The City of McKinney and the McKinney Economic Development Corporation (MEDC) approved a Memo of Understanding in April with a development team led by KDC for the development of the Gateway site located at the interchange of the Sam Rayburn Tollway and U.S. 75.
The Memo of Understanding lays the groundwork for the project to move forward with the creation of preliminary site design concepts and direct marketing activities by the KDC team, which would take place at the same time as the formation of the Master Development Agreement. According to the Memo of Understanding, the design phase marketing materials will be complete by June and the Master Development Agreement will be executed by October.
Located at what many refer to as the “gateway” to McKinney, the Gateway site is one of the most visible development sites in McKinney located at the heavily-traveled interchange of the Sam Rayburn Tollway and U.S. 75. Collin College was the first occupant at Gateway, opening the Higher Education Center in January 2010. Emerson Process Management followed by moving the world headquarters of its Regulator Technologies business to the Gateway site in 2013. The Sheraton Hotel and Conference Center opened at Gateway in February 2015. These anchor properties occupy approximately 33 acres of the 90-acre site. The approximately 57 acres surrounding these anchor owner sites is intended to be a mixed-use development including restaurants and office space.
Frequently asked questions regarding the Gateway development
When did the Gateway project begin?
MEDC purchased the original 65 acres now known as the Gateway development in 2000 to initiate a retail / office development project. Two additional parcels of 17 acres and 10 acres were also acquired several years later.
Why did the city initially begin this project and what were its original goals?
The city aimed to create a master planned development area to facilitate the attraction of retail / office development.
What does the city own on the site?
The city has retained ownership of two small parcels located near Collin College, but the majority of the acreage within the Gateway development site is owned by MEDC. The McKinney Community Development Corporation (MCDC) also has some ownership in the facility conference center.
Has the completed Sheraton Hotel and Conference Center spurred interest in the site?
The Sheraton Hotel and Conference Center has created an important amenity that will help attract business development to the site, particularly office development. Some developers have specifically stated the addition of the Sheraton to the site has made the area more attractive for development. Moreover, the hotel is doing very well; since opening in February 2015, the city’s share of monthly hotel tax receipts generated from the Sheraton have increased from $10,472 to $30,171, for a cumulative total of $528,000.
ow is owning the Gateway site a benefit to the city?
The Gateway site will become a major employment center when it’s built out. It will attract development that will generate tax base and returns on public investment and create a signature gateway that will serve as a source of community pride while conveying an urban vibrancy and high quality. The site will also catalyze complimentary uses and amenities.
How does development of the Gateway site benefit the city?
MEDC’s ownership of the site and commitment to a set of guiding principles will help ensure that the development of the Gateway site will optimize community as well as financial benefits.
Will economic incentives be offered to developers of the Gateway site?
MEDC is open to negotiation with a developer. MEDC and the city are both careful to tie any incentives to a specific policy objective that is consistent with the stated guiding principles.
What is the timeline for development of the site?
This will be driven by market conditions and land uses as they become defined and refined. MEDC and the city hope to reach a development agreement later this year.