MCDC leaves public hearing open on Sanchez Charities request to expand 'NeighborHub' funding

The McKinney Community Development Corporation left open a public hearing on a request from Sanchez Charities to amend a prior project award and increase the CDC grant from $517,192 to $1,717,192 to support horizontal infrastructure for an expanded neighborhood resource center.

Sanchez Charities founder Kim Sanchez described the proposal as a “resource advocacy center” for the working poor and people “one paycheck away from a disaster,” and said the project is not intended to be a homeless shelter or overnight center. She said the project’s scope has grown from a 0.5-acre, 10,000-square-foot concept to a 3-acre site that could include a 35,000–45,000-square-foot facility to house multiple nonprofit tenants, case management, a client-choice pantry and shared services. Dave Waityard, CEO of Catholic Charities McKinney, told the board Catholic Charities would serve as the long-term owner and operator and expects to raise $6–7 million for building construction.

Board members and members of the public praised the concept but requested more detail before the CDC moved to approve additional funds. Concerns discussed included previous messaging that some residents said suggested the site would primarily serve unhoused people, proximity to a school and daycare, the need for construction bids rather than an opinion of probable cost, the precise contract path if Catholic Charities becomes the formal owner, and whether the current fiscal year budget would require a fund-balance amendment if the CDC approved the amendment immediately.

Sanchez said the organization has not spent any of the earlier $517,192 award but has used that award to leverage partners and agreements (Grace Presbyterian has provided a benevolent land contract and shared-parking easement). Sanchez also said her group will donate its half-acre and provide pro bono engineering work that she estimates at $100,000–$150,000 in value.

Board members suggested practical next steps: confirm whether the grant should transfer to Catholic Charities as the applicant or remain in Sanchez Charities’ name; obtain competitive construction bids or multiple firm estimates; and, given timing and possible budget implications, consider moving the item to an October meeting to allow staff to confirm whether the 2025 budget or a budget amendment would be needed. Several board members said a short delay would not harm fundraising and could provide the clarity staff needs to structure any grant agreement.

Because of those outstanding logistics and the possibility that a formal grant agreement may need to be executed with Catholic Charities rather than Sanchez Charities, the CDC did not vote to increase the award. The public hearing for the Sanchez Charities amendment remained open and the item will return to the board for further consideration.

The public record included multiple supporters who emphasized local need and nonprofit collaboration, and a handful of nearby residents and board members who asked for more detail on operations, tenant rents and construction procurement.

If the board later approves the amendment, staff said any CDC reimbursement would be by invoice only for eligible horizontal infrastructure costs and would be subject to standard grant terms, including the possibility of clawback language if conditions (for example, public-access commitments) are not met.

Next steps noted by staff: clarify which entity will be the formal grant recipient, obtain additional budget and procurement detail (including contractor bids or multiple competitive estimates), resolve questions about timing and whether Council action or a budget amendment is required, and return the item for board action.