McKinney staff: parkland fees have raised more than $29 million; council weighs reforms

Jenny Baker, the city's parks planning and development manager, told the council the parkland dedication ordinance (adopted in 2022) has two components: a land-dedication requirement and a separate park development fee.

"The parkland dedication is 1 acre for every 37 residential units for both multifamily and single family," Baker said, and added that the park development fee is "a flat 1,400 per unit for single family and 1,600 per unit for multifamily." Baker also reported that, during the most recent fiscal period, the city collected "just over $29,000,000" in parkland deposits and development-fee funds, which staff said materially support the parks capital improvement program.

Baker walked council through built-in reductions in the ordinance (25% off land dedication for certain mixed-use residential; 50% reductions for senior independent living and affordable housing for land dedication, and possible fee credits for developer-installed amenities). Council members pressed staff on how collected cash-in-lieu fees are spent by zone and whether funds collected in dense, built-out zones are used locally or for land acquisition elsewhere in the city.

Staff said the ordinance directs funds collected in a zone to be used in that zone, typically for park renovations or trail expansion projects such as planned miles along Wilson Creek. Baker said the ordinance also vests some projects under the previous rules and noted the city is required to review park development fees every five years, with the next review due in 2027.