive formal consent from the city in order to start the process for requesting MDD at the legislature. After that, legislation would be proposed to the state, and a zoning application and development agreement would be sent to the city for consideration.

“At that point that opens the window for us to work together on those two things,” Wagner said, adding that the legislative session ends in June. “I think we could likely have a zoning and development agreement in place with you all over that period of time, (…) but if we didn’t, that district’s never effective until your requirements are satisfied, so it would just dissolve over a period of time if we couldn’t get there,” he said.

Michael Quint, development services director with the city, said the discussion Tuesday was informational. Looking ahead, the city council will have an item on the Dec. 20 meeting agenda for a consent resolution, allowing the council to give consent to RPG to take action in Austin to get a bill created that would authorize the MMD.

“All you’re doing through this consent resolution is buying more time to explore a development agreement, annexation and zoning,” Quint said.