Updated September 2020
Southgate McKinney is one of the most visible development sites in McKinney located at the heavily-traveled interchange of the Sam Rayburn Tollway and U.S. 75. Collin College was the first occupant at Southgate when they opened the Higher Education Center. Emerson Process Management followed by moving the world headquarters of its Regulator Technologies business to the Southgate site and Sheraton Hotel and Conference Center opened soon after. These anchor properties occupy approximately 33 acres of the 90-acre site. The approximately 57 acres surrounding these anchor owner sites is intended to be a mixed-use development including restaurants and office space. The City of McKinney and the McKinney Economic Development Corporation (MEDC) are working with a team led by KDC for the development of the Southgate McKinney.
Frequently asked questions regarding the Southgate development
1. When did the Southgate project begin?
MEDC purchased the original 65 acres now known as the Southgate development in 2000 to initiate a retail / office development project. Two additional parcels of 17 acres and 10 acres were also acquired several years later.
2. Why did the city initially begin this project and what were its original goals?
The city aimed to create a master planned development area to facilitate the attraction of retail / office development.
3. What does the city own on the site?
The city has retained ownership of two small parcels located near Collin College, but the majority of the acreage within the Southgate development site is owned by MEDC.
4. Has the completed Sheraton Hotel and Conference Center spurred interest in the site?
The Sheraton Hotel and Conference Center has created an important amenity that will help attract business development to the site, particularly office development. Some developers have specifically stated the addition of the Sheraton to the site has made the area more attractive for development. Moreover, the hotel is doing very well; since opening in February 2015, the city’s share of monthly hotel tax receipts generated from the Sheraton have increased from $10,472 to $30,171, for a cumulative total of $528,000.
5. How is owning the Southgate site a benefit to the city?
The Southgate site will become a major employment center when it’s built out. It will attract development that will generate tax base and returns on public investment and create a signature gateway that will serve as a source of community pride while conveying an urban vibrancy and high quality. The site will also catalyze complimentary uses and amenities.
6. How does development of the Southgate site benefit the city?
MEDC’s ownership of the site and commitment to a set of guiding principles will help ensure that the development of the Southgate site will optimize community as well as financial benefits.
7. Will economic incentives be offered to developers of the Southgate site?
MEDC is open to negotiation with a developer. MEDC and the city are both careful to tie any incentives to a specific policy objective that is consistent with the stated guiding principles.
8. What is the timeline for development of the site?
This will be driven by market conditions and land uses as they become defined and refined. MEDC is aggressively marketing the site for development.