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'Innovation Village' Plan Presented to Mckinney Officials

8/12/2014

URL: http://starlocalmedia.com/mckinneycouriergazette/news/innovation-village-plan-presented-to-mckinney-officials/article_222fdde2-2277-11e4-9599-001a4bcf887a.html

Posted: Tuesday, August 12, 2014 6:19 pm Chris Beattie, cbeattie@starlocalmedia.com | 1 comment

McKinney city officials last week got an early look at what’s been termed “Innovation Village,” a proposed mixed-use development just south of the downtown square.

Palladium USA, the developer, presented its initial concept plan for the project, which would sit on the southwest corner of State Highway 5 and Davis Street. Chestnut Square Historic Village is at the southeast corner of the roughly 9.2-acre site.

Palladium officials said the proposed project would likely cost about $75 million, and plan to fund it through a public-private partnership.

Jason Adams, CEO of Curious Complex and anchor tenant of the existing Collide Center business incubator, and others came up with the plan and identified potential investment and development partners over a 120-day period. Adams and Palladium officials presented the plan to the City Council on Aug. 4.

“We’ve got something pretty exciting planned for this site,” Tom Huth, Palladium USA president and CEO, told the council. “Not only is it exciting, it’s doable.”

The plan entails four phases of development to include office space, retail, residential and structured parking. A six-story, 76,000-square-foot office building would anchor the center of the site, with about 254 surface parking spaces along Davis and SH 5 to support it until parking garages are built.

Phase I includes two retail sites and a public park with an amphitheater. Phase II features 140 apartment units and the first of two parking garages (321 spaces) at the corner of Tennessee and Anthony streets. Phase III includes 144 apartment homes, another parking garage (332 spaces) and 6,000 square feet of retail at the corner of Davis Street and SH 5.

The final phase includes 20 apartment units with two-car garages along Davis Street and 16 for-sale townhomes along Anthony Street. Sales from the lots would go towards reimbursement to the city for its contributions.

In total, the proposed development features 76,000 square feet of office space, buildings ranging from one to six stories, 21,000 square feet of restaurant and retail, 304 multi-family for-rent units, 653 structured parking spaces and 88 surface spaces.

Developers’ vision is to “create cutting edge office space in the downtown district as a destination for high-tech companies, innovative start-ups, and passionate entrepreneurs,” according to the presentation. Adams told the council they have a soft commitment from a global-impacting technology company that would be the anchor tenant and “a big win for the city of McKinney.”

Officials said the city would be responsible for “bite-sized” contributions, but at this point have only cost estimates. The city’s portion would include tax abatements, infrastructure improvement and fee waivers; it would help pay for road enhancement, the parking garages and the park – all of which developers expect to cost between $8 million and $13 million.

“I think the return on the investment for the city on this is going to be huge,” Huth said.

Council members expressed their appreciation of the concept plan, but plan to ensure the development’s architecture fits the historic district. The development team will work with city staff in coming weeks to determine more exact costs and a definitive agreement set to come before the council by early September.

“This is a product for the future,” Huth said. “We can take this 9.2 acres and turn it into something fantastic.”

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