McKINNEY, TEXAS (Dec. 7, 2010) — McKinney Mayor Brian Loughmiller announced today the global settlement of the city’s two-year dispute with O&S Holdings, the California developer which defaulted in the development of the hotel/events center and retail complex once known as "Bridge Street" on the McKinney Economic Development Corporation (MEDC) property at U.S. 75 and the Sam Rayburn Tollway (S.H. 121).

The dispute involved a lawsuit over the MEDC termination of the development agreement with O&S at Bridge Street (now called "Gateway") and a related entity's bankruptcy that had stalled the construction of the hotel/events center since fall 2008. Mayor Loughmiller explained that the city and the McKinney Community Development Corporation (MCDC) actually obtained control of the hotel site in November 2010.  

"The city and MCDC successfully implemented a plan which resulted in full ownership of the hotel site and all of the improvements funded by the bankrupt developer. The acquisition process took a lot of time, evaluation and planning to accomplish. We needed assurance that we had full control of the site," said Mayor Loughmiller.  

The mayor explained, “The settlement vests in the city all ownership and control of the entire 90-acre Gateway parcel.”  

The mayor went on to state, “I appreciate the confidence of the city council in our negotiating team that included me along with our MEDC liaison councilmember David Brooks, representatives of the MEDC Board and representatives of our MCDC Board and our legal counsel. The settlement has been ratified by both boards as well as the McKinney City Council as of Dec. 7, 2010.” 

Mayor Loughmiller addressed the project’s future with these remarks. 

“The economy, the U.S. 75 interchange construction and the retail/hotel market have all impacted this project over the last two years. But the McKinney City Council remains fully committed to the Gateway site, and to that end, the city council, MEDC and MCDC will continue to refine the project's plans over the next few months, and when ready, will bring to the citizens details on its scope and when activity will again commence at Gateway. This was a total team effort that will enable us to begin a positive new chapter in the economic development of our city as we continue to move forward on our city council priorities in 2011."  

About McKinney

McKinney, Texas, is unique by nature. As one of the fastest-growing cities in the U.S., McKinney has a current population of more than 127,500. Incorporated in 1848, the city is located 30 miles north of Dallas and is the county seat of Collin County. McKinney offers rolling hills, lush trees, a historic downtown square and unique neighborhoods and developments, and it was recently ranked as the #5 Best Places to Live by Money Magazine. Visit the city’s Web site at www.mckinneytexas.org.