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McKinney CDC conditionally approves $1.72 million grant increase for neighborhood services hub
Summary
After public comment and extended discussion, the McKinney Community Development Corporation approved increasing a previously awarded infrastructure grant for the Neighborhood Hub from $517,192 to $1,717,192, contingent on a transfer of the project and land to Catholic Charities of Dallas and completion of related documentation and conditions.
The McKinney Community Development Corporation voted to approve an increase in its grant award for the Neighborhood Hub project to $1,717,192, with the approval contingent on a documented transfer of the project (including the land agreement) to Catholic Charities of Dallas and fulfillment of agreed contract conditions.
The item — an amendment to project 4B-24-15 originally awarded to Sanchez Charities LLC — was the subject of a public hearing that the board left open at the prior meeting and reopened for comment. Two speakers during public comment voiced support for the project. Brent Driggs, communications director for The Church of Jesus Christ of Latter-day Saints, said the hub “is a perfect project to accentuate and continue to build on the culture and the heart and soul of McKinney.” Resident Leslie Vestal urged the board to approve the request and called the hub “a coordinated care with dignity, critical services under one roof.”
Board members and staff spent more than an hour discussing program scope, property use and legal transfers. Multiple board members said they support the hub but requested firm contractual steps before funds are drawn. The applicants and partner organizations told the board they have an executed memorandum of understanding and are negotiating formal legal transfer documents. A representative of Sanchez Charities said the MOU is in place and that final legal documents are being prepared to address concerns about long-term stewardship and protection of financial investments by partner agencies.
Catholic Charities of Dallas, proposed as an additional eligible grant recipient and primary operator, confirmed its intention to make the hub a community resource rather than a sole office. A Catholic Charities representative said the project’s second-floor space is intended to be used by rotating nonprofit partners and “is really for the whole community. We would not build the Second Floor but for the others.”
Board members raised three principal concerns before approving the supplemental funding: (1) a formalized transfer of the grant/land expectation from Sanchez Charities to Catholic Charities, (2) clarity on the half-acre site initially included for parking and whether MCDC funds should be used to pay for parking-area infrastructure rather than future expansion, and (3) follow-up on competitive construction bidding (multiple bids) once construction documents are complete. Several members said they were comfortable approving the amended award now as long as the board’s conditions are explicit and made part of the funding agreement.
The board’s motion approved the $1,717,192 award “contingent on the transfer to Catholic Charities” and related documentation. The motion was seconded and passed; the transcript does not record a roll-call tally. Board members and applicants agreed to return the finalized legal documents and bid documentation to MCDC staff for inclusion in the grant agreement before any drawdowns.
MCDC staff noted the requested amount represents about 14.55% of the applicants’ stated total project cost in their materials; applicants said the effective project cost is lower than a typical development because Grace Presbytery provided discounted land and shared parking arrangements. Applicants also reported they had invested in site planning, early engineering and an opinion of probable cost; they said that work was provided at low or no cost by partners and that those documents form the basis of the $1,717,192 estimate.
The board discussed timing and potential effects on fundraising. Applicants said a firm MCDC commitment is helpful to leverage other foundation and local matching funds, and one applicant reported a recent conditional award from the Lyda Hill Foundation that depends in part on matching funds and momentum. Several board members said a 30- to 45-day delay would be acceptable if the board needed a short window to produce a written list of required conditions, but the final motion approved the amendment that includes the transfer contingency. The board also confirmed the previously approved $517,192 remains in force and that the additional funding would be administered under standard MCDC reimbursement and performance terms.
The project will proceed to final legal documentation and, as required by the motion, the transfer of title/grant-applicant status must be evidenced before drawdown. The board and applicants identified the following next steps: finalize the transfer documentation among Grace Presbytery, Sanchez Charities and Catholic Charities of Dallas; obtain competitive construction bids once CDs are complete; and incorporate specified contingencies into the MCDC funding agreement.
The board’s action followed a public hearing that included supportive statements from faith and resident groups and an extended internal review of project scope, funding leverage and legal protections. The full project description in the agenda calls for a 35,000–45,000-square-foot facility on a three-acre site at 2000 West White Avenue to provide coordinated nonprofit services; the MCDC award is intended to pay for horizontal infrastructure to support the site.
