McKinney to pause Lower 5 Plaza after $15M federal grant rescinded; staff recommends redirecting COG funds to crossings

Tracy Lund, assistant director of engineering, briefed the council at the Sept. 16 work session that the U.S. Department of Transportation rescinded a $15 million Reconnecting Communities and Neighborhoods grant for the Lower 5 Plaza project and that staff recommends pausing work on the plaza and redirecting funds to other Highway 5 corridor improvements.

Lund said the project originally had $45 million in total funding. She summarized the funding as $22,650,000 from the North Central Texas Council of Governments (COG), $15,000,000 from the Reconnecting Communities federal grant (rescinded), $4,000,000 described in staff materials as "tech stock" funding, and $3.35 million in local city funds. Lund said roughly $13,800,000 of the $45 million was TxDOT's portion (engineering and bridge construction) and about $31,200,000 was the city's portion for the plaza infrastructure, amenities and utilities.

With the $15 million federal grant gone, Lund told the work session that staff's recommendation "is to stop work on the Lower 5 Plaza project and redirect efforts to redirect the remaining $22,650,000 of COG funding to other improvements on the Highway 5 Corridor." Lund listed proposed alternatives that would be pursued with COG funding and coordination with TxDOT: enhanced at‑grade crossing improvements at Virginia and Louisiana streets and rapid rectangular flashing beacon (RRFB) pedestrian crossings at eight locations along the corridor, among other pedestrian and grade‑crossing enhancements.

Lund reviewed public engagement results: a July 30 public meeting at City Hall drew about 125 in‑person attendees and the online survey produced 603 total responses. More than 75% of respondents were McKinney residents, and more than 40% said they would visit Lower 5 Plaza a few times a month or on weekends. Survey respondents prioritized family activities, amphitheater seating and stage, flexible open space, art and educational elements. Of the respondents who provided additional comments, Lund said more than a third offered open responses; roughly 30% of those comments expressed opposition to the project and about 15% raised concerns about homelessness.

Lund said staff would place a resolution on the regular session agenda that formally directs staff to stop work on the plaza and begin coordination with TxDOT and COG to incorporate the proposed grade‑crossing and pedestrian improvements into TxDOT plans and to pursue COG funding for those elements. Lund said the enhanced crossing improvements and additional pedestrian crossings would require agreement with TxDOT to incorporate them into TxDOT's project plans.

A council member asked whether the staff recommendation would require property acquisitions or immediate use of eminent domain between Louisiana and Virginia; Lund replied, "That is correct," when asked whether the current plan does not anticipate acquisitions, and added that the schematics shown were conceptual and staff was "not looking at doing right away acquisitions." Lund said the next step, assuming council approval of the resolution on the regular agenda, would be coordination with TxDOT and COG to secure design and funding for the alternate improvements.

Votes at a glance: the work session concluded with a motion to adjourn the work session. Councilman Felter moved to adjourn; Councilman Jones seconded. Council conducted a voice/hand vote; the motion carried and the council adjourned the work session to executive session (regular meeting to begin at 6 p.m.).