McKinney CDC holds public hearing on amended JW Marriott resort request; repayment of city loan remains unresolved

The McKinney Community Development Corporation on Thursday held a public hearing on an amended incentive package for a proposed JW Marriott luxury resort at Craig Ranch that requests a $25 million grant and a $10.25 million loan from MCDC to support a $325 million development. Developers and city officials described the project and left an outstanding question over whether condominium-sale proceeds should be required to repay the subordinate city loan.

The request was presented by Richard Stockton of Ashford Inc. and David Craig of Craig Ranch Luxury Hotel SPE. Stockton said the project would include approximately 290 hotel rooms, 48 condominium residences above the hotel, more than 50,000 square feet of meeting and convention space, a water-park-style amenity with a lazy river, a standalone restaurant, and about 600 parking spaces. Stockton estimated total project costs at $325,000,000 and said the development would rely on an incentive package that includes the MCDC grant and loan, a $2,000,000 EDC infrastructure grant, a Chapter 380 tax-rebate agreement with the city estimated at about $18,000,000 over 12 years, and a planned application to the state for roughly $30,000,000 in tax rebates over 10 years.

Why it matters: The project would add a large luxury lodging and meeting facility near Craig Ranch Golf Club, a development Stockton and Craig said would increase visitor capacity for conventions, tournaments and other events and produce recurring tax revenue. The scale of public incentives and the loan’s repayment triggers prompted detailed legal and financial questions from the board and city attorney.

Details presented and financing structure Stockton said the financing plan calls for a $210,000,000 senior construction loan, with the MCDC subordinate loan of $10,250,000 to be funded at construction commencement and repaid on a refinancing or sale event or after an agreed term. He described the $25,000,000 MCDC grant as payable at certificate of occupancy. Stockton said Marriott International will contribute “key money” and that Ashford Inc., Craig Ranch interests and an equity partner (Horizon Capital) will supply the equity portion. The team projected an opening by April 30, 2029, with a construction commencement deadline of Dec. 31, 2026.

Outstanding repayment question David Craig and the project legal team said the only unresolved negotiating point was the formal trigger for repayment of the MCDC subordinate loan. Mark Hauser, the city attorney, said the draft term sheet contemplates repayment on sale of the hotel, on a second refinance of the senior loan, or at the end of an eight-year term. Hauser said the outstanding issue centered on proceeds from condominium sales and whether those proceeds should be required to pay down the MCDC loan early.

"Requiring repayment once the hotel begins operation goes against the spirit of the loan," David Craig told the board, arguing the MCDC loan was intended to remain in place until a sale or refinance rather than be repaid immediately from condo- sale distributions. Hauser replied that the board must decide whether it is fair to have equity distributions go out while the subordinate loan remains in place, noting condominium closings are likely to occur in the early years after completion.

Board process and next steps Board members asked for more legal and financial clarity and requested a closed-session discussion; the public hearing was then closed by a board motion. No vote on the loan or grant award occurred at the meeting. Board members and staff said they will continue negotiation and return to the public process with a finalized term sheet and recommended action.

What was not decided or confirmed The board did not approve the grant or loan. There was no vote on final terms for condominium proceeds, no certification that state incentives will be approved, and no final lender or equity commitments were presented. Stockton and Craig said conditional letters of financing and equity commitments were in process.

Context and local connections Project proponents and city staff framed the resort as complementary to the city’s other large venues and tourism assets, including the Byron Nelson tournament, the newly announced Venue Amphitheater, the Canopy Surf Park concept and McKinney National Airport expansion. Stockton said the project would, in models reviewed by the developer and city consultants, add more than $2.5 million annually in tax revenue to the city once operating.

Board action at the meeting The board closed the public hearing on the amended application following public comment and internal discussion. The project’s outstanding term-sheet question about condominium-sale proceeds and repayment timing was identified as the single remaining negotiation point and was referred for further discussion in closed session.

Quotes "The intention of the deal and what is corroborated by the financial model reviewed by the city and its consultants is that the MCDC loan is repaid upon a sale of the hotel or upon the second refinancing of the senior construction loan," David Craig said during public comment.

"The issue that is outstanding is really about what triggers a repayment event," Mark Hauser, city attorney, told the board.

Ending note Developers and city staff said they expect to return with additional legal language and financing confirmations; the board did not vote on incentives at Thursday’s meeting and left the matter open for further negotiation.