McKinney expands TIRZ No. 1 for east-side redevelopment

McKinney City Council approved an ordinance amending Tax Increment Reinvestment Zone (TIRZ) No. 1 boundaries, adding land described in reporting as about 15.7 acres and described in the ordinance as approximately 16 acres for an east McKinney redevelopment focus.

The adopted change matters because future property-value increases generated on parcels inside the expanded TIRZ boundary can be steered into the TIRZ’s restricted reinvestment categories—rather than flowing into general ad valorem tax revenue without those district limits.

What happened on June 16

At its June 16, 2026 meeting, the council adopted an ordinance amending Ordinance No. 2010-09-034 to adjust the boundaries and size of TIRZ No. 1. The ordinance says it adds approximately 16 acres, and that TIRZ No. 1 would then consist of approximately 980 acres.

Community Impact reported that council members voted 6-1 in favor of the boundary expansion during that June 16 meeting.

According to the ordinance, it becomes effective immediately upon passage.

Plain-English refresher: why a TIRZ boundary line can change what taxpayers fund

A TIRZ is a tax-increment district: as assessed property values rise inside the district, the additional “increment” can be used for projects and expenditures that fit within the TIRZ’s approved project plan.

In the Legistar packet for this boundary change, city staff explained the basic tradeoff for the added land area: if the boundary is expanded, increases in taxable valuation on the included property contribute to the TIRZ fund balance and then become restricted to eligible project categories and expenditures under the TIRZ No. 1 project plan. If the area were not included, valuation increases would contribute to general ad valorem tax revenue and remain unrestricted in the general fund.

What it could mean for future multifamily—without approving a project by itself

Expanding a TIRZ boundary does not automatically approve any specific multifamily site or building. Instead, it can affect future redevelopment feasibility by determining whether future tax-increment growth from parcels in the area falls inside a district with defined reinvestment categories.

McKinney’s TIRZ No. 1 Fourth Amended Project Plan lays out eligible project categories. One of those categories is Mixed-Income/Affordable Housing Projects, which the plan describes as funding to encourage and assist in creating new affordable, workforce and mixed-income housing.

Community Impact also described the boundary expansion as tied to a future multifamily development effort in east McKinney. Even so, residents should treat this as an enabling financing pathway, not a timetable or a guarantee that a particular multifamily project will be built.

What to watch next

After a boundary expansion, the key follow-ons tend to be implementation details: how the city and TIRZ operationalize the project plan categories and whether future redevelopment proposals publicly reference TIRZ No. 1 eligibility for specific infrastructure or redevelopment steps.

If you live near the expanded area—or you’re a renter, homeowner, or business owner tracking east McKinney growth—watch for any next public discussions or filings that tie specific improvements or redevelopment proposals back to TIRZ No. 1’s approved categories.

Sources

• City of McKinney Legistar (File 26-0584): TIRZ 1 Boundary Expansion Request
• Community Impact McKinney (June 22, 2026): vote details and east McKinney redevelopment framing
• TIRZ No. 1 Fourth Amended Project Plan (July 1, 2025)