Initiative commits $150 million to $300 million to roadways through 2035, depending on sales tax performance
McKINNEY, Texas (June 29, 2022) – The City of McKinney, the McKinney Economic Development Corporation (MEDC), and the McKinney Community Development Corporation (MCDC) announced a new initiative to commit sales tax dollars to invest in new roadway infrastructure through 2035. The announcement follows the adoption of a resolution at the June 21 City Council meeting, and comes amid McKinney’s continued rapid growth and the mutually-recognized need for more arterial roadways that connect commercial and business corridors in the community. Under Texas law, construction of public infrastructure, such as streets and roads, is one of the intended uses of Type A (MEDC) and Type B (MCDC) corporation sales tax revenues for promoting new and expanded businesses in McKinney.
“Since 2002, the city has invested nearly $320 million in new road infrastructure and more than $112 million in roadway maintenance and reconstruction. With the rapid growth of our city and the need for expanded roadways, this commitment by MEDC and MCDC will greatly aid our effort to invest in our community’s future public infrastructure,” Mayor George Fuller said. “This will send a strong signal to the business and investment community that McKinney takes infrastructure seriously and will do so for years to come.”
The contributions by MEDC, MCDC, and the city will range from $150 million to $300 million through 2035, depending on sales tax performance. For example, an average of 5% in sales tax growth year over year would result in $112 million for this program combined from MEDC and MCDC through 2035, in addition to the over $200 million estimated from the city over the same time period. An average of 8% in sales tax growth would change the MEDC/MCDC number to about $187 million. That would then be added to the city’s capital improvement program to augment roadway infrastructure investment targeted toward business development.
“Continually improving the quality of life in McKinney is critical for attracting new businesses and providing a vibrant community for our residents,” MEDC Board President Michael Jones said. “The dedication of Type A & B sales tax dollars for road infrastructure improvements around McKinney will aid in ensuring that we maintain the highest standards of quality in all aspects of economic development in our community.”
“Our roadways are the critical connectors for McKinney’s current and future businesses, as well as their employees and customers. Keeping them in quality condition maintains McKinney as a city of choice,” said MCDC Board Chair Angela Richardson Woods.
MEDC, MCDC, and the city have a proven history of working together for good, as highlighted by the success of the AT&T Byron Nelson tournament.
“The combination of investment among all three entities is a game-changer for how we can fund our roadway infrastructure,” City Manager Paul Grimes said. “We can use these dollars to leverage state and federal funds and partner with the county’s initiative for expanding arterial roadways.”