McKinney City Council members unanimously approved a budget amendment and construction contract to facilitate the project at a June 3 meeting.
The details
The 500,000-gallon water tower, located at the northeast corner of South Chestnut Street and Davis Street, was a part of the city’s water distribution system beginning in 1953 until 2003. In addition to contributing to the area’s skyline, the tank now serves as an elevated structure with attached cellular antenna equipment.
Design work on the restoration project began in March 2023, Director of Engineering Gary Graham said at a June 3 meeting of the Tax Increment Reinvestment Zone No. 1 board. Graham said the project includes:
- Structural repairs
- Removal of lead paint, remediation and repainting
- LED lighting
- Site improvements such as landscaping, irrigation and paving
City Manager Paul Grimes said that due to the mitigation required for the structure, including removal of lead paint, action will need to be taken on the elevated water tank, whether it is rehabilitation or demolition.
Diving in deeper
When city officials published a project bid for the rehabilitation initiative in July 2024, no bids were submitted, Graham said. Subsequent requests for bids were published in September 2024 and in May 2025, with both only receiving one bid from the same company, Blastco Texas Inc.
The city’s engineer initially estimated the project to cost $2.63 million, the presentation stated. The Blastco Texas Inc. bid submitted in 2024 priced the project at nearly $5 million, while the bid submitted in 2025 was quoted at just under $4 million.
“From our discussions with the different tank companies ... and our engineers, we think this $4 million cost is about what it’s going to take, but we need to figure out how we’re going to fund it,” Graham said.
Graham presented three options on how to move forward with the project bid, including:
- Option 1: Proceed with the current bid. With a contingency included in the price, the option would cost about $4.5 million.
- Option 2: Remove the lighting around the exterior legs of the elevated tank, which would save about $210,000. With a contingency included in the price, the option would cost about $4,275,000.
- Option 3: Remove the lighting around the exterior legs of the elevated tank as well as the sitework and landscaping, which would save just over $610,000. With a contingency included in the price, the option would cost about $3,689,000.
What they're saying
Members of the TIRZ No. 1 board, which includes the City Council, one member of the Planning and Zoning Commission and one member elected by Collin County, expressed mixed opinions on which option to proceed with for the project.
Darrell Hale, TIRZ No. 1 board member and the Collin County Commissioner representing Precinct 3, expressed concern for spending TIRZ funds on the project. Hale said he agreed with the remediation effort being within the purview of the TIRZ board, but referred to the rehabilitation project as a “very expensive item.” The TIRZ No. 1 zone, which encompasses downtown McKinney and parts of the SH 5 corridor, has other needs that the TIRZ No. 1 fund could address, Hale said.
“If it’s a million dollars to tear it down, and it's $4 [million] to $5 [million] depending on which option gets picked, you’re still talking about a $3 [million] or $4 million delta for what amounts to just a symbol,” Hale said, noting that the water tower will also have ongoing maintenance costs. “It’s a very expensive piece of culture at that point, because that’s what it’s being kept for, is culture.”
Outgoing McKinney Mayor George Fuller said that during a previous rehabilitation effort, community members expressed concern for the water tower potentially being removed.
“The community let us know last time that this is a part of the skyline that they feel is extremely important and is architecturally significant, and had no appetite whatsoever to see it torn down,” Fuller said.
Outgoing council member Charlie Philips said that he supported pursuing option 1 due to the TIRZ No. 1 fund’s current balance and annual collections being able to support both the rehabilitation work and other projects the board has committed funds to.
“Don’t skimp on pennies and dimes, protect your investment in downtown McKinney because you want to see it grow ... and with what we have out there right now, that’s not conducive to that kind of growth,” Philips said to the board of the existing structure. “Let’s do it the best we can do it, I think the citizens of McKinney deserve our very best.”
Also of note
Fuller also questioned city staff about existing cellular service equipment on the structure, asking if it could be removed or hidden on the structure. Council member Justin Beller said he was interested in the equipment remaining, and the city collecting revenue from the leases from cellular companies with mounted antennas to support the cost of the structure.
Graham said that equipment not being used will be removed, but some T-Mobile equipment will remain on the structure through its contracted lease ending in 2030. At the end of the lease term, city officials could choose to not renew the lease and encourage the cellular provider to relocate the equipment to another nearby cell tower, Graham said.
The action taken
Board members ultimately voted 8-1 to approve proceeding with option 1, which would include all project elements for a total of $4.5 million. Hale voted against the motion.
The council subsequently approved a budget amendment, reallocating $500,000 from the Hotel/Motel fund and $725,000 from the TIRZ No. 1 fund to contribute to the construction cost. Council members also approved a construction contract with Blastco Texas Inc. for the project.
Construction on the project is expected to begin this summer, the city’s website states.
